Car loan

Big discounts with a car loan from MAXDA

The car loan from MAXDA for new cars and used cars: use our car loan to find the cheapest financing for your vehicle. This way you can appear as a cash buyer at the dealer and expect attractive discounts!

Dealer financing offers and terms are often not very flexible or are tied to certain models. The MAXDA car loan is individual, quickly applied for and offers tangible benefits for car buyers:

The affordable MAXDA car loan:

• low interest rates for your vehicle loan
• fast loan approval through MAXDA
• appear as a cash buyer and secure discounts
• free choice of insurer
• the vehicle title (KFZ-Brief) remains in your possession
• processing of your car loan request even on weekends

Many car buyers who have found their dream car at their trusted dealer today use the option of taking out a loan for the car. This makes it unnecessary to pay for the car from savings. The vehicle can be financed in monthly instalments. The instalment amount for a car loan depends on the chosen contract term, which can be agreed individually for the financing.

Your car loan from MAXDA

Fast & easy to your next car

A car remains a symbol of mobility in this country. Especially in rural areas, people still rely on having their own car to get to work and to buy everyday necessities. Few can simply afford a new or used car from their own assets or income. With an attractive car loan and good terms, however, it is usually possible to finance the purchase of a car. If you are looking for an affordable car loan, take a closer look at our offer! We provide you with car financing that fits with tailored features and a customized loan amount at truly favorable interest rates!

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What is a car loan?

The term car loan is colloquially used for various forms of car financing and also refers to an installment loan specifically tailored for purchasing a car. Essentially, every car loan is about covering the purchase price of a vehicle with external funds and repaying the borrowed amount plus interest within a certain period. Below we present different forms of car loans:

The classic installment loan

Many banks today grant installment loans without a predefined purpose. These can of course also be used to finance a car. An installment loan is characterized by fixed, equal instalments. The interest portion decreases with each subsequent payment, while the repayment portion increases accordingly. A repayment schedule for an installment loan with a loan amount of €8,000 would look like this for the first 12 months, for example:

After the first 12 months the interest portion of the repayment has almost halved, so the principal can be repaid even faster. This effect occurs because interest is only charged on the remaining balance.

The specialized car loan

A specialized vehicle loan is the classic form of car financing. The borrower takes out a loan for a new or used car from the bank and specifies the intended purpose. Compared with a conventional installment loan, this has some advantages:

Lower interest rates:

It is not uncommon for car loans to be offered on more favorable terms because the bank knows the intended purpose. The vehicle is an asset that can serve as collateral in an emergency. This reduces the risk of default, allowing for better terms.

Additional security:

Some car loans are still secured today by the transfer of ownership of the Zulassungsbescheinigung II (formerly vehicle title). However, this is also only possible with a specialized car loan.
Apart from these specifics and the purpose restriction, the car loan is structured like a conventional installment loan. We offer you the opportunity, in cooperation with many partner banks, to find a car loan that suits you perfectly and also protects your wallet.

Apart from these specifics and the purpose restriction, the car loan is structured like a conventional installment loan. We offer you the opportunity, in cooperation with many partner banks, to find a car loan that suits you perfectly and also protects your wallet.

Dealer financing

Another way to finance a car is to take out a loan directly through the car dealer. Nowadays almost every dealer works with a captive bank and offers seemingly favorable financing terms when buying a car. Sometimes there are even so-called "0% financings" where no interest is charged at all. Nevertheless, dealer financing does not have to be cheaper. The following arguments can speak against it:\

• Lower discounts: Since the cash-buyer discount is not available with dealer financing, a significantly lower discount can typically be negotiated overall than with a bank car loan.\
• Model-dependent interest conditions: Dealers may promote certain models with favorable interest rates. For this reason, the very low interest rates are mainly offered for rather expensive models.\

The following example is intended to show what matters when deciding between dealer financing and a car loan:

Dealers often also offer comprehensive packages in terms of motor insurance with dealer financing. A closer look is also advisable here, because the insurances in this area are not always actually cheap.

When should car buyers prefer dealer financing?

Dealer financing is only cheaper than a conventional car loan when the interest savings outweigh the cash-buyer discount. Therefore, it is important to calculate both options before making a decision. Loan comparison is the starting point here, and it represents another advantage of a car loan. We also offer you a loan with particularly favorable terms because we compare individual banks in advance and select the most attractive car financing for you.

The vehicle loan with a final installment

A car loan with a final installment is often called balloon financing, because a high final payment (balloon) is due at the end of the term. The big advantage is that the borrower pays significantly lower monthly instalments during the term than with a conventional car loan. This is because the entire loan amount is not repaid through the instalments; instead a sometimes quite high final payment remains. A balloon car loan can typically only be taken out through a car dealer and has the following pros and cons:\

Advantages:

• Low monthly burden during the term
• More expensive car models can also be financed this way

Disadvantages:

• Higher interest costs, because the final payment is interest-bearing over the entire term
• High final payment that can be easily underestimated
• Risk of having to take out another loan with interest costs if the final payment cannot be made
• Risk that a sale does not generate enough proceeds to pay off the final payment\

When is a car loan with a final payment sensible?

Because a car loan with a final payment is almost always more expensive overall than a conventional car loan, it is rather a last resort. Such financing is only sensible if the borrower otherwise cannot afford the higher instalments for their desired car. In this case, however, it should be ensured that a larger inflow of funds can be expected at the end of the term (fixed-term account matures or a life insurance policy can be used).

Tip: Do you need a new car but can only afford a small monthly rate? In this case, a longer loan term could also be interesting for your car loan. We will gladly help you find the best balance between interest costs and instalment amount!

Car leasing

Leasing is another form of car financing. Here the car is not purchased but rented for a monthly leasing fee. Leasing brings some peculiarities:

Lessee initially not owner: The lessee does not become the owner of the vehicle but returns it at the end of the term or buys it at that time.\

Costs often unclear: The costs of leasing offers are not always easy to capture, as there are several cost sources. On the one hand, all lessors charge a monthly leasing rate. In addition, a special down payment is often due at the start of the contract. Only the combination of these two points reveals the true cost of leasing.\

Additional costs at contract end: If lessees choose mileage leasing, they may only use the vehicle for a certain annual mileage. If mileage is significantly higher, extra payments per kilometre are charged. With residual value leasing, the lessee bears the residual value risk. If the vehicle cannot be sold at the agreed residual value at the end, the lessee must pay the difference out of pocket.

When is car leasing really interesting?

Generally, car leasing is a rather expensive form of financing. You only pay for the use of the car and do not acquire ownership. While the expenses may seem low at first, lessees forgo the vehicle's residual value at the end of the term. They could often sell their own used car for an attractive price after a few years. There are situations where leasing can be interesting, however:

• Business owners can deduct leasing fees as expenses immediately for tax purposes without having to activate a new asset.
• Those who want to drive a car model they cannot possibly afford to buy may find a solution through leasing.

  

How to apply for a car loan

Are you interested in an affordable car loan and want to apply easily in cooperation with specialists? Then you are in the right place with us, because we will find a tailored car financing solution for you at favorable interest rates. Only the following steps are required:\

1. Entering personal data
   
   For a loan request the respective bank requires personal data such as your name, date of birth and place of residence. These data are essential for the loan contract, as is the desired loan amount.\
2. Information about employment situation
   
   In the second step it is important that you provide information about your employment situation. You should indicate whether you are employed, have civil servant status or work as self-employed. In addition, it is important to describe your regular income and expenses in more detail. Only in this way can it be determined whether the conditions for a car loan can ultimately be met. Creditworthiness must also be sufficient.\
3. Print and sign the loan application
   
   You will then receive your loan application from us by email and by post. You must print (email version), sign and return it to us together with some important documents.\
4. Add and send documents
   
   To substantiate the information about your employment, a current payslip or pension notice is also required. Send all documents to us by post.\
5. Your personal loan consultation from MAXDA
   
   We will contact you and together find a car loan whose features are fully tailored to your needs. For this purpose we use our loan comparison and select the cheapest car loan with suitable features for you from numerous offers.

What is important for a car loan?

Anyone interested in a car loan naturally wants to take it out as cheaply as possible. A car already brings corresponding running costs through fuel consumption, taxes, repairs and insurance. The following questions are therefore particularly important when searching for a car loan:

Which interest rate is decisive in loan comparison?

The market for car loans is large because many banks offer such financing. But how can a cheap car loan actually be identified? The correct cost measure for a loan is the so-called effective annual interest rate. This is a legally defined figure which, according to §6 of the Price Indication Regulation (PangV), must include the following cost items for consumer loans:\

• The nominal interest rate (pure interest costs) - nominal rate
• Brokerage fees
• Account management fees\

This makes it easy to spot low nominal interest rates with hidden fees, because the effective annual interest rate must include all obligatory cost items.\

Why is comparing loans so important?

A loan comparison makes it possible to pick out the car loan from many different offers that best matches your needs and also offers particularly favorable terms. The following example illustrates how much can be saved by choosing a cheaper loan:

Do not hesitate to apply for a car loan with us, because we also work with a loan comparison from many different car loans. In this way you save a lot of money overall!

Are special repayments or full repayment before the end of the term possible?

In principle, the legislator has determined that consumer loans may be repaid early by special repayment.

According to §502 (1) BGB, banks may, however, charge a prepayment penalty for this,

which was limited in amount in §502 (3) BGB:

• For a remaining term of more than one year the prepayment penalty may be at most 1% of the amount repaid early.
• For a remaining term of less than one year the prepayment penalty may be at most 0.5% of the amount repaid early.\

Since many banks now offer free special repayments, we mainly mediate car loans with this option. If this is particularly important to you, we can pay special attention to it when choosing the loan!

How quickly is a car loan paid out?

The speed of disbursement for a car loan depends on many factors:\

• Submission of documents (quick submission by the applicant speeds up disbursement)
• Speed of the bank
• Type of application process (with a fully digital application the signature can be made using a qualified digital signature – disbursement can be possible after one day)\

As a rule, however, it can be assumed that the funds from a loan will be available within 2–7 days (with corresponding creditworthiness). If the money is urgently needed, this should be taken into account when choosing the bank to obtain a faster disbursement of the total amount.

Do I always have to provide my vehicle title (Zulassungsbescheinigung II)?

Providing the Zulassungsbescheinigung II to the bank is considered a specific security for a car loan. In the course of a transfer of ownership as security, the lender becomes the owner of the vehicle during the term while the borrower can use it. If problems arise with loan repayment, the bank can satisfy its claims from the sale of the vehicle. However, this entails two major risks for banks:

1. The vehicle could be significantly devalued due to damage.
2. The vehicle could be completely destroyed, in which case the security would be lost.\

For this reason, some banks already refrain from transfer-of-ownership securities and are satisfied with assignment of wages and salaries as security, as with a conventional installment loan. In this case the bank only needs to be able to verify by invoice that the car loan was used for the intended purpose.

What happens if I can no longer pay the loan?

If loan repayments to the bank are missed, good crisis management is particularly important. It may be possible to reduce the instalment amount (for a fee) or to take a one-month payment break. Some banks also offer free payment breaks or instalment adjustments. It is particularly important that borrowers contact the bank at the first signs of payment difficulties. If two instalments are unpaid without clarification, many banks terminate the loans. In this case the loan must be repaid in full at once and, after a deadline, this can even lead to a negative SCHUFA entry.

Is residual debt insurance sensible for a car loan?

Even today, many banks still offer residual debt insurance when taking out a loan. The question naturally arises whether the insurance is actually sensible. Its benefits mainly cover the following areas:

• Assumption of loan repayment in the event of death
• Assumption of loan repayment in the event of unemployment
• Assumption of loan repayment in the event of incapacity for work\

Whether the sometimes rather high costs for residual debt insurance are worthwhile always depends on two questions:\

1. How high is the probability of an insured event? (the longer the term, the higher)
2. What financial consequences would the insured event have? (the larger the loan amount, the more serious the consequences)\

Thus it depends on the amount of the car loan and the length of the term. For a small financing for a used car, residual debt insurance is certainly less attractive than for a car loan of €40,000 with a term of 6–7 years. Borrowers should bear in mind that the costs of residual debt insurance are not included in the effective annual rate but are charged additionally.

What are the advantages of taking out a car loan online?

Anyone interested in a car loan from a bank can choose to go to a local bank branch or use online offers from various banks. The online option has several invaluable advantages:\

• Comparability:
  Online loans are also very easy to compare for car financing. This makes it possible to quickly and simply scrutinize the terms and ultimately find the car loan with the lowest interest.\
• Time independence:
  Applicants can take out a car loan at any time, so they are no longer bound by the bank's opening hours. This eliminates the time pressure of bank appointments during working hours.\
• Cheaper terms:
  An online car loan tends to be cheaper than comparable loans from local banks. Internet-based direct banks often do not have to cross-finance large branch networks and can therefore offer their car loans more cheaply.\

  

Car loan without SCHUFA

Those who already have a negative SCHUFA entry (negative creditworthiness) often find it difficult to obtain any loan at all. With us, however, it is also possible to get a car loan without SCHUFA. Some conditions must be met for this:\

• Net income above €1,150 per month
• Secure employment situation (no fixed-term contract, no self-employment, no probationary period)
• Residence in Germany\

If you meet these requirements, you can also apply for a car loan without SCHUFA with us, which in such cases is one of the few possible financing solutions for purchasing a car.

What characterizes a car loan without SCHUFA?

In construction, a car loan without SCHUFA is a normal purpose-bound installment loan, but it has the particularity that no SCHUFA inquiry is carried out when concluding the loan. In addition, the lender does not report the loan to SCHUFA, so the financing takes place somewhat "under the radar". Because lenders waive the credit check, a car loan without SCHUFA is often significantly more expensive. Such financing is therefore only interesting if a negative SCHUFA entry makes a conventional car loan impossible.

With MAXDA to an affordable car loan!

A functioning car is still a prerequisite for daily life for many people. If you belong to this group and are looking for an attractive car loan, you are in the right place with us. Our experts help you find a car loan that fully meets your needs and is also exceptionally affordable. Take advantage today of the chance for car financing that saves your nerves and your wallet!

New dream car without cash - with the MAXDA car loan!

Remain independent with a car loan from MAXDA. For over 40 years MAXDA has mainly served private customers and therefore knows all the requirements you place on a car loan.

Cars must adapt to our lives today – not the other way around. While a single person may be satisfied with a small car or a pure roadster, a small family usually needs an estate to store a stroller and other items. The flexible MAXDA car loan can be applied for individually and therefore fits every motoring phase of life.

Those who want to combine the advantages of paying cash with those of financing should consider a classic car loan from MAXDA. With the disbursed car loan, buyers can appear as cash buyers at the dealer and often negotiate a high cash discount.

Applying for the MAXDA car loan is simple and fast, so you do not have to wait long for a credit decision. Another advantage is that the car loan can usually be structured very flexibly and can be repaid early without difficulty.

Who offers car loans?

Who offers car loans?

Many car loans are concluded directly at the dealer, who forwards the loan applications to captive banks without detours. Special loans for new cars can sometimes be found here, occasionally even offered with 0 percent annual interest. These loans are subsidized by the manufacturers who expect higher sales in return.

In addition to taking out a car loan at the dealer, there is also the option of using alternative loan offers from online specialists like MAXDA, who also offer attractive terms and thus enable affordable financing. A major advantage of these loans is that car buyers are independent of promotional offers from captive banks, which are often only temporary and apply to certain – not infrequently very high-priced – models.

The classic car loan

The classic car loan

The car loan is often processed via a classic installment loan, which offers constant monthly instalments and a fixed term. The term is usually agreed between two and six years and forms the basis for calculating the instalments. Longer terms reduce the instalments, while shorter terms increase the monthly instalment.

The instalments for this car loan are calculated so that the loan is fully repaid at the end of the term. When the final instalment is paid, borrowers become the owners of the vehicle and can sell it or continue to use it as they wish.

The advantages with the MAXDA car loan

Advantages of refinancing

• Online processing guarantees favorable car loan interest rates
• Appear as a cash buyer at the dealer and receive a discount
• Flexible instalments and terms
• MAXDA enables early loan repayment

To take out a car loan, applicants must be at least 18 years old. In addition, a steady monthly income is required, which is then used to repay the loan instalments. These requirements are checked on the basis of the loan application, which is submitted online to MAXDA.

If all requirements are met, the requested loan amount can be disbursed and the loan sum transferred. Often the money from the car loan is available after just a few days, so the desired car can be purchased at short notice.

Leasing as an alternative to a car loan?

Some drivers today are no longer interested in owning a vehicle. They therefore opt specifically for affordable financing solutions that provide for the vehicle to be returned at the end of the term. A classic among these financings is leasing. The idea: the customer makes a down payment and commits to paying a monthly leasing rate until the end of the term. Afterwards there is the option to return the vehicle or to purchase it at the residual value if desired.

As a rule, lessees return the vehicle and choose a newer or different model as the next leased vehicle. The tax advantages of leasing are mainly relevant for companies, less so for private individuals.

Newer hybrid forms of leasing are tailored to private individuals. However, consumers should pay close attention to the effective interest rates and the included services. Often a bit more comfort is bought with expensive interest rates. Leasing offers are often not worthwhile for private individuals, which makes the classic installment or car loan a far more attractive alternative.