If a car loan is to be taken out, two aspects are decisive above all: the credit period and the resulting amount of the monthly loan installment. Both can be determined individually. As with other installment loans, a longer contract term leads to lower monthly installments. If, for example, a car is paid off over a period of six years, instalments are lower than if the same amount is paid off within four years. See this article buy now pay later guaranteed approval | Muscle Car Facts for more info.

Even if it seems tempting to repay the monthly installments for car financing as quickly as possible and to keep the credit period accordingly short, it should first be urgently checked whether the planned monthly charge can actually be met. At the same time, however, the loss in value of the car should also be taken into account, which speaks against excessively long terms. For reasons of loss in value, it is not advisable to have a term of more than 48 months. However, if the car is only to be used for a short period and then sold, the loan should be paid off accordingly over a shorter period and in higher installments.

In addition, the make and model of the car to be financed play a not inconsiderable role in determining the financing conditions. For example, financing a new Smart is cheaper than financing a Mercedes C-Class. The actual purchase price and any down payment also have an effect on the financing.

Car financing through a bank or car dealer

A further prerequisite for the conclusion of a car financing contract is the decision in favour of a financier, i.e. dealer, car bank or bank. Based on the selection of the lender, the offer of the available financing and the conditions vary.

Use the annual percentage rate of charge as a benchmark to compare the dealers’ offers with those of the banks in terms of the lowest total price. In order to obtain favourable financing offers from banks, it is best to use smava’s car financing calculator in an uncomplicated way.

Car financing: What are the requirements?

Applying for a car loan online is not particularly time-consuming. The prerequisites for taking out a car loan are initially the same as for other installment loans, but are supplemented by the vehicle details. As a rule, anyone applying for a car loan must meet and prove the following requirements:

Positive Schufa
Account in Germany
Residence in Germany
German citizenship or valid residence permit
Regulated income and employment outside the probationary period

It may be difficult for consumers who, for example, have debts, have only a low income or earn money freelance or through self-employment to meet the conditions for car financing. The approval of the financing is only conditionally possible in such cases.

Documents to be submitted for car financing

What does it take to finance a car? If the consumer meets the necessary requirements to take out a car loan, further documents must be submitted, which in turn act as a prerequisite for taking out car financing. The exact requirements vary from bank to bank. However, the following information is often required:


Account statements with incoming salary or tax assessment notices for self-employed persons
Copy of the sales contract or registration certificate Part 2 of the vehicle
make and model of the vehicle concerned
First registration
Mileage (for used cars)
Advantages of a car loan with smava

Car financing through smava is worthwhile for consumers who are looking for suitable financing:

Low interest

The comparison of the car financings of different large and well-known banks enables the consumer to find a favorable car financing. The online offer captivates with top interest rates.

Personal credit consultation

As a user of smava, you benefit from personal and free advice on all aspects of car loans. No matter whether you need to compile credit documents or compare different conditions of the different banks – the smava credit experts will advise you comprehensively.

Fast and flexible disbursement

Once you have submitted the necessary documents for the car loan online, the banks will check the loan application immediately. Processing takes place without unnecessary loss of time.

Highest data security

Smava complies with all data protection guidelines that comply with banking secrecy. The applicant’s data is transmitted via a secure SSL connection exclusively to banks and not to third parties.

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