For one car loan it is necessary to submit the vehicle registration document (officially: registration certificate II) to some banks. If you don't want to sell it, it's even recommended Credit against vehicle title to complete. Many were interested in the question "Which bank accepts car as security?“. Therefore, Konto-Kredit-Vergleich.de has checked which banks accept the vehicle registration document as a pledge for credit and which do not.
With the vehicle registration document as a pledge for credit, the Increased security for credit institutions. In this way, banks can provide financing on better terms. But people with low incomes can also use this “trick” to get a car loan. It is often necessary to deposit the vehicle registration document with the bank for people with low income often the only way to get financing for the set of wheels. Thus, the low income can be compensated by the pledged car letter.
In the article Car loan without vehicle letter submission exactly the opposite way is described. A car loan without the vehicle registration document (registration certificate part 2) has the advantage that a Selling much easier is because you have the vehicle registration document yourself. The disadvantage of the car loan without submitting the letter lies in the higher interest rates. If you use your car as collateral and hand over the vehicle registration document to the bank, you will receive an interest bonus of around half a percent to a full percent.
Which banks accept the vehicle registration document as collateral for a loan?
The table below shows which bank accepts your registration document as a deposit for a car loan. Also recognizable: Which banks don't do that!
|Bank||Vehicle title accepted as collateral for credit||More information|
|Santander*||✅ Yes, Santander Bank accepts the vehicle registration document as a pledge for a car loan||To the provider:
|targo bank*||✅ Yes, Targobank accepts the vehicle registration document as a pledge for a car loan||To the provider:
|postal bank*||✅ Yes, the Postbank accepts the vehicle registration document as a pledge for a car loan||To the provider:
|SWK Bank*||✅ Yes, SWK Bank accepts the vehicle registration document as a pledge for a car loan. At the SWK Bank, however, a loan can also be taken out without a car letter.||To the provider:
|1822 direct*||🚫 No, the 1822direkt does not accept the vehicle registration document as a pledge for a car loan.||To the provider:
|Bank of Scotland*||🚫 No, the Bank of Scotland does not accept the registration document as collateral for a car loan.||To the provider:
|ING*||🚫No, the ING does not accept the vehicle registration document as a deposit for a car loan.||To the provider:
|Norisbank*||🚫 No, Norisbank does not accept the vehicle registration document as a pledge for a car loan.||To the provider:
What is the procedure for depositing the vehicle registration document as collateral for a loan
When submitting the vehicle registration document, the signing of a so-called security assignment necessary. This contract regulates the transfer of ownership to the bank during the term of your car loan. It also states that you remain the owner of the car.
But something else is in the Assignment by way of security regulated: After the loan agreement expires, ownership of the car reverts to you. In addition, the bank has the right to sell your car if you default on the loan installments. So better buy a smaller car that you can really afford. Which car do you want at 1000 or 1500 euros net can be found in the linked articles. But even if you earn more, you can use the rules of thumb given there to define a range in which the car purchase price should range.
Loan against vehicle registration document: If the letter is not submitted as agreed, there will be trouble!
If the KFZ letter is not handed in as agreed, there is a risk of trouble. In this case, for example, the increase interest rate. After all, the lack of a vehicle letter means that there is no basis for the favorable interest rate.
Which bank accepts car as security?
A car as collateral is a popular and welcome form of protection for banks. For example, banks take: Santander*, targo bank* and also the postal bank* your car as collateral. Since there are many inquiries about "Which bank takes a car as security?" I have created an overview table.
✅By a "Vehicle registration document as collateral for credit" respectively. "a car as collateral" do you have the opportunity best conditions to get. A loan against a vehicle registration document is therefore ideal for anyone who is not planning to sell their car promptly (within the term of the loan).✅
⚠️ When the bank is yours accepts the vehicle registration document as collateral for credit, can he sales become more difficult. If you want to sell your car in a timely manner, better take one Car loan without a vehicle registration document as a deposit. I recommend the one that is considered unproblematic ING* ⚠️
Summary table: Which bank accepts a car as collateral?
|Bank||Bank takes car as security: yes (✅) or no (🚫)||More information|
|Santander*||✅ Yes, Santander Bank takes your car as collateral||To the provider:
|targo bank*||✅ Yes, the Targobank takes your car as security||To the provider:
|postal bank*||✅ Yes, the Postbank takes your car as security||To the provider:
|SWK Bank*||✅ Yes, SWK Bank takes your car as collateral. At the SWK Bank, however, a loan can also be taken out without submitting the vehicle letter.||To the provider:
|1822 direct*||🚫 No, the 1822direkt does not take your car as security.||To the provider:
|Bank of Scotland*||🚫 No, the Bank of Scotland will not take your car as security.||To the provider:
|ING*||🚫No, ING will not take your car as security.||To the provider:
|Norisbank*||🚫 No, Norisbank will not take your car as security.||To the provider:
recommendation: Car loan with security of the vehicle title at the Santander Bank
With the Santander loan against the vehicle registration document, you can get interest from around 2 %. However, this requires a good credit rating. The loan can be taken out for between 12 and 96 months. But it can also be sold after consultation with the bank. You can request the transfer fee from the bank for a fee of 10 euros. After you have transferred the required transfer fee to the bank, the bank will send the vehicle registration document to the buyer. A fee of 25 euros will be charged for this. This resulted in a total of 35 euros in costs. A manageable amount.
With a car as security, you have the chance to improve credit conditions
The security is provided by handing over the vehicle registration document to the bank. The bank keeps the vehicle registration document while the loan is running. This is a good way to get good financing conditions. Because with a car as security, the bank can reduce the risk of a loan default. However, selling the car is a bit more complex. When selling, the credit can be transferred to the buyer, for example, if he also wants a loan. There is also the possibility of rescheduling credit and thus get the vehicle letter back from the bank. This is often the easiest option.
If you want to learn more about selling a car with a car loan and a car registration document as security, I recommend the article: Sell a financed car: how it works.
Car loans without a deposit: The car loan without a car letter
However, there are also banks that do not require a vehicle registration document. Since a car loan is a earmarked installment loan, it may only be used to finance a car (or, depending on the bank, for a motorcycle or mobile home). In the Bank of Scotland* A copy of the sales contract must be submitted as proof. Other banks are more lax in checking earmarking. As well as ING*, norisbank* as well as 1822direct* want to make it as easy as possible for the customer. Thus, these banks refrain from checking purchase receipts.
Alternatives to credit against vehicle registration
There are several alternatives to financing a car without having to submit the vehicle registration document. What all alternatives have in common, however, is that they end up being more expensive. The loan with delivery of the letter to the bank is the cheapest due to the security of the vehicle registration document.
- At a Car loan without vehicle registration fee at for example the ING* you can keep the letter. This gives you much more flexibility if you decide to sell the vehicle.
- With bad credit rating are suitable Car loans without and despite negative credit bureau from providers like Bon credit*. These are a bit more expensive, but it is usually not necessary to hand in the vehicle registration document. In addition, these loans are also granted with poor credit ratings.
- Another alternative is to take out financing directly through a car dealership Which car dealership is still financed even with a negative Schufa entry you in the linked article. In general, however, this is not recommended because this financing is expensive and inflexible.
- Other options are a car subscription or a leasing contract. In the posts Car subscription without Schufa and Car leasing without Schufa you can find providers like Finn*, which offer inexpensive vehicles for leasing at fair conditions.
Conclusion on the loan against vehicle registration document
Konto-Kredit-Vergleich.de checked: Many banks offer one these days Loan without a vehicle registration certificate at. Presumably, the banks shy away from the expense of the additional check. Banks that will still accept your car as collateral include: Santander*, targo bank*, postal bank* and the SWK Bank*. The advantage of car financing with a vehicle registration document lies in the more favorable interest rates. With this financing, it must be accepted that there are some pitfalls lurking when selling. How you can avoid this is described in the article "Sell a financed car – Here's how“ described. Those who are not planning to sell the car are often better off with financing by letter. If you want to reserve the option of selling your car, a no-registration car loan is a better choice.
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Disclaimer: This is well researched but non-binding information. Under no circumstances are these purchase recommendations! Past performance does not guarantee future results.