What are the requirements for a car loan?

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you want one car loan record, tape? Then you can find out which ones here Criteria for taking out a car loan exist. The essential requirements for a car loan include: Income, place of residence and general creditworthiness of the borrower.

Car loan what is needed – Among the most important requirements of a car loan are a Minimum income of 1,300 euros which is to be proven via the last 3 payslips. You also have to apply for a car loan of legal age be and one German residence as well as a Account with German IBAN to have.

Some banks also require a copy of the purchase contract or the registration certificate II (vehicle registration) as proof of purchase for the conclusion of the car loan. You can find out which banks require the registration certificate II or the proof of purchase for the car loan and which do not in the article Car loan without vehicle registration. A copy of this table is also included in the next section.

If the bank asks for the registration certificate II and the purchase contract, it takes üUsually information about the vehicle make and type, the date of the first registration and the mileage (for used cars). Since the Vehicle registration at many banks as security serves for the loan, the bank will at Credit with vehicle registration not approve the loan if the car is significantly too expensive.

Which bank requires the registration certificate II (vehicle registration) and the proof of purchase for the car loan

Bankloan amountDurationFinancing without vehicle registration
Interest rate independent of creditworthinessSubmit proof of purchase?More information

noris bank car loan
1.000 €
until
50.000 €
12 months
until
96 months
Without vehicle registration ✅
Interest rate independent of creditworthiness: ❌
✅ No, proof of purchase does not need to be submitted

To offer:
norisbank.de


ING car loan
5.000 €
until
75.000 €
24 Months
until
84 months
Without vehicle registration ✅
Interest rate independent of creditworthiness: ✅
✅ No, proof of purchase does not need to be submitted

To offer:
ING.de


Bank of Scotland car loan
3.000 €
until
50.000 €
24 Months
until
84 months
Without vehicle registration ✅
Interest rate independent of creditworthiness: ❌
❌ Yes, proof of purchase must be submitted
To offer:
bankofscotland.de


1822 direct car loan
2.500 €
until
50.000 €
12 months
until
120 months
Without vehicle registration ✅
Interest rate independent of creditworthiness: ❌
✅ No, proof of purchase does not need to be submitted
To offer:
1822direkt.de


SWK Bank car loan
5.000 €
until
50.000 €
24 Months
until
84 months
Without vehicle registration ✅
Interest rate independent of creditworthiness: ❌
✅ No, proof of purchase does not need to be submitted
To offer:
SWKbank.de



DSL bank car loan
3.000 €
until
50.000 €
48 months
until
120 months
Without vehicle registration ✅
Interest rate independent of creditworthiness: ❌
✅ No, proof of purchase does not need to be submitted

To offer:
Credit.DSLbank.de


Car loan – what are the requirements? Eight essential points!

What conditions borrowers have to meet for a car loan. These are the most important requirements for a car loan.

1. Age of majority at borrowing

You must be of legal age to take out a car loan. The upper age limit is less rigid. The bank has to believe that you can repay the loan while you are still alive. Therefore, it becomes more difficult to take out a car loan as you get older. As a rule, banks do not give loans to over 70-year-olds.
If seniors still need a loan, this is possible through a guarantor or other collateral. However, it remains to be seen that seniors rarely take out car loans at this time. As a rule, this age group has sufficient savings.

2. Residence in Germany

Your place of residence must be in Germany. Your place of residence also affects your creditworthiness. The data analysis from Schufa Credit Compass 2022 shows that there is one gradient between north and south gives. People with negative characteristics are also more common at SCHUFA in the Ruhr area.

3. account in Germany

An account with a German bank is mandatory.

4. regular income

For a car loan, you should have a regular income of €1,300 or more. The higher your income, the lower the risk that loan installments can be serviced. Therefore, banks prefer to lend to people with higher incomes. This doesn't mean that low-income people shouldn't take out a car loan. It's just a little harder. The fact is that the necessary income is a question of the desired loan amount. Disposable income is of particular interest when granting loans. This is the available monthly money after deducting fixed costs such as:
– Rent and ancillary rental costs
– existing real estate or construction financing
– cost of living
– any maintenance obligations towards children
– already existing loan installment payments or leasing contracts

5. income for the self-employed

Similar to workers and employees, the income of the self-employed must also match the desired loan amount. When lending, banks require Insight into the sales of the last months. Furthermore, it is necessary to be able to show the annual tax assessments when lending. If increasing sales are to be expected in the future, sales forecasts by experts can also be used. As a rule, banks do not grant loans if the self-employed activity has not been practiced for at least two or three years.

6. The budget

If the desired loan amount matches the disposable income, the bank creates a budget to determine the monthly rate and thus the term. One point of discussion that often comes up is how high the monthly repayment should be. A higher repayment leads to faster repayment and thus lower residual debt. This sets off a compound interest effect in the opposite direction and borrowers can save a lot of money. On the other hand, after paying the monthly loan installment, the budget should still have some "breathing room" in case of unforeseen expenses or a reduction in income. Therefore, it does not make sense to choose the repayment as high as possible.

7. Permanent employment advantageous

This is not a mandatory criterion. Finally, various people with fixed-term employment also get a loan. However, not from every bank.
Furthermore, lending can fail even with good earnings if there is still a probationary period. Employees in the probationary period and in fixed-term employment have the option of providing collateral or relying on a guarantee. Another tip is borrowing with 2 people, which improves creditworthiness and can lead to the green light when lending.

8. Positive Schufa information advantageous

Many, but not all, banks ask for your Schufa score. A higher score increases the chances of getting a loan. Caution: If a loan request is made to several banks at the same time, the suspicion may arise that you want to apply for several loans at the same time. The Schufa sanctions such behavior and reduces the value. The desire to compare offers can reduce your Schufa score. Therefore, you should pay attention that merely a credit condition request is provided. This query was set up for comparison and will not affect your Schufa score

What documents do you need to meet the requirements for a car loan?

So that the bank can grant the loan quickly, you should submit the required evidence immediately and in full. Since the car often serves as security for a car loan, some information about the car is added to the general documents. Documents relating to the car are used to determine the value of the vehicle.

The banks usually require these documents for the car loan:

  • identity card or passport with registration certificate
  • Payroll accounting of the last few months or a current pension notice
  • For the self-employed and freelancers: bank statements or tax assessments
  • Purchase contract (some banks)
  • Registration certificate II (some banks)
  • the Car make and model type (some banks)
  • date of first registration (some banks)
  • for used cars mileage (some banks)

Collateral is not always a requirement for a car loan

The vehicle registration document is primarily considered as collateral. Other possible securities are the assignment of wages or salaries and guarantees. Another option is to take out the loan together. The requirements for a car loan have not yet been met: Use several of the options offered or consider switching to a smaller car or a smaller loan amount.

Bankloan amountDurationFinancing without vehicle registrationInterest rate independent of creditworthiness 

noris bank car loan
1.000 €
until
50.000 €
12 months
until
96 months
To offer:
norisbank.de


ING car loan
5.000 €
until
65.000 €
24 Months
until
84 months


To offer:
ING.de

Read more here:Used car financing without a letter

Take out a car loan online

A Online car loan Signing up with a direct bank on a credit marketplace is becoming increasingly popular due to the favorable conditions. By comparing several providers, the best conditions can be secured. In addition, it is also very simple. After all, the online application can be completed in just a few minutes. The identity is determined either by Video-Ident or in a post office by Post-Ident.

Car loan for trainees or students

Adult trainees or students are often unable to meet the banks' income requirements. However, as soon as a guarantor OR a second borrower is available, banks often give the green light. Are you an apprentice or student and need a loan? Contact your parents or a relative with a good income and ask if he or she would like to sponsor you.

https://konto-kredit-vergleich.de/kredit-fuer-azubis/
Read more about the loan for trainees here!
https://konto-kredit-vergleich.de/kredit-fuer-studenten/
Read more about student loans here!

Car loan without car registration

Cheap financing and keep the vehicle registration document - the ideal financing nowadays, which can also be easily implemented with the right banks. All information and recommendations on the subject Used car financing without a vehicle registration document.

https://konto-kredit-vergleich.de/gebrauchtwagen-finanzierung-ohne-kfz-brief/
You can find more information about car loans without a vehicle registration document here

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Car loan requirements
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Car loan requirements
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Would you like to take out a car loan? Then you can find out here which criteria exist for taking out a car loan. The essential requirements for a car loan include: income, place of residence and the general creditworthiness of the borrower.
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