It can always happen that the car suddenly strikes. For example, the car makes strange noises, a symbol flashes or, in the worst case, the vehicle even stops directly on the track. In these and similar situations the way to the workshop is inevitable. But such a repair can be more costly than initially thought. So it is quite possible that the amount that is in the current account, is not sufficient to pay for the workshop costs. A remedy for this problem creates a loan, so the car is then certainly quickly ready to go again.
Cost of a car
A car regularly brings with it high costs that have to be handled. In addition, there are also repairs that often strain the wallet beyond measure.
The cost of a car is not to be despised. So it’s not just the purchase price that a budding car owner has to pay and often is considerable. Because the ongoing fuel costs are to be paid. But that’s not all, so join here, for example, also the necessary insurance amounts and the vehicle tax to do so. All in all, this results in a not to be despised sum. In addition there are the recurrent costs for the inspection and the TÜV.
In addition, as a car owner, you have to expect the various repairs to occur. This may, for example, also be the replacement of wearing parts, as well as a very large repair, in which a variety of things must be replaced. However, this can certainly be a problem, because not, for example, has several thousand euros for free use in his checking account. Nevertheless, it is urgently necessary to have the repair done so that the car is ready to drive again.
Credit for the car repair
With the help of a loan, it is possible to pay for the repair costs incurred. As a rule, either a disposition or installment loan is used for this purpose.
If a major repair is suddenly necessary, it may not be possible for every driver to pay for it immediately. A way out of this dilemma offers a loan: Thus, it is easily possible to pay the accumulating sum. For example, installment credit is one of the most frequently used loans in addition to the disposition credit.
But not only when a larger sum is needed, the inclusion of a loan offers. For example, even with a smaller amount it is possible to take out a loan . After all, it can also happen that the repair is not very expensive but at an unfavorable time. For example, after Christmas, when a large number of bills have to be paid in addition to the beginning of the new year, car repair is very often inconvenient.
The so-called Dispo is an uncomplicated, very flexible way to pay for the car repair. However, this often involves high interest rates.
Here, the prospective borrower negotiates with his house bank a specific framework in which the own current account can be overdrawn . Unless an explicit time is mentioned here, at which the dispo must be repaid, the borrower can take this time. So it is up to him, when the repayment is made. In addition, there is no need to look for specific amounts here. So it is quite simply always some money left in the account until the Dispo is eventually balanced. If a new emergency occurs and the disbursement credit has not been reversed, it can be used again at any time without informing the bank about it. However, this enormously high flexibility also has its price: Dispo is one of the most expensive types of credit, which is why here with a fairly high interest rate must be expected.
In the case of an installment loan, the pre-agreed installments are simply repaid every month during the term .
A very good alternative to the Dispo is the installment loan. This is a classic loan option used by a large number of borrowers. The procedure for such a loan is quite simple: For example, it is determined during the credit conversation with the bank, among other things, what the budding borrower needs.
This involves discussing the conditions for repayment. To a certain extent, the borrower can choose the duration and the monthly installments. The latter remain the same throughout the entire runtime. Only the first or last rate may differ slightly from the other amounts. However, this is usually only the case if the loan amount together with the fees incurred results in an amount that can not be divided equally between the respective installments. Accordingly, an installment loan is a highly predictable loan.
In contrast to the discretionary credit , the interest rate here is usually much lower. So it is certainly not surprising that many borrowers prefer such a loan to a Dispo.
To obtain a loan, the borrower must meet a variety of conditions. This includes, for example, a good credit rating .
However, in order to be granted a loan from the bank, the prospective borrower must meet various requirements. This includes, for example, a safe, regular income. Likewise, the banks demand a good credit rating as well as a positive bank statement. In addition, it is also customary for a German checking account and a permanent German residence to be present.
However, those who do not fulfill the desired conditions do not necessarily have to forego a loan. If, for example, sufficient collateral is available, it is quite possible that the bank will nevertheless forgive the desired loan. The collateral includes, for example, Bauspar contract or a property, such as an already paid house. Depending on the value of the car, it may also be feasible to specify it as collateral.
Or simply a guarantor or a second borrower is called in . Of course, the person concerned must also fulfill the various requirements. If that is the case, there is certainly nothing standing in the way of a loan and of course the repair of the car.
Payment protection insurance
Some banks offer the completion of a residual debt insurance. Here it is advisable to rethink your own individual situation and then decide for or against the insurance.
While some banks, depending on the loan amount and situation of the borrower, insist on the conclusion of a residual debt insurance, other banks offer this optional. It should be kept in mind, however, that one must settle the amounts for the insurance in addition to the monthly installments of the loan.
It is also important to consider whether the conclusion of such insurance is worthwhile for yourself. A residual debt insurance occurs in case of unemployment or death of a borrower. For example, if a 20-year-old single only receives a small loan amount to handle the necessary car repair despite a current financial shortage, such insurance may not be necessary. By contrast, in the case of a married father, the conclusion of such insurance would be advisable. Accordingly, the very personal situation should always be included in the considerations.