That makes sense – the car loan with special repayment

The car loan with special repayment only works with an installment loan. The special repayment is an option and this is already agreed in the contract at the beginning of the term. If a car is financed, this option should be considered.

The variants of the car loan

The variants of the car loan

Usually, the dealers who sell a vehicle offer financing for the vehicle. The conditions are similar to the conditions on the free market for free use. With a credit for free use, the car buyer still has the advantage that he appears as a cash buyer at a dealer and can negotiate a discount there. Car buyers should always check this possibility.

In addition, there is also the possibility to get the car loan with special repayment. A prospective customer can ask the car dealer whether this loan is offered here. Special repayment is only an option, but car loan with special repayment offers many advantages. The prospect can choose this option, but does not have to. When taking out a car loan with special repayment, this option is one of the main conditions such as the loan amount, the term and the interest rate. A car loan with special repayment is only attractive if the special repayment is also free of charge.

What options does special repayment offer?

The type of financing is an installment loan, where the special repayment can be arranged for a car loan. If a prospective customer attaches importance to the special repayment, the option is included in the loan agreement. This clause in the loan agreement is then not mandatory for both parties. However, it often happens that a borrower has short-term financial options or the vehicle is sold before payment in installments expires. At this point, an installment loan with special repayment offers itself. The special repayments are partial repayments that are higher than the normal monthly rate. A total repayment can also result from a single installment, which is also named as a special repayment.

However, since the financial means are rarely so high, this option will not appear very often. But if you have the option of a special repayment, for example because you get a raise or Christmas bonus, you should take advantage of the opportunity. If the special repayment can be made free of charge, then it is a great savings in interest. However, it is really important that there is no prepayment penalty. A vehicle does not get younger and the value decreases, which is why the financing should be shorter and longer. Anyone who completely replaces the vehicle with a special repayment can freely dispose of it.