Car loan with guarantors

Buying a car can be required faster than you think. Career changes often involve not only moving, but also a longer and more difficult journey to work.

How to get a car loan

How to get a car loan

Getting to work by bus and train has been easy so far, but this issue can now become a problem. The remedy is to buy a car. It ensures the mobility you need to cope with the new commute. But who has pockets full of money and can afford a car like that? Taking out a loan is the only solution for many people to be able to guarantee the purchase of a car.

Take out a car loan

Take out a car loan

If you want to take out a loan for a car, you have to take into account that the loan is earmarked. In plain language, this means that the amount of money can only be used to buy a car and that the funds cannot be used at will. The conditions that banks offer to buy a car on credit are relatively cheap. The interest rate is approx. 6 percent and the period and the installments of the loan amount can be designed flexibly. “Only cash is true”, this saying also applies when buying a car.

Because the possibility of cash payment of the loan amount by the bank also guarantees the buyer to pay the purchase price in cash. Car dealers appreciate this by giving discounts on the cars they have bought or luring them with lots of extras. But not every citizen of our country is also creditworthy and has the creditworthiness, which is an essential prerequisite for borrowing. A car loan with a guarantor can be another way of borrowing.

The safe option – car loan with guarantors

The safe option - car loan with guarantors

Banks demand collateral, especially from customers who do not have sufficient creditworthiness or who have a negative Credit Bureau entry. Having a guarantor is the best way to solve the problem. In the case of a car loan with a guarantor, he ensures that the installments are paid on time, but is also liable if there are problems with the repayment. Not everyone is eligible as a guarantor, because he or she must also meet certain requirements that enable lending.

A car loan with a guarantor must be financially liquid, which means that it must have enough income to make the installment payments in an emergency. The guarantor’s Credit Bureau information must also be faultless, because in the case of negative entries, he is no longer an option as security. Furthermore, one should always be aware of a car loan with a guarantor that if there are difficulties with the loan processing, this not only has to bear the running costs, but must also pay the installments of the loan.