Interest rate bonus at manufacturer banks – none
State employees have a very good reputation. They are considered safe and punctual repayers. When it comes to credit requests, “state servants” are literally courted by all lenders. Long-standing employees are no different from civil servants for life. Nevertheless, the car dealer does not offer a specially tailored car loan for public servants. This is not surprising, at least not for new vehicles. http://www.sketchovision.com/bad-credit-car-finance-loan-term-easy-bad-credit-car-finance/ for an assessment
Because hoping for less interest than “interest-free” is rather unlikely. Apart from that, the banks behind the car dealers have a wide range of offers.
If there is even the slightest chance, every “reasonably solvent borrower” should be able to buy a new vehicle. For two dimensions, so that a car loan for employees in the public service attracts with special conditions, there is no scope.
Financing a new vehicle with a third party – save 30 percent
It is not possible to finance the new car more cheaply than without interest. Nevertheless, this sales argument can easily be refuted. However, only if the entire vehicle purchase is included in the invoice. The crux of the matter is the discount for cash payers. An average of around 10 percent discount on the list price can be achieved with “in-house financing”. It is different if the car loan for public servants comes from a third-party bank.
The latest figures come from SZ in mid-2017. The newspaper confirms that the average discount from paying for the new vehicle in cash is around 30 percent. Of course, it always depends on the model and brand, but it creates a realistic scale.
Do the math yourself – use a cash discount
Anyone in the dealership can become a cash payer, even without saving a lot beforehand. Applying for a car loan online for public employees is quick and risk-free. For example, if the new car costs a list price of 25,000 USD, a 10 percent discount with a manufacturer’s loan is realistic. This would finance 22,500 USD without interest.
With a term of 72 months, the installment payment is $ 312 per month. The car loan for employees in the public service, for example a Lite Lender dream loan, can be used to realize a 30 percent discount.
This would finance a car loan of $ 17,500. However, the loan costs interest. According to 2/3 example, again with a term of 72 months, 2.89 percent APR. Nevertheless, the monthly rate is significantly lower. The car loan costs a monthly installment of $ 265. This includes 1,561 USD in credit costs. The bottom line is savings of 5,939 USD compared to interest-free manufacturer credit.
But what about the used one?
Official bonus for used cars?
The courtyards of the car dealerships are full of good used vehicles. Older babies are exported directly. High-quality used cars are reserved for the domestic market. However, they still cost a lot of money. According to statistics, an average of around 15,580 USD in branded retail and 8,850 USD in free trade.
Similar values can be derived from the figures of the ADAC (2017). Unfortunately, there is no special car loan for employees in the public sector either. On top of that, the interest rate level of the manufacturer banks is even relatively high. It is roughly at the level of an installment loan with no earmarking. For example, a used car loan from the Agree Bank, with a term of 60 months, currently costs 3.99 percent APR.
Finance online – save interest immediately
Online, directly applied for from the loan comparison, the good used vehicle is financed at significantly lower interest rates. Take the loan from Best bank as an example. The bank grants 15,000 USD car loan, 60 months term, according to PAngV at 2.69 percent APR.
B-tariff credit via Lite Lender, the same requirements, costs 2.89 percent APR. However, this does not mean that the savings opportunities offered by car loans for employees in the public sector to buy commercial vehicles are not exhausted.
According to statistics, used vehicles cost a little more than half in “free trade” compared to “brand trade”. A good 50 percent less in purchasing from private purchases are still unrealistic. But between 15 percent and 20 percent. The ADAC specifies the number 15 percent. More than 20 percent can be derived from other sources.
In addition, the bottom line is double the bill. Firstly, by saving interest on car loans for public servants.
Plus, the freedom to own the cash to buy privately.
Problems with lending?
Problems with lending are rare among civil servants and civil servants. Nevertheless, they are of course not excluded. For example, with high existing debts or short terms of employment, lenders tend to be reluctant. The law even obliges them to do so. A bank can only grant credit if it is considered “safe”. But before an application is rejected, most providers provide the solution to the problem.
If the personal creditworthiness for the desired car loan is not sufficient for public servants, a surety could help. A second solvent applicant removes concerns. Because, in the event of a problem, he is liable for the loan. Nevertheless, joint liability for a vehicle loan is an all too high risk. After all, the car represents a real asset that could be sold if necessary. In difficult cases, without a second applicant, credit portals offer the opportunity for risk credit.
Directly from the comparison could be applied for personal loan, for example with Agree Bank.
Conclusion – car loan for civil servants
Vehicle buyers are hoping in vain for a particularly discounted car loan for employees in the public sector from the car trade. In many cases, however, it is debt financing that achieves the largest savings volume.
With external financing, conveniently applied for from the loan comparison, large sums can be saved for new vehicles and used vehicles. With new cars, it is the cash payer discount that rings the cash register.
The lower interest rate when used. In addition, the flexibility to accept offers, free trade or private. Direct banks attract with low interest rates and even the exclusive car loan for public employees and civil servants.