Whether a car loan is possible despite debts or has to be rejected cannot be answered clearly. This depends on various factors. This includes not only the question of how high the debt is, but also whether it has already been included in the Credit Bureau information. In the latter case, it will only be possible under difficult conditions to obtain a car loan despite debts from a German bank or savings bank.
Requirements for a car loan
In principle, anyone who wants to get a car loan would have to provide positive Credit Bureau information and a regular income. However, there are certain exceptions, particularly for car loans. As a rule, lending is not handled as strictly as is the case with a normal installment or consumer loan.
By car there is a concrete value for the loan, which can also be attached if necessary. For this reason, many people who have minor negative entries at Credit Bureau or are self-employed or self-employed can get a car loan without any major problems.
Car loan despite existing debt
A car loan in spite of debt would also have to be said if the borrower overdrawn the checking account or has not yet paid some important bills. However, in most cases, these are small amounts of debt that are not related to the amount of money needed to get a car loan and buy a car.
If there is already another installment or consumer loan, the car loan is usually approved if the loan installments have been properly paid up to now and there have been no other serious problems.
Application and approval
If you are interested in a car loan, you should first make a binding decision as to whether you want to take out a loan from the bank or from the dealership. Both variants have both advantages and disadvantages. With a bank loan, it should play a role above all that the customer has the opportunity to act as a cash payer at his car dealer, which often gives him substantial discounts on the purchase price. If the loan is taken out in the dealership, the purchase and credit formalities can be settled together.
This saves the borrower unnecessary routes between the bank and the dealership. In addition, the annual percentage rate is often significantly cheaper than with a car loan from the bank. If you take out a car loan despite your debts, you should also be aware that you not only have to pay the installments for the car loan, but also your other debts. Under no circumstances may this overwhelm the borrower financially.