If you are a new driver’s license holder, you want to own your own car as soon as possible. The wish is understandable, but very few can afford one, because there is simply no financial means for the purchase. If the parents or grandparents cannot step in, a loan for the first car must be taken out.
First car loan
A loan can be taken out to finance his first car. However, an important prerequisite is that the loan seeker has a permanent job and that the salary is also sufficient for the repayment. Many 18-year-olds are still in training or are students who will have a hard time accepting a loan.
Depending on the purchase price, the use of the overdraft facility on the checking account would be an alternative to a loan for the first car, as this can be used without prior consultation with the bank’s adviser. However, interest rates are very high and mostly in the double-digit range. You should not wait too long to clear your checking account, otherwise it will be expensive.
If you want to take out a loan for your first car, you are not tied to your bank. There are many attractive offers through the numerous online banks represented. Many of these financial institutions operate exclusively on the Internet and do not have their own branch network. You save the high personnel and space costs and can pass this saving on to your customers. That is why they can offer loans and loans with lower interest rates than the banks that have built up a large branch network. A look at these offers is already worthwhile.
Credit card financing
In addition to the online offers, there is another way to finance your first car. If you are 18 years old, you may already have a credit card with a corresponding limit. In most cases, credit card holders can choose to repay their purchases in one amount or in small monthly installments.
If you have a corresponding credit card with such an installment payment agreement, you can pay for the car when you buy it and thus get a loan without having to talk to a bank advisor beforehand.