A car is the favorite child of the Germans, reports a saying that is almost as old as the vehicle itself. In fact, you rarely find people in the Federal Republic without their vehicle: it brings you to work, is work equipment, drives the children to school, helps with shopping or carries the family to the holiday destination. But very few Germans can pay for a car just like that. For this, financing from a bank is essential for many people. It is often a car loan with a guarantor.
When is a car loan with a guarantor even necessary?
A guarantor is something like the last lifeline for all those people who otherwise do not know how to convince a financial institution to grant a loan. Decisive for getting a loan at all are the Credit Bureau entry, salary, old debts and other collateral as well as the question of whether the loan serves to fundamentally improve the economic situation of the borrower. For example, if you want a car loan with a guarantor or without, because you can get a job by purchasing a vehicle and can also prove this at the bank, it will be much easier to get a loan.
But in fact the fact that a guarantor is needed means that the relevant lending criteria are not enough to convince a financial institution to grant a loan. A guarantor usually wipes away these concerns if he fulfills the necessary requirements. Put simply, he would have to get the loan without any problems, i.e. he would have to have the necessary economic options to repay the loan himself if the borrower failed to repay the loan.
In addition, it is important (although not mandatory) that the bank knows the guarantor. As soon as there is a growing relationship of trust between the financial institution and the guarantor, which stems from the fact that the bank looks after itself as a customer, this helps immensely with a car loan with a guarantor.
The reverse: is there also a car loan without guarantor?
But what should you do if you cannot convince the bank of a loan and have no guarantor at hand to influence this decision of the financial institution again in your own favor? Ultimately, there are two options for this situation: Either you try your luck with a loan from a private individual or you go abroad and try to get a loan from a bank there that results in a loan without Credit Bureau, i.e. not previous old debts in of the Federal Republic, which in all likelihood have resulted in the failure to get a loan from a traditional bank.
Foreign banks in Germany are usually found in the form of internet banks. This means that they only operate in the vastness of the World Wide Web and do not maintain their own branch network in the Federal Republic. The money saved in this way flows into particularly good loan offers.