This means you get more car for the same monthly payment

Little tricks are quickly explained

More cars for the same money: Here’s how it works

Worth comparing: If you compare and choose wisely when it comes to car loans, you will get a much more expensive car for the same monthly payment. And avoid expensive risks later.

Switching from the small car segment to the compact class – without paying a penny more: it’s very easy. A car loan with a low interest rate can save drivers several thousand euros or allow them to purchase a much more expensive vehicle with the same monthly payments. These are the results of a recent analysis by comparison portal Verivox.

Some banks offer car loans with an interest rate of 4.99 percent. According to the Bundesbank, the average loan installment is 8.26 percent. These differences have a strong influence:

With monthly payments of 300 euros and a term of seven years, a cheaper interest rate allows a loan of 21,311 euros. On average the interest rate would only be 19,271 euros, which is more than 2,000 euros less.

With higher monthly rates, the gap continues to grow:

Oliver Maier, Managing Director of Verivox Finanzvergleich GmbH, explains: “If you pay attention to low interest rates when taking out a loan, you can finance a higher quality car with the same budget.”

The tip: When comparing, set a “car buying” goal. The vehicle serves as collateral, which is why many banks provide car loans with better conditions.

According to Verivox, car loans are on average 21 percent cheaper than typical installment loans.

Car dealers and banks often advertise this form of financing. They lure you in with low monthly payments, but leave the high end payment open at the end. This often has to be resolved by returning or selling the car.

The problem: If the residual value is lower than expected – for example due to damage or high mileage – the customer has to pay extra.

“Car buyers should not be blinded by low monthly payments,” warns Maier. If you pay off your vehicle in full during that time period, you minimize risk and keep costs under control.

Overall interest rates are also increasing. This shows an example:

The analysis shows: If you compare offers and consciously choose the form of financing, you can save a lot – and drive a more expensive car without paying more each month.