In addition to a classic car loan, a car loan with residual value has also been offered for some time. It is particularly characterized by the fact that the monthly loan installments are only low during the term. In the end, there is a residual value that can either be repaid immediately or financed with a new loan. More exposition at http://www.nowwashyourhands.com/2019/12/13/bad-credit-car-loans-okc-research-and-request-a-car-loan-with-bad-credit-rating/
Not so long ago there were only a few providers of car loans with residual value. However, this has now changed fundamentally. For this reason, it is usually very difficult for the layperson, who is not knowledgeable about the subject, to keep an overview and find a car loan that is tailored to their personal needs. A detailed loan comparison should therefore come first. It can be carried out around the clock and not only on weekdays, but also on weekends and public holidays.
Special comparison portals are available on the Internet for a loan comparison, and often even set direct links to the individual providers. The interested customer can apply for his car loan with residual value directly and would not have to go to a bank branch.
Auto, branch and direct banks
A car loan is always earmarked and is offered by almost every Bank. This applies to both a classic car loan and a car loan with a residual value. A bank or savings bank loan would have the advantage that the customer would receive the entire loan amount and could use the money to pay for the new or used car in cash at the dealership. As a result, considerable percentage discounts on the purchase price are often possible. They can well be in the two-digit range. A direct bank that does not have its own branch network can also offer particularly low-interest loans.
If you do not want to take out a bank loan, you could contact the responsible car dealer and ask about suitable financing options. Most car dealers are happy to offer a car loan with a residual value. In this way, customers with a low monthly income can also finance a new or used car.
At the end of the term, you have several payment options. You could settle the residual value in one amount, take out a new car loan or return the car to the dealer. He would then trade it in accordingly, which would settle the residual value of the loan. A car loan with a high residual value also has a crucial disadvantage. For example, significantly higher interest must be paid during the term than is the case with a classic car loan. For this reason, the pros and cons of a car loan with a high residual value should be carefully weighed up.