If you need a new vehicle, you cannot usually finance it out of your own pocket, but have to rely on outside help. Banks are usually the first port of call on this question, since they all offer special financing offers. It is of central importance, however, that it is a car loan with fixed interest rates. It is important not to fall for the game with words that is operated in some places.
Like any other loan, the car loan also has interest. This means the bank gets back more money than it borrowed. Interest rates on certain loans may vary during the term of the loan due to various complicated reasons, most of which have their origins in the relationship between the bank and the central bank. Some financial institutions also raise interest rates in cases where an installment was paid late.
Such behavior is only permitted to a certain extent in the Federal Republic of Germany. However, if you stick to a foreign bank, you can easily fall into this trap. A fixed-rate car loan is a loan that eliminates such problems by providing a fixed rate guarantee for the entire term of the contract. The fixed interest rate guarantee, however, relates to the fixed borrowing rate and not to the effective annual interest rate, which can fluctuate due to its calculation basis.
The problem that many people have with a fixed-rate car loan is determining whether there is a fixed interest rate for all loan offers or whether the interest rates can differ depending on the loan amount and term, but are then fixed for the loan agreement. Banks usually provide calculation examples on their internet platforms to give you an impression of the financial burdens that would result from the specific loans.
However, they use numbers that make their own offer look particularly good. It is important not to fall for it and instead to use the loan calculator, which is usually also provided, to prevent being blinded by figures that are too beautiful.
The positive aspect of a fixed rate car loan is that virtually every bank actually offers it. Here too the rule applies that competition stimulates business. If you have a large selection, you should make the effort to compare different offers extensively, because this can be worth a lot of money. On the websites of independent loan comparison portals on the net you can easily find all the usual offers. The most important details about the respective loan are already given there.
But from there you should only choose the loans that are actually suitable for you, then go to the websites of the corresponding banks and feed the loan calculator there and thus make the comparison. If you want to be absolutely sure, you can also search for various testimonials online for the individual offers.