Car Financing for those who have Bad Credit

Financing usually works either through the house bank or a direct bank. However, the probability of success is greater when financing through a car dealership or car bank . This applies in particular if the borrower decides on a low-sales model or a discontinued model car dealer bad credit that still has to be sold. The loan financing ultimately serves to maximize sales.

Easier conditions often also apply to used cars that have been parked in the car dealership's yard for a long time or in the case of a high down payment of around 30 percent. If that doesn't work because of a poor Schufa score, you can still get a personal loan from friends, acquaintances or relatives.

If you have negative comments in the Schufa database, it is almost impossible to get car finance. However, you can finance the car with a little background knowledge without Schufa.

Do you want to buy a car despite a Schufa entry? This is fundamentally feasible through loans without asking the so-called "protection group for general credit protection". However, it is recommended to ask for personal information first, because you should know your own statement: It often happens that car loans are not allowed at the dealership or the bank because incorrect or outdated data can be found in the list. An up-to-date and correct Schufa information is thus the first way to handle car financing on normal terms.

Anyone who realizes that their own information is negative and that this is not due to incorrect data, but to their own omissions, must consider alternatives to car financing . It also works without Schufa and works like a personal loan: the creditor charges higher loan interest rates for his trust in the borrower than a financial institution would do with a borrower with an impeccable credit rating.

If you are considering this route, you do not even have to search for a creditor yourself: Countless websites help people with negative Schufa information to obtain car finance. In cases where the debtor rating is wrongly negative, the right of car buyers, but sometimes - in positive terms - simply means that people can continue to participate in the economy despite their "lack".