Financing

Car financing can make your dream of owning a new car or a stylish used one come true. This earmarked loan is offered through the dealer, but also directly by banks and insurance companies. The vehicle registration document serves as security. This remains the property of the lender until the loan is fully repaid.

There are different ways to finance a car:

• With traditional financing, the buyer pays a consistent monthly installment until the loan is fully repaid. Depending on the purchase price and term, the rate can be correspondingly high.
• Balloon financing provides for a lower monthly burden. Customers repay a small amount, but at the end of the term they have to make a high final payment on the outstanding balance.
• Three-way financing offers more flexibility. This is similar to balloon financing, but borrowers have three options at the end of the term: They can pay the final installment and use it to buy the car, or they can opt for follow-up financing and pay off the remaining debt. You can also return the car to the dealer like you would with a leasing contract.

Corporate financing is aimed at entrepreneurs and the self-employed. Banks and insurance companies provide funds for a company’s investments. This can be start-up capital for starting a company, but also investments in machines, buildings, vehicles, operating equipment, etc.

Corporate financing is aimed at entrepreneurs and the self-employed. Banks and insurance companies provide funds for a company’s investments. This can be start-up capital for starting a company, but also investments in machines, buildings, vehicles, operating equipment, etc.

The state provides funding for various areas. These can be low-interest loans or direct grants. There are grants for entrepreneurs and founders. But also for (future) homeowners who want to build or renovate their property to make it more energy-efficient, burglar-proof or age-appropriate. And for students who need financial support during their studies.

Funding is awarded by state institutions such as the KfW Bank, by the federal and state governments as well as the ministries. In this way, various areas in Germany are to be supported. Sometimes education, expanding the economy and securing jobs as well as creating living space.

Subsidized financing offers financial advantages. In particular, the low-interest loans granted by the Kreditanstalt für Wiederaufbau. However, applicants must meet requirements. For example, they have to build their house according to certain KfW standards. Or pursue defined goals as a company founder and make eligible investments. As a result, the requirements for funding approval can in turn cause additional costs. It is therefore always important to check individually whether financing with funding is actually worthwhile.