Loans and financing to buy a car

49 posts in this topic

Who is the owner depends on the type of loan.  

 

If it is an unsecured loan (personal loan) then car is not used as collateral against the loan but the loan is based more on your credit worthiness.  So you can then do what you want with the car and the bank/finance company only care about the monthly repayments.  

If it is a secured loan then the car remaining the property of the bank/finance company until you have fully repaid the loan.

 

So you need to look into the type of loan to determine this fully and the small print to be sure about all of the answers. 

 

Normally where a car can be driven is a matter for the insurance and not for the bank/finance company.  Assuming that you are just visiting and not moving or exporting the car before it is fully paid.

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Hi all. I'm looking for some advice. I moved here in July 2016 and signed a 4-year contract where I paid a €4,000 deposit for a car (1 year old VW golf) and make monthly payments of around €200. I also pay insurance in the event that I am not working.

 

My personal circumstances have changed and I plan on leaving Germany within a 3-5 month time period. What are my options with the car? 

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1 hour ago, justere said:

Hi all. I'm looking for some advice. I moved here in July 2016 and signed a 4-year contract where I paid a €4,000 deposit for a car (1 year old VW golf) and make monthly payments of around €200. I also pay insurance in the event that I am not working.

 

My personal circumstances have changed and I plan on leaving Germany within a 3-5 month time period. What are my options with the car? 

You need to check your contract and see what the T&C are for early cancellation. Then talk with the  dealer and insurance company..

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Did you ever get a response on this topic ? 

I could use your experience, I want to understand if I am allowed to simply continue paying my loan from abroad.

I will not relocate for at least another 6 months, but I want to be ready.

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On 16/06/2017, 14:03:58, justere said:

Hi all. I'm looking for some advice. I moved here in July 2016 and signed a 4-year contract where I paid a €4,000 deposit for a car (1 year old VW golf) and make monthly payments of around €200. I also pay insurance in the event that I am not working.

 

My personal circumstances have changed and I plan on leaving Germany within a 3-5 month time period. What are my options with the car? 

I meant about this of course...

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46 minutes ago, MrQbit said:

Did you ever get a response on this topic ? 

I could use your experience, I want to understand if I am allowed to simply continue paying my loan from abroad.

I will not relocate for at least another 6 months, but I want to be ready.

 

Welcome to Toytown (TT) MrQbit

 

FYI if you put your mouse over a TT users name or avatar a popup box appears which shows when they joined, how many posts they made, when they last visited, a message link and a link to their post content.

 

@justere last logged in on 30 July 2018 so, unless they set up their profile to get notification via e-mail, may not see your question.

 

As @RedMidge said, it would depend on the T&Cs of the car finance contract what the options were.

 

Looking now at the age of the car, deposit paid and monthly payment figures and period of contract it would appear to have been a lease contract.

 

Even after making the full 48 payments I would imagine there would have been a balance of around 8000 € open depending on the cars estimated value at its turn-in timepoint.

 

As a former car dealer my first question would have been whether it were possible to move the car out of Germany at all, since cancelling such contracts before the bulk of the contracted payments are made tends to involve a disproportionately high loss.

 

If you want some educated guesses as to what options may be open to you then you will need to tell us a bit more detail than @justere did anyway.

 

2B

 

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On 14.4.2010, 13:43:28, ukpunk1 said:

 

Good taste in automobile. I did the same thing at the VW bank with no hassles.

Err.. noo, in Germany, Audi is the Assholes brand.

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On 12/20/2018, 10:36:37, MrQbit said:

I meant about this of course...

 

Hi - turns out I am still in Germany! I contacted the VW dealership where I bought the car and they were very helpful. I can actually sell the car whenever I want and pay off the credit. I was very surprised as back home I don't think it's legal to sell a financed car. 

 

Anyway - sorry about the delay! 

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Sorry to resurrect an old thread. 

If I want to order a new car with 2-4months waiting time. Do you think I should start looking for finance approval before or when the car is at the dealer? Because in 4 months time I will have more money to deposit, compared to as early as possible.

 

Also should I check with a Bank or VW group finance? I don't know which one offers better rate. 

 

background note: I've been in Germany since the 2018 as an international student(did some student part-time), now I'm a fulltime employee waiting for my 4years bluecard

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