Few can afford to pay for the dream car without financial support from a bank. In addition, the financing also offers some advantages over cash purchases. In comparison house bank vs. Autobank can often convince the latter with particularly good conditions. These should continue to exist this year.
The spokesman for AKA, the “Working Group of Banks and Leasing Companies in the Automotive Industry” emphasized in a conversation with the “Welt” that interest rates for car loans should remain cheap. AKA owns eleven car banks that represent the interests of 31 car brands. In addition, the car finance market is fiercely competitive, and car banks have to share their customers with house banks and direct banks on the Internet.
Another factor that speaks for favorable interest rates is the decline in new registrations. Most recently, the Federal Motor Transport Authority (KBA) recorded a 17 percent decrease in newly registered cars, which corresponds to 281,000 cars that were less registered between March 2012 and March 2013. This trend is likely to continue. Recently, car banks have been able to increase their sales steadily in recent years, more and more people are financing their dream car with the help of a car bank. For example, sales from financing new cars rose to $ 30.8 billion in 2012, an increase of four percent.
In used cars, car banks even increased by ten percent. In order to further drive this positive development, the car banks want to orientate themselves even more in the area of financial investments. Continuously good interest rates, such as those offered by Renault Bank for overnight deposits, make a decisive contribution to customer loyalty.
Car banks support buying a car
The latest test by the experts at “Astro Finance clearly showed that many test banks make a better offer than the house bank when making test purchases. Since automobile companies are interested in constantly winning new customers for their latest car models, different criteria apply when lending than with the classic bank. The latter is usually more interested in the creditworthiness, how high is the risk of a repayment default? Auto banks, on the other hand, value customer loyalty and potential higher. If the cooperation went well, a buyer can also receive a financing offer with a negative credit bureau entry. In addition, there are always discounts for special models to make them particularly attractive. Buyers who trade in their car can take advantage of additional interest rates.