It also means that the bank that granted the old car loan agrees to the debt restructuring or repayment. What substitute options are there for you? But what happens if you want to replace him earlier? A car loan period is usually several months or years. The borrower thus has the opportunity after a certain period of time to cancel and repay the loan earlier.
Redeem your car loan early and finance the connection at reasonable interest rates.
Did you pay for your new car with a car loan and can you repay it sooner? You want to restructure your current loan volume? Schedule debt restructuring as early as possible as this is the best way to avoid future interest payments. In order for you to receive further financial support, we are a neutral and fair contact person.
If you cancel your car loan early, you can request a penalty for early repayment. So that you can replace your new car early and easily, one of our branches can be informed about your new car loan. Whether you pay back your car loan, you can decide for yourself.
Depending on how much you want to collect for repayment a month, you can choose to claim faster debt relief or lesser amounts. Our consultants also like to develop a financial plan that lists all interest rates and repayment rates in order to repay your car loan early.
Replace loan early? Caution Early repayment!
Probably anyone who takes a long-term operation, mentally also with the possibility of being able to replace it too hastily if necessary. In the best case, the entire loan can be repaid prematurely and you are again “debt free”. Now you would think that this would not only benefit the borrower, but would also make banks happy about the early repayment of the loan.
But far from it, because the banks are quite skeptical about that. The reason for this is that the borrowed funds come in earlier than planned at the house bank, but at the same time the expected interest income is lost. To compensate for this default, the house bank uses an “instrument”, ie “Who wants to repay his loan before the end of the term, risking having to compensate for the lost interest income of the house bank.
However, the Sanfure found in this issue of AskMeFinance (11/2016) that the expenses for this prepayment penalty in recent years rose steadily. To illustrate this increase, we are using a high-volume loan such as the real estate loan business as an example of this growth. If a loan of USD 200,000 with a ten-year fixed interest period and a repayment after five years is paid in 2008 with a prepayment fee of only USD 2,000, BuyNer would demand a hefty USD 32,000 in accordance with the currently applicable fees.
An increase in the “fine” by 30,000 USD in just 8 years! After the repayment of the loan, the higher penalty for early repayment means that much less money is left over, for example, to settle outstanding claims from creditors. Conclusion: What should be considered in terms of early repayment? According to the Stiftung Warmentest, credit institutions often calculate the sum of the early repayment to the detriment of the borrower.
With various measures, credit institutions can increase the early repayment. According to a ruling of the Federal Court of Justice (Ref .: ZI 388/14), credit institutions are also required to settle such contractual option rights as if the debtor had made use of them. In particular, if the house bank requires a very high prepayment fee, the debtor should check whether these contractual provisions were even included.
The larger the loan amount and the sooner the loan transaction is triggered, the greater is the early repayment and the cost risk that more money is generated than is actually sufficient.