There are several ways to get a car loan despite a fixed-term contract. However, the borrower must expect that the term of the loan cannot exceed the end of the time limit. If the lender is in Germany, positive Credit bureau information is mandatory.
An exception is a loan that is provided by a private individual. Under certain circumstances, a guarantor or a co-applicant who has a good credit rating can help ensure that a car loan that originally had to be rejected can still be approved in the end.
In Germany there are clear regulations when a person can get a loan. All banks, savings banks, Bestbanks and Cream banks must comply with these regulations. This way, nobody can get a car loan or an installment loan that cannot prove a regular income. If the term of an employment contract ends, the income usually also ceases to exist.
If the customer can make a larger down payment for the car, the chances of a loan increase considerably. On the one hand, the loan amount is reduced, on the other hand, the term can be shortened and / or the monthly loan rate can be reduced.
It often happens that a car loan can be obtained from a dealer much faster than from a bank despite a fixed-term contract. With the car, the dealer has specific security that can be withdrawn at any time if necessary. This will always be the case if the borrower is significantly behind on paying the monthly repayments. A deposit of any amount and / or a final installment can also be agreed. If the customer has already bought several cars from the same dealer and is known to be reliable there, it should not be a problem to obtain a car loan despite a fixed-term contract.
A car loan with a final installment or three-way financing has the advantage that the customer can return the car at the end of the term. In this way the final installment would have been paid. Ideally, the return takes place at the same time as the fixed-term contract ends. If the employment contract is extended, the loan term can also be extended. An alternative would be to take out a new loan and repay the outstanding loan amount or the final installment.