In the credit world, there are many different loan offerings that are almost perfectly tailored to the financial needs of borrowers. A common type of loan is the credit with final installment, which is very popular.
But this term has not really stuck with people, because this type of loan is offered with many other formulations. Just read, where he is very common.
Think of the automobile advertising! Lately, you can often find billboards, leaflets or leaflets advertising a car for a sensationally low monthly rate. Your dream car without or with little down payment is possible through the loan with final installment.
When applying for a loan and calculating the monthly installments, the loan works just like the classic loan with a residual value of zero. The essential difference of this loan, however, is its philosophy.
The calculation method assumes that lower monthly burdens lower the inhibition threshold for buying a new car or a high-quality consumer item.
During the 24, 36 or 48-month repayment, the borrower saves an amount elsewhere, and at the end of the repayment period repays the balance at once. This variant is also very popular when the loan with the final installment is a 0% or discounted special financing. Then the borrower actually lends his own money!
Because he could get along without credit, the amount but profitable to several porcelain and then repays the final installment. If you choose such a construction, then you are a real interest and Geldfuchs.
The credit with final installment does not have real disadvantages. It is calculated and paid in the same way as any other consumer credit. But the only tip of the editor would be that you as a borrower to clarify the real cost of the car and not think with the 199 USD monthly rate, the car would pay off without further action virtually by itself. If you think about it, there are only advantages to this type of loan.
The loan is therefore very popular with traders and companies due to its construction method and especially low monthly installments.
Equity is spared and the repayment of large amounts of shares can be postponed to the maturity date of the loan. If you pay close attention, then you will find this type of loan almost every car dealer as one of the many financing options.