While consumers refer to any loan used to purchase a vehicle as a car loan, financial institutions use the term specifically for a specific product. They describe a loan as a car loan, in which the safety transfer of the financed car serves as additional collateral. As a rule, the vehicle purchaser deposits the Part II registration certificate with the Credither so that it can effectively prevent a resale of the vehicle before the loan is repaid without its approval.
The deposit of the registration document is not required for the effectiveness of the agreement on the assignment of a car loan. As a result of the credit secured by the transfer of ownership of the financed vehicle, consumers assume in part that the bank can grant them a car loan even without a query from credit bureau. However, this is rarely the case, as credit bureau’s credit rating provides the lender with information about the past payment habits of its car loan customer and, in addition, a blanket assessment of the credit risk. The credit bank may use the financed car in case of defaults, but often does not earn the full amount of outstanding credit as revenue.
In addition, the use of a credit-financed vehicle by the bank is associated with costs. When a car loan is processed without a credit bureau query, this does not automatically mean that the borrowing is also not reported to the credit protection. Anyone wishing to handle the loan agreement without credit bureau’s request and without credit bureau’s notification explicitly chooses a car loan without credit bureau, since this does not demand and information about the conclusion of the contract.
Regular customers can obtain that a car loan without credit bureau query is granted if they have already completed several vehicle purchases through the same dealer and the same Autobank. The dealer and the Autobank can waive the credit bureau query in this case, since the measured on the basis of previous payment behavior internal credit rating is more meaningful than a statement of credit protection. Car buyers increase the chances of a car loan without credit bureau query by opting for a model with weak sales figures or for a car or a demonstration car. The fact that a vehicle model sells worse than hoped for by the manufacturer can be seen in many cases from the fact that the Autobank offers special conditions for its financing. In part, the vehicle dealer and the Autobank renounce the request to the credit bureau, if the buyer can pay a large part of the purchase price directly and the financing thus refers only to a part of the vehicle price.
Consumers can basically use the Swiss loan as a car loan without credit bureau query, especially since the indication of the purpose is not required. However, credits borrowed directly from a Swiss financial institution without credit bureau are limited to amounts of $ 3,500 or $ 5,000 respectively, so that they are only suitable for financing a used car. For the purchase of a new car or a demonstration car, a Swiss credit can be used if the customer agrees a high final installment. In this case, the amount to be initially financed is the car price minus the down payment and the final installment. However, if vehicle purchasers opt for this variant of wagon financing, they must be aware that at the end of their term, they will need another loan to pay the final installment, provided that they are unable to benefit from a savings or insurance contract. For those who need a higher amount of money, can apply for a car loan without credit bureau query through an intermediary.
The latter forwards the request not only to Swiss banks but also to financial institutions in other countries. What is important for the customer is that Swiss banks, in contrast to other foreign banks, settle the debt-free car loan in USD. If the intermediary arranges a non-credit bureau car loan from another country and it does not belong to the Eurozone, there is an exchange rate risk due to a foreign currency loan. A reputable credit intermediary car buyers recognize that this vehicle loan without credit bureau query without calculation of pre-paid and a brokerage commission is due only for actual loan payment.
Anyone who has a life insurance policy or a private pension insurance can lend them a loan and in this way take out a car loan via his insurer without a credit bureau query. The credit request for credit protection is unnecessary in this case because the customer is liable with his own payment claims against the insurance company for the repayment of the loan amount.