Car Loan Vehicle Credit –

Car loan without cash contribution – We explain

If you are interested in buying a car but have not saved money for a cash deposit, it can be difficult. Normally, the rules say that a car buyer who takes out loans must pay 20% in cash. So here we will try to tell you about a little if a little different way to buy a car without saving money.



The most common is if you have an old car that you can leave as a replacement. If this is of sufficient value, it may be enough to cover the 20 percent. Ask to get a rating from the car dealer so you have a good idea of ​​what the car is worth. You can also sell it privately if you think you will get more money this way.

Borrow to the cash deposit

Borrow to the cash deposit

If the car loan pays 80% of the car then you can take another loan that covers the remaining 20% ​​of the cost. This then becomes a private loan, which is a loan without collateral. The interest rate on this loan will probably be a little above the car loan, but you can also get the money for the cash contribution.

Mortgage loans

Mortgage loans

If you own a home that is not fully mortgaged, you can take out an additional loan on the property to either pay the entire car or to cover the cash contribution. This is usually the cheapest way to borrow money as mortgages have lower interest rates than all other types of loans.

Borrow to everything


You also have a choice where you take out a private loan to cover the entire cost of the car. This will then be more expensive than a car loan but at the same time you will not have to have any cash contribution at all. Since it is more expensive to borrow in this way, it is best to take a car loan if possible but it does not work, a private loan to cover the entire cost can be an alternative.

The boring alternative


Not buying a car may feel boring, but it’s something to consider if it doesn’t feel right with any other financing method. Maybe you should decide to save as much money as you can for just a while and then have enough money saved to be able to pay the entire cash deposit directly.

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