Guide · Finance

Car finance.Clearly explained.

Deposit, term, APR, final balloon payment: if you know the terms, you can compare offers and choose the right finance.

Deposit	The amount you pay yourself at the start, in cash or by part-exchanging your current vehicle. It reduces the loan amount and therefore the instalment and the interest.
Term	The period over which you repay the loan. A longer term means smaller instalments, but usually higher total costs.
Annual percentage rate (APR)	The most important figure for comparison. In addition to the borrowing rate, it includes other costs of the loan and must be stated with every offer.
Total amount payable	Everything you pay over the term, including interest. It shows what the finance costs overall.
Standard instalment loan	Equal monthly instalments over the entire term. At the end, the vehicle is yours, with no remaining balance.
Final payment (balloon)	Lower monthly instalments, but a larger payment at the end. You can pay it, refinance it or, depending on the contract, settle it in another way.
Creditworthiness	Your credit rating. The bank checks it before approval, usually based on your income and credit reports such as SCHUFA.

Our tip

First consider which monthly instalment fits your budget in the long term, and add insurance, vehicle tax and maintenance. Always compare offers by the APR and the total amount payable, not just by the instalment.

At VK Automobile, we arrange finance with our partner banks directly when you buy your vehicle. Go to finance

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