Car loans in Germany: this city is the most expensive

Auto Loan Atlas 2022: Auto Loans in Germany: This city is the most expensive

Thursday, 03/31/2022, 18:06

Where people earn more, on average they also borrow higher sums to buy a car. With € 20,326, a large southern city is in the lead when it comes to car loans. In a national comparison of loan amounts, a counterpart in the north has the advantage. The Verivox 2022 car loan atlas shows this and more.

In no other major German city is the average loan amount for a car as high as in Munich. This is evidenced by the car loan atlas Verivox 2022. For the study, the comparison portal anonymously assessed approximately 400,000 auto loan applications.

Munich and Karlsruhe lead the city comparison

On average, Monaco borrowers borrow € 20,326 if they want to finance a car. The loan amounts are not that high in any other German capital. And the Bavarian capital is not only at the top in terms of the average loan amount. With an average income of 2,441 euros, the inhabitants of Monaco are also the best earners in the city comparison of Verivox.

In second place among cities with more than 200,000 inhabitants is Karlsruhe with a loan of € 20,227 for car financing, followed by Freiburg and Wiesbaden. Furthermore, the people in these three cities earn above average.

Hamburg has the advantage in a confrontation between federal states

On average, Hamburg borrowers borrow the highest amounts for car financing in a national comparison with € 18,554, followed by Baden-Württemberg (€ 18,219), Bavaria (€ 17,870) and Hesse (€ 17,427).

Here the connection between income and loan amount becomes clear. Because the federal states where people borrow the highest auto loan amounts are also the federal states that earn the most. Oliver Maier, managing director of Verivox Finanzvergleich GmbH, explains: “The loan amount must match the income. If you make good money, you can also afford a higher monthly payment and thus finance a higher car loan. “

The highest car loan demand in Lower Saxony

Verivox calculated the demand for auto loans by comparing the number of auto loans contracted to the number of inhabitants. The result is an index where the value 100 represents the average demand. The results show that consumers in Lower Saxony take out a car loan 20 percent more than the national average (index 120). People from Berlin (index 68), Bavaria and Saxony (index 86 each) finance a vehicle relatively rarely. Demand is also relatively low in the city-states of Bremen (88) and Hamburg (89). “Big cities have a well-developed public transport network. That’s why you don’t need your car here, “comments Oliver Maier.” Because of this, the demand for car financing in German city-states and metropolises tends to be lower than in small towns and the countryside. “

Save on costs with credit comparison

If you want to take out a car loan, you must first compare different financing options. “Anyone who simply takes out the loan at the nearest bank branch almost always pays more interest than necessary,” explains Oliver Maier. Car dealership offers should also be critically examined. Some dealerships offer financing for new and used cars at lower or even interest-free rates. Often, however, this is only a particularly favorable offer at first glance. “The low interest rate is subsidized by the manufacturer or retailer to increase sales. This reduces their chance for further discounts. With a dealer-independent bank loan, buyers pay cash at the car dealership and can often negotiate high discounts. Due to the lower purchase price, total costs are often lower than reseller financing, “explains Oliver Maier.

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