Car Loans for Expats in Germany

Yes, expats with valid residence permits, German bank accounts, and proof of income can get car loans in Germany. Banks offer both earmarked car loans (Autokredit) with lower interest rates and general-purpose loans that can be used for vehicle purchases.

Autokredit (car loan) is earmarked for vehicle purchase, often with lower interest rates because the car serves as collateral. Regular personal loans offer flexibility to use funds for any purpose but may have slightly higher rates. Car loans may require the vehicle documents to be held by the bank.

Required documents include: valid ID and residence permit, proof of income (payslips), German bank account details, the vehicle purchase contract or dealer quote, and possibly proof of German address (Anmeldung). Some banks require the car to be purchased from a German dealer.

It's challenging but possible. Newcomers without Schufa history may need to provide additional income documentation or consider dealer financing options. Some dealers work with financing partners who have more flexible criteria for expats.

Dealer financing is convenient but not always cheaper. Banks often offer better interest rates. However, dealers may have special promotions (0% financing) for specific models. Always compare the effective annual interest rate (effektiver Jahreszins) between options.

Car loan interest rates in Germany typically range from 1.99% to 7.99% APR for new cars, and 3.99% to 9.99% for used cars. Expats with good income and credit history can access rates similar to German citizens. Earmarked car loans generally have lower rates than personal loans.