Buying a car in Germany can be exciting, but finding the best car loan interest rates in Germany 2025 is essential to save money. Whether you are a local resident or a foreigner, choosing the right car loan with a low interest rate will help you manage your finances better.
This guide will cover everything you need to know about car loans in Germany, including the best banks for car loans, interest rates for foreigners, and how to get the lowest rates.
What is a Car Loan?
A car loan is a type of loan that helps you purchase a new or used vehicle. Instead of paying the full price upfront, you can borrow money from a bank or lender and repay it in monthly installments.
Car loans in Germany usually have fixed interest rates, meaning your monthly payment remains the same throughout the loan term. The loan period typically ranges from 12 months to 84 months (1–7 years).
Why Should You Compare Car Loan Interest Rates?
Comparing car loan interest rates is important because:
- Lower rates save money – A low interest rate means lower monthly payments.
- Better repayment terms – You can choose flexible payment options.
- Avoid hidden fees – Some loans have high processing fees.
- More financial freedom – Paying less interest allows you to save for other expenses.
If you’re looking for the best car loan interest rates in Germany 2025, checking multiple lenders before applying is the key to getting the best deal.
Best Car Loan Interest Rates in Germany 2025
Here are some of the best banks and lenders offering low-interest car loans in Germany in 2025:
| Bank/Lender | Interest Rate (APR) | Loan Term | Best For |
|---|---|---|---|
| ING Germany | 2.49% – 4.99% | 12–84 months | Low-interest rates |
| Deutsche Bank | 2.99% – 5.50% | 12–72 months | Trusted bank |
| Santander Bank | 3.29% – 6.00% | 12–84 months | Fast approval |
| TARGOBANK | 3.49% – 6.50% | 12–84 months | Flexible loan terms |
| Postbank | 3.99% – 6.75% | 12–72 months | Reliable service |
| DKB Bank | 2.79% – 5.99% | 12–84 months | Online applications |
| Volkswagen Bank | 2.19% – 4.99% | 12–72 months | Best for VW cars |
| BMW Bank | 2.49% – 5.99% | 12–72 months | Best for BMW cars |
Note: Interest rates may vary based on your credit score, loan amount, and repayment term.
Best Car Loan Interest Rates Germany for Foreigners
If you are a foreigner living in Germany, you can still apply for a car loan. However, some banks may have additional requirements.
Requirements for Foreigners to Get a Car Loan in Germany
- Valid residence permit (Aufenthaltserlaubnis)
- Proof of income (salary slips or employment contract)
- German bank account
- Credit history (SCHUFA score)
- Address proof (Meldebescheinigung)
If you are a foreigner and need a car loan, the following banks offer the best car loan interest rates in Germany for foreigners:
| Bank/Lender | Interest Rate (APR) | Loan Term | Eligibility for Foreigners |
|---|---|---|---|
| ING Germany | 2.49% – 4.99% | 12–84 months | Requires SCHUFA score |
| Santander Bank | 3.29% – 6.00% | 12–84 months | Open to expats with work visa |
| TARGOBANK | 3.49% – 6.50% | 12–84 months | Requires work contract |
| DKB Bank | 2.79% – 5.99% | 12–84 months | Good for EU citizens |
| BMW Bank | 2.49% – 5.99% | 12–72 months | Best for foreigners buying BMW |
Tip: If you don’t have a SCHUFA score, some banks may ask for a higher down payment.
How to Get the Best Car Loan Interest Rates in Germany 2025
Follow these tips to secure the lowest car loan interest rates in Germany:
- Check Your Credit Score (SCHUFA) – A higher SCHUFA score means better loan terms.
- Compare Multiple Banks – Don’t settle for the first offer. Check different lenders.
- Choose a Shorter Loan Term – Shorter loan periods usually have lower interest rates.
- Make a Bigger Down Payment – Paying more upfront can reduce interest rates.
- Negotiate with Banks – Some banks may offer lower rates if you negotiate.
Car Loan vs. Car Leasing: Which One is Better?
If you are planning to buy a car in Germany, you may also consider leasing instead of taking a loan. Here’s a quick comparison:
| Factor | Car Loan | Car Leasing |
|---|---|---|
| Ownership | You own the car | You don’t own the car |
| Monthly Cost | Higher | Lower |
| End of Term | Keep the car | Return the car |
| Interest Rates | Fixed | No loan, but fees apply |
If you want to own the car, a car loan is the best option. If you want to switch cars every few years, leasing is better.
Conclusion
Finding the best car loan interest rates in Germany 2025 is crucial for saving money on your car purchase. By comparing different lenders, maintaining a good SCHUFA score, and negotiating with banks, you can secure a low-interest car loan that suits your budget.
If you are a foreigner, make sure to meet the eligibility requirements and consider lenders that offer loans to expats.
Ready to buy your dream car in Germany? Compare car loan rates today and get the best deal!
Frequently Asked Questions (FAQs)
1. Can a foreigner get a car loan in Germany?
Yes, foreigners can get car loans in Germany. However, you must have a residence permit, a German bank account, and a job contract. Some banks may ask for a higher down payment if you don’t have a SCHUFA score.
2. What is the average car loan interest rate in Germany?
The average car loan interest rate in Germany in 2025 ranges between 2.19% and 6.75%, depending on the lender and your credit profile.
3. Which bank offers the lowest car loan interest rate in Germany?
Volkswagen Bank (2.19% APR) and ING Germany (2.49% APR) offer some of the lowest car loan interest rates in Germany in 2025.
4. How long does it take to get a car loan in Germany?
Most car loans in Germany are approved within 1–3 business days, but some online banks provide same-day approval.
5. Can I get a car loan in Germany without a SCHUFA score?
Yes, some banks provide loans without a SCHUFA score, but they may charge a higher interest rate or require a larger down payment.