No bank or savings bank will grant a Hartz 4 car loan. The same applies to the car banks that have their direct seat in the car dealership where customers can buy a new or used car. The main reason is the lack of income. an elucidation on profaccred.com
For this reason, all statements by private credit intermediaries, according to which it is supposedly possible to obtain a car loan for Hartz 4 without any problems, should be viewed with extreme skepticism. If at all, there is only a realistic chance of a car loan for Hartz 4 recipients if those concerned turn to their local job center with their request.
Auto loans from the job center
The Hartz 4 recipients receive so little money that it is just enough to pay the rent and make a modest living. In addition, the legislator expressly prohibits the current Hartz 4 service from being used to pay any credit installments. This applies even if the Hartz 4 recipient does a part-time job or has to top up his monthly wages or salary with Hartz 4.
If a Hartz 4 receiver incurs larger expenses, which can also include a car, this often presents him with considerable problems. For this reason, the legislature has created the possibility to apply for an interest-free loan, which is expressly earmarked for the job center. If the Hartz 4 recipient wants to buy a car, he must give detailed reasons for this issue to his job center. Otherwise, he has no chance of getting a car loan for Hartz 4 recipients.
In addition, the total loan amount will be minimal and will not be enough for a new car, but only for a used car. An important reason why the job center can support the purchase of a new car would always be if the Hartz 4 recipient urgently needed it to find a new job or to expand his previous job.
Proper use of the amount of money received must be able to be demonstrated to the job center. The repayment can then begin, which must be made directly to the job center. The amount of the monthly installments and the term are individually agreed. The same applies to the question of whether the repayment amount should be retained from the current Hartz 4 service or transferred separately.