Wishes can be fulfilled quickly with a loan. Banks lend their money and companies deliver goods in installments. If everything is paid properly and on time, there are no problems. But if the installments fail to appear, a dunning procedure follows, which can end in a garnishment of wages.
What does garnishment mean?
If there is a garnishment of wages, the employer of the person concerned must transfer the legally attachable part of the wages to the creditor. The amount depends on the net income and the number of children. The ZPO (Code of Civil Procedure) provides an exact attachment table. This fact is reported to the Credit Bureau and no bank grants a loan to the person concerned. But if the car breaks down, is there a car loan despite the garnishment?
Definitely no. A car loan despite attachment of wages is simply impossible. No bank would take such a risk, especially since the seizure of wages is reported to Credit Bureau. As hard as it may sound, the debtor either has to do without a car or a friend or relative has to take out a loan instead.
The cost of a car
Nobody who has a garnishment can afford the high costs of a car. Gasoline alone costs a lot of money a month. Added to this are the costs for insurance, tax and any repairs that may be required. With a garnishment of wages, there is only the subsistence minimum and maintenance of a car can hardly be denied.
Credit from friends or relatives
The only way is that the debtor borrows money from friends or relatives for the car and only starts repaying when the garnishment has ended. You should also know that a garnishment of wages is reported to Credit Bureau and can still be seen for another three years after completion. During this time it will be difficult to get a car loan despite the garnishment.
Car loan abroad despite garnishment of wages
The so-called Swiss loan is known. The advantage of this is that the banks do not query Credit Bureau. However, a garnishment of wages is on the pay slip that the employers issue monthly. Swiss banks require exactly this as proof of income. In the event of a garnishment of wages, the banks in Switzerland also refuse a car loan despite the garnishment of wages.