Hire-Purchase, Leasing, Loans
When buying more expensive items such as furniture or cars, hire-purchase ("Ratenzahlung") is often possible. This means that payments have to be made monthly over a certain period of time. "Leasing" is similar to hire-purchase. At the start of the leasing contract a larger payment is made, followed by monthly payments. If you want to keep the product at the end of the leasing contract a further large payment is necessary. Hire-purchase and leasing are more expensive than payment in full.
Banks and savings banks ("Sparkassen") also offer loans in many cases. There are various offers available at varying rates of interest. Information on the best offers available can be acquired at consumer advice centres called "Verbraucherzentralen" (see chapter 
Consumer Advice).
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