When buying a vehicle (whether new or even used), it often happens that we do not have sufficient funds for a cash payment.
We must therefore use bank credit to finance this purchase. We will first show you the different types of credits that can be used in this case and then we will discuss the importance of comparing the offer to you.
Finally, we will give you some tips to determine which is the best auto credit for you.
What are the different types of auto credit available to you?
Classic car credit
As its name suggests, this is a credit used exclusively to finance the purchase of a vehicle (car or motorcycle mainly). The advantage of such a solution remains that refunds start only from the reception of the vehicle.
Similarly, in case of non-delivery or defective vehicle, the car loan will be automatically canceled.
Be careful, however, processing times are a little longer than for a more traditional loan and the rate is often higher than for other types of loans.
The personal loan
This is a loan for which you will not have to justify the use of the loan amount. It will therefore allow you to borrow more than the purchase cost of the vehicle.
It is therefore much more flexible than a car loan. However, it will not protect you against a defect on the vehicle and you will then be obliged to repay it entirely.
The balloon credit
This type of credit is more suitable for people who regularly change vehicles. Indeed, it is a partial refund of the value of the vehicle.
In other words, it is possible, as soon as the loan is repaid in its entirety, to definitely buy the vehicle.
Some reminders about credits
In order to obtain more interesting rates and if you have the possibility of course, make a contribution before making your dealings with banks.
Never forget that a credit commits you to the lender! Be careful also to the phenomenon of over-indebtedness, make sure that the monthly payments of all your credits in course never exceed 40% of your incomes.
Why compare auto credit offers?
Auto credit must be considered as a consumer product. Therefore, do not hesitate to compare the offers of different banking institutions.
Especially since they sometimes carry out promotional campaigns on their financial products. For an individual, it is of course impossible to be aware of all the offers available in this particularly active market.
Fortunately, two solutions are available to him to obtain all the necessary information: the broker and online comparators.
How to compare auto credit offers?
Use the services of a broker
A broker accompanies you during all your steps to obtain a credit. Its main added value is when it negotiates with banks the interest rates of your future credit.
He very often gets great results. Of course, his intervention is not free and you will have to pay for his services.
On our site, you will have access to the various offers of the moment to compare all the car loan offers available to you. Indeed, the majority of the banks communicate to them all of their promotions in real time.
This is a free tool that you can use alone at any time of day and night. It also allows you to get a first idea of how much you can borrow.
Its mode of operation is extremely simple. You indicate the amount you want to borrow, you specify some are your income and the site offers several offers related to your criteria.
You will also be able to know what will be the amount of your monthly payments and the total duration of the loan. If any of the proposals made by the site interests you, you will be put in touch with the bank in question.