You have found the car of your dreams but you do not know how to finance it? Four possibilities are available to you. The Credither guide comes back to each of them. In any case, whatever your choice, make sure that your debt ratio does not explode.
Automotive expenditure is the 2nd item of expenditure of households, so that your purchase is not to be taken lightly. In your estimates, you must also include insurance, maintenance or gasoline costs.
Ask your bank directly
This is the most logical solution, especially since your bank knows you. She will therefore be more receptive to your loan application.
Call a credit agency
Lending institutions specialize in consumer credit, including auto loans. Subscription conditions are fast and promotional rates can be offered.
Go through a broker
With a broker, no need to knock on the door of several banks or consumer loan organizations. This intermediary between the lenders and the borrowers takes care of everything: he is in direct contact with the lending institutions and compares the car loans.
By putting these organizations in competition, the broker / comparator provides its clients with attractive financial terms. He also advises them on the choice of the best proposal.
Sign a car loan at the dealership
Quick solution: car dealers – in addition to selling vehicles – offer adapted financing. Nevertheless, think about comparing auto loan offers to be sure to have the best auto credit terms.
Auto credit types
There is not one, but several auto credits. In fact, what lenders call ” auto credit Is actually a personal loan or an assigned credit.
The personal loan is a financing without the borrower having to justify his request. In other words, the loan and the good (here, the car) are not related. But whatever happens, you will have to pay back your loan, even if the vehicle is defective or has not been delivered.
Conversely, the credit allocated is “tied” directly to the financed property. This is the case for example loans offered by car dealers. This implies that the request for financing must be justified to the lender. It also means that you only start repaying your loan after receiving the vehicle. And if it has a defect, you do not pay any monthly payments.
In the “category” of auto loans, you can also add the rental option (LOA). This solution makes it possible to rent a vehicle (or any other good), then to return it or to buy it definitively.