The steep rise in fuel prices has surprised many households.
At the pump, there is indeed a rise of 23% in one year for the price of diesel. As for the price of gasoline, it climbed 14% over the same period.
This inflation is largely related to the multiplication of taxes that weigh on the cost of these raw materials.
In the household budget, this situation has heavy impacts. Energy expenditure is difficult to compress because it is essential to ensure our daily trips. In order to remedy this problem, it is advisable to buy a vehicle that tends to be more economical. So, which to choose to change vehicles?
Leasing: a popular mode
While previously an Auto project was always associated with an acquisition, in recent years this is no longer the case. To avoid an excessive outflow of money, some households make the choice of long-term rental (LLD) or lease with option to purchase (LOA).
These modes of have the wind in their sails. They allow consumers to regularly change vehicles. Especially since the maintenance is supported, which avoids exceptional costs that weigh heavily on the family budget.
Nevertheless, before committing to a car rental over time, it is necessary to check its debt capacity. Just like for a loan, this generates a new financial burden to be taken into account in the family budget.
The scrapping bonus to reduce the cost of the car!
Investing in a new vehicle without breaking the bank is also possible thanks to scrappage premiums and conversion premiums. These are more and more incentives for drivers.
It is the will of the government to promote a fleet polluting less polluting in France. A priori the amounts of the premiums that will be paid in 2019 will increase sharply.
Auto loan: how to choose the best deal?
Current conditions remain favorable for the purchase of a vehicle with on credit. In fact, interest rates on loans remain exceptionally low. However, offers of consumer credit abound and seem all attractive. Each proposal should be compared to select the most interesting offer.
Beyond the interest rate, it is the overall cost of the loan that must be compared. The Annual Effective Rate (APR) gives an idea of the cost price. Moreover, do not hesitate to negotiate the additional costs. This is particularly the case for administrative fees, which represent on average 1% of the envelope. For example, for an Auto loan of € 20,000, the borrower will have to pay the sum of € 200 included in the plan.
In reality, financial organizations are often willing to reduce these fees in half. Be aware that banks regularly make “flash” offers at new rates. It is therefore worth keeping an eye for the ideal financial solution.
For households with insufficient debt capacity, there are solutions for investing in a new vehicle. The purchase of credits at the best rate with cash is then a boon not to be missed. It gives the opportunity to reduce its debt while enjoying a new cash that can be used to change cars.