The car market ranks second, after real estate, in terms of family spending. A car loan is essential when buying a new or used car. And for the case of new, there are many means of financing. Some advice to better understand the diversity of insurance contracts available.
Easily accessible on the Internet, by a search engine, comparative sites promote the search for a cheap offer appropriate to your needs and budget, by their quality and the speed of information they provide. In general, the comparators of banks and credit organizations are practically limited to the advertising of their offers without really addressing the case of competition.
It is therefore advisable to choose an independent comparator in order to obtain the cheapest car loan, as well as relevant information which can then allow you to obtain a free quote according to your specific needs.
Thus, generalist sites allow researchers to compare and sort advantageous or promotional offers periodically, by asking the interested party to mention the amount, the duration of the credit, the year and the type of vehicle etc …, so that it- he can find the cheap car loan that covers it in the best possible way in the event of a disaster.
Auto loan: is consumer credit practical?
For the purchase of a car, each borrower can opt for a credit dedicated only to the purchase of a vehicle, or choose from conventional credits, of the consumption type. For this the question: “what credit can we choose? Is very important.
Choosing one or the other depends first of all on the interest rate offered by the bank. With the conventional loan option, the borrower becomes aware of the cost of acquiring his vehicle (rate, amount of monthly payments and repayment period), upon signing the credit contract. On the other hand, auto credit has the advantage of only being granted from the reception of the vehicle, in the event of a defect or defect concerning the car, the affected credit is canceled by retroactivity, as well as the sale relating to this credit .
The importance of the zero rate in the case of a car loan
Opex Cars INC, Pord Cars and Seatlite are the only brands that presented the zero rate offer, after the lifting of the ban on announcing this kind of zero rate, by legal decision. This kind of proposal may seem advantageous and allow you to take out a cheap car loan, but be careful, because many are those who do not know that this rate of 0% is nominal only, that is to say that it is not real. Indeed, in view of the application fees and the real rate which can sometimes exceed conventional rates, we must be wary of this kind of offer put in place by manufacturers as part of their Marketing policy.
Negotiate your credit and the price of your car
Interest rates rose sharply by 0.5%, despite the approximately 3 points lost between 2002 and 2005. Consequently, car loans represent a heavy financial burden for families, after real estate. Faced with this situation, you have to consult the offers of at least three banking organizations, minimize the interest rate (negotiable, by playing competition as a means of pressure) and negotiate the duration of your loan. Without forgetting to also negotiate, the price with these car dealers.
Car loan: make a personal contribution
In general, establishments allow full financing of the amount of the car. On the other hand, it is preferable that the borrower has a personal contribution of 10 or 20% of the purchase amount, in order to obtain a better interest rate and a fairly short repayment period.