The acquisition of a motor vehicle is one of the great classics of consumption. However, since its purchase requires the mobilization of several thousand dollars, many drivers wish to finance it with a credit to spread its payment over time. Given the many offers on the market, here is what you need to know before making your choice to benefit from the best rate.
The different types of credit available
Among the many consumer credit formulas, some are particularly suitable for the acquisition of a motor vehicle. For some time now, financing formulas like Long Term Rental (LDD) or Rental with Option to Purchase (LOA) have been on the rise, but these are not strictly speaking credits. These are rental contracts with the possibility of acquiring the vehicle at its conclusion (for LOA only). In terms of pure credit, that is to say borrowing a sum of money to buy a car and to repay each month, we find the personal loan and the affected credit.
Option 1: personal loan
The personal loan allows you to borrow a certain amount of money without having to specify what it will be used for. Very flexible, it is the very type of consumer credit. In terms of cars, it is generally used when buying a used vehicle from an individual. But the loan being independent of the object purchased, if, for one reason or another, the purchase is not made, you will still have to repay your credit.
Option 2: affected credit
The assigned credit is, as its name suggests, exclusively dedicated to the purchase of a specific product. Therefore, it benefits from special conditions. In the case of an automobile, if the car is not delivered or does not comply, the sale is canceled and you have nothing to reimburse. Conversely, after agreement with the seller, if you cannot find a lender, the sales contract becomes null and void. Finally, you only start reimbursing after receipt of the vehicle.
Where to take out a car loan?
In terms of auto credit, many organizations each offer more or less attractive formulas. As it is a consumer credit, your bank will undoubtedly be your first point of contact.
Car dealers have the advantage of allowing you to negotiate at the same time the purchase price of your vehicle and the conditions for obtaining a credit, because all have financial subsidiaries.
We can also cite online banks which are starting to offer car loans, as well as large surfaces which often present very aggressive offers, but which must be analyzed in detail.
Comparator and online simulation tool: essential to find the best car loan
Free and without obligation, these two online tools are also very easy to use. You just have to fill in a form asking among other things the amount of the car, its type (new or used) as well as the amount of the monthly payments desired, then to validate it to obtain one or more offers. Comparator and simulation tool complement each other perfectly. Why? Quite simply because a comparator will group together only certain offers (generally, those of partner banks). Hence the importance of multiplying simulations in parallel. This is how you will find the best offer at the best price.