The car loan is qualified as a consumer credit, and its amount is capped at 75,000 USD. Apart from that its particularity is that it is obligatorily assigned to the purchase of a new or used car.
This is also the case of the work credit or motorcycle loan, the purpose of which is closely linked to the completion of a specific project or the purchase of a particular vehicle. They are also called the assigned credits.
You can also apply for a personal loan in place of auto credit, which does not require you to justify the purpose of the loan. But you will not enjoy the benefits and protection of auto credit, which does not cost more than another conventional credit.
The specifics of auto credit
The great specificity of the new car credit is to insure the borrower against the vagaries of a vehicle purchase depending directly or not on him. In other words, the credit can be canceled if:
- The model of the ordered vehicle is not delivered
- Model has manufacturing defects or does not match what was purchased
- The sale will be canceled if the financial institution refuses to grant credit
In all cases, the borrower will repay the credit only after the receipt of his property. And if there is a cancellation of the sale, the assigned loan will be automatically deleted.
The auto loan also gives you the opportunity to take out a loan directly from the dealer or builder from whom you buy the vehicle.
The dealer builder can offer you credit rates as attractive as in banking and credit institutions. It has a financial service dedicated to credit that can facilitate administrative procedures.
In addition, the advantage of taking a credit at the seller makes possible very interesting business negotiations. You can either negotiate a discount of the purchase price of the vehicle, or obtain additional equipment, or have an extension of the manufacturer’s warranty.
It also happens that according to the periods, the dealers make very advantageous commercial offers. They may offer equipment available only in the premium model of the car category you are buying.
It is therefore profitable to inform you regularly before the dealers before the summer or Christmas, two very important commercial periods for the sale of vehicles. You will surely get benefits on the purchase of your new car.
Get the best credit rate for your new car
Auto credit works the same way as a personal loan or a home loan. You must inform yourself of the credit rates charged at the time of your decision to acquire a vehicle.
For that, you can do a simulation of auto credits on our site, which will compare you the best offers. The presentation of these offers is generally those of insurance companies, credit or banking institutions.
Our comparator rakes broadly to give you a great choice of rates.
You can also contact your bank which can offer you an interesting loan. Knowing that his decision to grant you credit can be made quickly depending on the status of your accounts.
It is also easier to negotiate with her if you are a long-time customer.
One last solution for finding an attractive auto loan is to contact a credit broker directly.
The job of a broker is to look after you to find the best credit offers on the market. It also manages all the administrative aspect and can explain you information that you will not understand. It supports your file from A to Z.
The characteristics of auto credit
Auto credit has the same characteristics as a conventional credit:
- It presents a TEG Global Effective Rate
- It includes compulsory loan insurance, which can be purchased at a financial institution or insurance different from that of the lender, under certain conditions
- It takes into account your personal contribution. Which can reduce the duration of your refund or decrease your monthly payments
In any case, the law of consumption has provided a period of 14 days to retract, if you change your mind.