Do you need a new vehicle? Could you finance it without resorting to a cash payment, that is to say in full at the time of the acquisition? Not everyone can afford it. Fortunately, there are other alternatives, more personalized and better suited to your preferences and your personal financial situation.
How to choose the right car financing?
All credit is not always adequate to your situation and to your personal arrangements, it is not required to meet all your needs. So, you must know to be aware of the wide choice of credits available on the market and be able to settle on the one that will be most beneficial to your expectations. Whatever your choice, an investment of this nature is substantial, extends over the long term and occupies a significant position in your budget. You will usually find car dealerships in all the car buying agencies that will present you, as well as the banks, all their services and financing offers. Make a scrupulous comparison between these establishments and opt for one that offers a good interest rate and repayment terms that suit you.
Which auto financing to choose?
There are several possible formulas for your auto financing:
The classic personal loan
Whether for the acquisition of a new or used vehicle, you can choose to apply for a personal loan. The nature of this credit is not specifically related to the purchase of a car. It is a procedure without real constraint, as for the capped amount nor the proof of purchase. The personal loan usually offers more attractive interest rates, but some auto sales companies may disprove your choice of credit as an adequate form of financing.
This credit formula is specifically designed for the sole purchase of a vehicle. The purchase amount, consumption, interest rate, repayment period, etc. Everything will appear in the contract. You will generally be asked for proof of purchase and this is why we speak of assignment loans, because the amount is justified by the document just as the credit contract can intrinsically be linked to the car, this can result in prohibited resale clauses (to be taken into account).
Car loan consolidation
Motorists who already have current credits can take advantage of the credit consolidation to redeem their various debts and include the amount of the new car in the financing, this allows to repay a single monthly payment and finance the purchase of the car without accumulate another debt.
An interesting alternative to buying a vehicle is to rent it for a relatively long period against a monthly draft and with the possibility of contract renewal. If you no longer wish to use it, you can simply return the keys without having to worry about resale. In the case of a rental with option to buy, you can choose to buy the car if the company agrees.