Do you intend to acquire a vehicle, but like the vast majority of households, you do not have the capital needed to finance it?
In that case, taking out a car loan is the ideal solution. You will indeed be able to concretize your automobile project, without necessarily needing a personal contribution. With Loan Financial, experience a fast, efficient and transparent car loan in just a few clicks!
Car credit, what’s that?
A car loan is a loan to finance the purchase of a new or used car. It falls into the category of consumer credit. This type of loan is triggered when a car is purchased and cannot be used to purchase another good, just like motorcycle credit. It is referred to as affected credit.
Thus, it differs from a personal loan, which is intended to strengthen cash flow. Car credit or car loan is therefore better perceived by a banker than a personal loan.
Car credit between a new or used car
For the purchase of a new or used vehicle, the way auto credit works does not change.
Of course, prices are very often different between a new and used vehicle. Consequently, the volume of credit is not the same. But in the case of a new vehicle, the banker takes into account the cash contribution to the resale of the vehicle if it takes place within the first 5 years after purchase.
In the case of a second-hand car, even if the price is lower, the cash contribution to the resale is often lower. Before taking out a car loan, calculate your car borrowing capacity to get an idea of the maximum loan you can ask for.
Car credit: the choice of security
Since car credit is exclusively dedicated to the purchase of a vehicle, the buyer is covered if the purchase is unsuccessful. It is also covered if the loan is not accepted. And this, again, whether he chooses a new or used car. In concrete terms, this translates into :
– A contract of sale null and void if the borrower doesn’t get the loan;
– An automatic cancellation of credit if the car is not delivered;
– A first monthly installment drawn only when the buyer has taken delivery of the vehicle.
Thus, the buyer does not have to repay a debt which, in the end, is not a debt as long as the property is not in his possession.
Good to know: an important mention to be made on the purchase order.
On the order form drawn up by the seller, make sure to mention that obtaining the loan conditions the purchase of the vehicle.
You should also know that, in accordance with Consumer Law, you have a 14-day withdrawal period. This applies both to the credit itself and to the purchase of the vehicle.
Terms and conditions of funding agencies
In a car credit offer, you will find a number of elements. These determine the total cost of the loan (expressed in euros), and vary from one lending organisation to another. This is why it is worth comparing the different offers that are sent to you. Below are the 3 main factors to consider.
The repayment period
Expressed either in months or years, the repayment period corresponds, as its name indicates, to the period during which you will have to repay your loan.
The monthly payments
A monthly payment determines how much you will have to pay each month. They are closely linked to the length of the loan: the shorter the term, the lower the interest, and vice versa. But obviously, in the case of a short duration, the amount of the monthly payments is revised upwards. It is therefore important to take into account your resources.
The overall effective rate
The annual percentage rate of charge (APR) is to be differentiated from the nominal rate. While the latter includes only a small part of the costs, the former includes all the costs associated with the credit, i.e. interest, administrative charges and any insurance contributions. It thus reflects the real cost of car credit. It is therefore the APR that you should study if you wish to obtain the most advantageous loan.
On the other hand, if your personal contribution (if any) is substantial, the lending institution will be better disposed to lower the APR. Thus, if you are not in a hurry to buy your car, and if your income allows you to do so, leave yourself a few months to save money.
What about creditor insurance?
Borrower’s Insurance is not mandatory, but it can be very useful if you are unable to make your monthly payments. Indeed, this insurance covers you in case of temporary incapacity to work (TTI), disability, total and irreversible loss of autonomy (PTIA) and death. It can, however, significantly increase the amount of your monthly payments or, potentially, extend the duration of your repayment if your personal capital proves to be insufficient. In the latter case, the rate of your loan would be increased.
Before taking out such a contract, it is therefore strongly advised to compare loan insurance policies.
Car credit: the reasons for choosing Loan Financial
Loan Financial is the only retail lending platform in Europe with its own credit institution license, issued by the French Prudential and Regulatory Authority (Autorité de Contrôle Prudentiel et Résolution). It is revolutionising consumer lending in Europe, and today offers a real alternative to traditional credit companies.
Indeed, thanks to its innovative refinancing model, our company now enables professional investors (individuals, but also legal entities: companies, pension funds, insurers, foundations, etc.) to directly finance consumer loans to French, Italian, Spanish and Portuguese households.
Today, more than 150,000 European customers have already been won over by the Loan Financial offer.
The advantages of Car Credit at Finanz
To finance the purchase of your car, Loan Financial offers you, thanks to its analysis technologies, the simplest online credit application on the market. Get an immediate answer in principle, and a definitive one in less than 24 hours * ! You can request an amount between 1,000 and 50,000 euros.
In addition to the speed and simplicity of our offer, Finanz guarantees the protection of users’ personal data, as well as the security of its platform.
How to apply for a car loan at Finanz?
In concrete terms, to make a request to us, we invite you to carry out a simulation: in a few clicks and in less than 5 minutes, you can fill in our secure form and access an immediate response in principle.
Then, we will propose you to subscribe to your contract by signing it electronically, and to send us the documents necessary for the study of your file.
We then undertake to provide you with a financing decision within 24 hours* of receipt of the complete file, and then to send you the funds in record time.
Thanks to our innovative and secure internet platform, you can benefit from the best rates for your car loan, so don’t hesitate to simulate your car loan with Loan Financial to make your project a reality!
The three key points to remember about car credit:
– It is an earmarked credit which, by definition, consists of granting the borrower a sum of money strictly to cover the purchase of a car.
– The repayment period, the monthly instalments and the overall effective rate are the 3 main criteria for choosing such a loan.
– It secures the borrower: failure to obtain the loan automatically cancels the purchase, and the same applies to the loan if the delivery of the vehicle does not take place.
Contact us to get your credit:
Address: Charlottenstraße 33 / 33a, 10117 Berlin / 32 Rue de Saint-Pétersbourg, 75008 Paris, France.
WhatsApp Telefon: +49 17 627 985 007 - France: +33 7 56 87 29 46
Email: firstname.lastname@example.org / email@example.com