finance your dream car –

Want to buy a new car but can’t finance it in full? Consumer credit can meet your needs.

Buying a new car is many people’s dream. Despite the use of this means of transport, it remains a real investment that your savings cannot always cover. In this case, a loan can be useful. With a consumer loan, you can cover the costs of buying your new or used car yourself. Note that there are several types of consumer loans to finance a car, and it will then be necessary to compare them to find the best offer.

The advantages of a consumer loan for the purchase of a car

Consumer credit is per definition a loan granted to finance consumer goods such as a car. It is well known that not everyone has to pay for a car in cash. Consumer credit has been shown to be aimed at individuals a real alternative for low-income households. It therefore gives them an easier opportunity to get a new vehicle without jeopardizing their savings.

The process for obtaining this type of loan is generally easy and the loan interest rates are attractive. In principle, a consumer credit provides great flexibility in relation to reimbursement or loan terms. You have the option of choosing between quick repayments with high monthly payments or installments over a longer period with lower monthly payments.

Consumer credit also gives you the opportunity to start the repayment once you have received your car. In addition, consumer credit is a quick way to get the car you need. Regardless of the type of loan you choose, you can get your car in a short time. You also have great freedom in choosing a car. Depending on your ability to repay and your preferences, you can thus choose a new or used vehicle, a city car, a family car, etc. specify it consumer credit amounts to a maximum of 75,000 euros.

The different types of consumer credit to buy your car

There are several types of consumer credit and some are very useful for financing a new vehicle.

The loan granted

The loan in question is one of the most important credits to finance your project. As the term suggests, affected loan is any credit ie intended solely for the purchase of one item and one only. In this specific case, said property is a car. The designated loan is considered the safest car loan because it is specially monitored. It can cover all or part of the purchase of the car. Funds are made available at the time the car is delivered to you, and this is also when repayments should begin.

The advantage is that if the sales contract for the vehicle is cancelled, the loan will not be granted to you. This way you avoid having to repay a loan that has not been used. Conversely, if credit is denied, the sale will be void. The assigned credit offers a fairly attractive interest rate and the interest to be repaid is known when the contract is signed. Remember that it is impossible for you to use your car loan to finance anything else; you must justify the use of the loan to your bank.

Unassigned credit

Also called a personal loan, unlimited credit makes it possible to finance several types of property (except real estate). In contrast to the consumer loan granted, the requested amount is transferred to your bank account if the credit institution considers that you are suitable to repay. One of the benefits of unlimited credit is that you have no obligation to justify the use of the loan granted. It is a loan that is easy to negotiate and that you can dispose of freely.

You therefore have complete freedom to manage your funds. You have the option of using your credit to finance your car and other equipment or needs. We advise you to remain strict with such a loan to avoid using the funds for unnecessary expenses.

The same loan can therefore be used to carry out other smaller projects in addition to the purchase of the car, without you having to inform the credit institution. With this loan, you have time to get your car when it suits you. No initial contribution is required for providing this type of credit. In addition, the repayment of this loan begins as soon as you receive the funds. It should be noted that even if you abandon the purchase of the vehicle, you will still have to pay off this agreed debt. Finally, with a private loan, you have 14 days to change your mind after signing.

Lease with option to buy

Lease with option to buy (LOA) is an alternative to long-term lease. Still known as lease with promise to sell or car lease, this consumer credit makes it possible to rent a vehicle for a longer period and give you the option to buy it at the end of the contract. The lease period can vary from 2 to 5 years or more. Note that the owner of the vehicle in question is generally a credit institution. All you have to do is make a deposit, which will be taken into account when you buy the car. It is considered consumer credit as long as the total amount does not exceed 75,000 euros.

Leasing with an option to buy is very advantageous and allows you to acquire both new and used vehicles. This option is actually very common to acquire a car. In such a contract the car’s total price is known in advance and may be higher than for a car loan. In addition, a leasing contract with a purchase option obliges you to insure the leased vehicle, to take care of its maintenance and to respect the mileage approved in the contract.

Balloon credit

The balloon loan is taken out like a car rental contract; thus, it is one of the many ways to buy a vehicle. It is possible to benefit from this loan in credit institutions, but also in car dealers. The latter gives you a new or used vehicle thanks to this contract. In return, the person who benefits from the rental must an initial contribution equal to 10 or 20% of the car’s price.

The monthly payments for this credit are relatively low and can extend over 48 months. Please note that you only become the real owner of the vehicle when you regret the purchase option. On the one hand, this contract makes it possible to change vehicles frequently. More expensive than leasing with the option to buy, the balloon loan also makes it quite easy to get a new car. In addition, if you choose a balloon loan, you are responsible for the maintenance of the car as well as the insurance for the entire rental period. You must also respect an imposed mileage.

A consumer loan is given to deal with various situations, such as the need for a new car. The amount of consumer credit is between 200 and 75,000 euros. The rate on your credit varies depending on the type of consumer credit and the credit institution. In general, you repay the loan gradually over a predefined period (minimum 3 months) and with interest. You have that too the possibility to repay your loan early.

We also recommend that you take out borrower’s insurance. Although it is optional, it will be very useful for you. It will make sure to repay your credit in case of situations like death or disability. Note that regardless of the type of credit you choose, your debt ratio must not exceed 33%.

Find the best offer for your car

Before you get a consumer loan for your new car, we advise you to first identify the type of loan and the offer adapted to your needs. In order to find the best loan offer for the purchase of your vehicle, it is important to take certain elements into consideration. You have to take into account personal contribution. The amount to be paid for the contribution can help to reduce the costs with which the loan will return to you.

The annual percentage rate is just as important if you’re looking for a cheaper deal. This includes, among other things, expenses for the various fees and expenses for borrower’s insurance. Note that this rate varies from one credit institution to another and it represents the real cost of your credit. In addition, it is absolutely essential to take into account your debt capacity, but also the costs associated with credit. You can also perform a consumer credit simulation to determine how feasible your project is.

Finally, the best way to find a good offer for your car is through a consumer credit comparator. Highly recommended by professionals, online comparators are free tools that inform you about the best offers from different credit institutions. This solution therefore gives you the opportunity to put these companies in competition. Online comparators save you time and are your best allies in finding the most suitable offer for you to buy your car.

To use a comparator, simply do so fill in the necessary information and you will find the offers that suit you. A consumer credit comparator also compares consumer credit prices.

Once you have defined your project and found the offer that suits you, you must deliver a convincing file to the credit institution. The latter will examine your debt capacity as well as your supporting documents. These are documents that substantiate the identity of the borrower, his income, his banking relationship and his place of residence. This is after the investigation of your case, the company will decide whether the credit will be given to you or not. Note that the debt capacity indicates the amount you are able to pay in repayment each month.

Depending on the type of loan you are eligible for, you will either have to use the funds only to finance your car, or you will have the option of investing them in other projects. In both cases, you have the advantage that you can choose the car that suits your needs.

Remember that despite the flexibility, consumer credit is not available to everyone. Make sure you meet certain criteria. To hope to get the loan to finance your car, you must:

  • have a regular and stable income,
  • to be of legal age,
  • be a French resident,
  • not be registered in the Banque de France National Payment Incident File (FCIP).

Note that these conditions make it possible to protect the credit institution, but also to protect you from the risks of excessive indebtedness. The documents required by the bank can vary significantly depending on the type of consumer credit chosen. If your request is complete and realistic, the company will provide you with an offer based on your profile. If you want a quick response, you can send your request online.

If there’s one thing to remember, it’s that choosing consumer credit to finance a car still has a bright future ahead of it. It remains very beneficial for individuals. However, make sure to choose the best offer according to your situation. You can also call a broker.

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