The car loan can amortize the purchase of a car over several years. Credit organizations, dealers, banks and insurers all offer new or used auto credit. Let’s review the advantages of each actor, in order to get a car loan at the best rate.
Hurry up and Request a finance car loan bad credit
Applying for a finance car loan bad credit online via motorlender allows you to speed up your project. Comparing the best rates on the web is the assurance of having a first overview of the most advantageous offers of the moment.
The second step is to perform a no-obligation car loan simulation. This will allow not only to calculate its repayment capacity but above all to obtain an initial response in principle immediately. Our new (2 years) or second-hand (+ 2 years) auto loan comparator allows you to query the three best organizations in a single form. Save time, and as many chances to get a cheap car loan really accepted.
New car loan: reassuring credit
The new car loan obtained from a credit organization also provides several guarantees:
- The loan is canceled if the car is not delivered since it is “assigned” to its acquisition.
- The sale is canceled if the loan money is not finally obtained. The contract will then be considered void, provided that it stipulates that the car is financed on credit.
- The reimbursement does not start until the car is delivered. This is the principle of a car loan, more reassuring than a loan without proof of project.
Beyond these guarantees, the borrower always has 14 days to withdraw. Specific to each consumer credit, this right of withdrawal only begins when the vehicle is delivered.
Auto loan: where can you get it?
Generally limited to $ 75,000, the car loan is mostly repaid over several years. There are several players capable of offering car credit:
- Online credit organizations
The best auto loan rates are usually offered by credit agencies. All specialists offer a new car credit or used car credit formula. Finding out about car credit on the internet allows you to compare offers without having to travel. Competition is strong between the best specialists favoring access to a car loan at the best rate.
- Car dealerships
Going to a dealership to get your car loan makes sense. Any manufacturer will be able to offer a credit formula (LOA, LLD, classic car loan) to facilitate the purchase of a vehicle in its range. We will, however, see that the credit of the dealers is rarely the one allowing to obtain the best car loan rate.
- Banks and insurers
Banks almost all have car loan offers. Generally uncompetitive at the level of APR rates, car credit from banks and insurers is above all more difficult to obtain than that online. Only good customers are generally eligible for car credit from a bank or an organization.
New car loan: the best rate or nothing
The French spent an average of $ 26,717 to buy a new car in 2018, according to a survey by Argus. Getting the best APR rate on a new car loan saves hundreds of dollars. Example with two of the best offers from our auto loan comparator, considering a loan of $ 20,000 over 84 months.
|For a new car loan of $ 20,000 over 84 months||Fixed APR rate||Monthly fees||The total cost of credit|
|Best Credit Organization||3.98%||272,54 $||2893.36 $|
|Second best organism||5.79%||288.75 $||4255.00 $|
The best $ 20,000 auto loan online is $ 1,361.64 cheaper than the second. The cost difference is even more marked between the best organization and those ranked from third place. The search for a cheap car loan necessarily goes through online comparison.
LOA and LLD, the wallet’s false friends?
The rental formulas with the option to purchase (LOA) and long-term rental (LLD) have been wildly successful in France. These financing methods boost the new car market, despite their many pitfalls. They consist of renting a vehicle over several years, with or without contribution, with fixed and – a priori – affordable monthly payments. The vehicle must be returned in good condition in the case of long-term rental. The LOA, on the other hand, makes it possible to acquire the car, provided that the amount remaining due at the end of the rental contract is paid.
Rates difficult to estimate
It is very difficult to estimate the total cost of a car loan via LOA or LLD. The driver’s profile (number of kilometers estimated per year) and his use of the vehicle are all elements allowing the amount of the monthly payments to be determined. Some individuals will, for example, pay a far too important maintenance or repair package, related to their use of the vehicle.
Our various studies reveal that the traditional car loan is generally more advantageous than LOA or LLD. The fixed APR rate of conventional car credit allows you to pay overtime, without surprise. This notion of stability is impossible with rental formulas, based on too many uncertain parameters (cost of maintenance or repairs, the total cost of the vehicle, recovery costs, etc.).
The used car loan
These are the credit agencies that offer the best deals on used car loans, a market very focused on the individual to individual. The price of a multipurpose used car is between 8,000 and 10,000 $ on average. There are two formulas for financing a second-hand car loan of $ 5,000 or more:
- A loan without proof of use
Online specialists theoretically offer all loan formulas without a proof (need for money, personal loan, etc.), much more suitable for buying a used car.
- A used car loan
Certain credit organizations also offer formulas dedicated to used cars, the seniority of which generally exceeds two years. The rates are in this case slightly less attractive than those of the new car, under similar conditions.
|For a second-hand car loan of $ 8,000 over 60 months||Fixed APR rate||Monthly fees||Total cost of credit|
|Best Credit Organization||2.80%||145.16 $||574.60 $|
|Second best organism||3.45%||145.16 $||709.60 $|
It is generally not necessary to provide proof of purchase to obtain a used car loan. It is indeed rare that an individual publishing a used car advertisement on Leboncoin, Paruvendu or Lacentrale is able to provide an invoice or an order form.
Car loan in concession: beware of overly commercial offers
The interest of a professional is to attract the customer to the dealership, where he can sit behind the wheel of the car of his dreams. Some manufacturers have their own financial organizations. Resellers are armed to offer a solution to each individual. They use all strategies to never let a customer fly.
0% credit, LOA formulas with small monthly payments, advantageous takeover proposals: manufacturers’ promotional offers sometimes hide complex formulas.
A 0% fixed APR credit implies, for example, that the interest on the loan is borne by the brand. Such a practice should draw attention to the price of the car itself. A dealer offering to finance a “no-cost” car undoubtedly masks an additional cost on the initial price of the vehicle. It may also be that this loan is only possible in a very short term, involving huge monthly payments. Once this loan has been refused on the basis of income, the builder can easily install its rental formulas (LOA, LLD), or long-term loans with much higher APR rates.
Cheap auto loan: five steps to get it
Almost half of the auto loan applications are turned down. This is why before thinking about getting the best rate, you have to ask yourself if your approach is the right one. The next five steps should lead us to get the best car loan.
- Get the best auto loan online
To do this, simply contact our new or used car loan comparator, indicating the amount of the car and the duration of the repayment.
- Get a loan contract without commitment
Getting a positive review online is a great foundation. Our auto loan form offers up to three responses from the best agencies. If none is positive, it may be worth modulating the basic criteria.
- Find out in concession about financing rates and formulas
The loan offer obtained at the best rate online is a guarantee of security. Any proposal for concession financing that is less attractive or too approximate (LOA, LLD) can easily be rejected.
- Get an appointment with their bank advisor or auto insurer
Banks and insurers are only very rarely able to match the APR rates charged online. However, nothing prevents us from trying our luck, hoping to obtain an unmissable proposal.
- Send supporting documents for the auto loan at the best rate
Once the best car loan has been identified, all that remains is to send the supporting documents. The final answer will not belong incoming (48 hours on average), even less if the request is made online. The deadline for obtaining credit money is always eight days minimum.