To buy a car, you must plan an important budget. The latter will depend largely on the type, model and make of the car of your choice. The amount can range from about ten to a hundred thousand euros. If you need financing for this type of intervention, it is advisable to take out a car loan.
What type of loan is it?
Before starting, it is essential to specify that this is an allocated credit. It is granted to people who wish to purchase a motor vehicle equipped with four wheels. This loan allows the borrower to cover part or all the price of the car.
It is important to mention that obtaining credit and the actual purchase of the car are inextricably linked. In other words, if the car has not been returned to its owner because the delivery has been cancelled, the borrower will not repay anything. This previous rule is valid, regardless of the reason for the cancellation of the delivery. Similarly, if the borrower is unable to contact his lender, he can terminate the contract or more precisely cancel it without any additional costs. As a rule, the refund will only take effect after the vehicle has been received.
Do you know the characteristics of car credit?
Nowadays, more and more companies are offering car loans to their customers. To avoid regrets and unpleasant surprises, it is advisable to measure the advantages and disadvantages of several formulas before choosing the one that best meets your expectations. Here are the points to consider:
The TEG or global effective rate: it can be expressed as an amount or a percentage and represents the sum of the interest on the car loan. As its value varies from one lender to another, it is recommended to make some comparisons in order to find the best ratio between quality and price.
The duration of the car loan: counted in months or days, it will play a major role in the amount of the amount to be repaid. The longer it is, the higher the interest will be.
Borrower insurance: it is not mandatory, but experts recommend that you take out it, especially if you have borrowed a huge amount.
In which types of institutions can you borrow?
Car dealerships are in the best position to provide you with car credit. You can also use your bank or other specialized organizations in this field.