Are you looking for a new or used vehicle? Whether you want to become the proud owner of a car or a motorcycle, buying a new or used vehicle systematically requires a substantial budget. To help consumers with this important purchase, financial institutions offer car credit, click here. Assigned loan allowing individuals to purchase the vehicle of their choice, the latter is granted to consumers after examination of their situation by the chosen financial institution. Once the financing has been validated, the organization makes the amount of money available to them so that individuals are able to purchase their vehicle. Zoom on the steps necessary to obtain a car loan in the best possible conditions.
Perform online simulations
Nowadays, many banks offer online tools dedicated to car loans. In order to list the most advantageous offers, it is also useful to consult online simulation sites specialized in car and motorcycle credit. Thanks to these very practical tools, consumers can easily see their borrowing capacity based on the scheduled monthly payments. These online tools are also useful for quickly learning about current interest rates.
Define the purchase project in concrete terms
As the simulations carried out have given the consumer a precise idea of his budget, he can then move towards a purchase adapted to his finances: new vehicle, used vehicle, choice of a range adapted to the budget, … In the case of the purchase of a new vehicle, it will be advisable to ask for a quote. To purchase a used vehicle, it will be necessary to find out exactly what the vehicle is:
Potential repairs to be planned
Meet with banks or credit institutions
Once his project has been clearly defined, the future buyer can contact different institutions to compare the offers proposed. Take the documents listed above with you and tell each organization that you intend to compete. If your situation allows you to inject a contribution, choose this solution, which often reduces the final cost of credit. Once all the information has been gathered, each advisor will then make a simulation to give you his or her agreement in principle. Credit agencies set the rate for a car loan by determining the level of risk based on the borrower’s profile and analysing the borrower’s debt ratio. This includes checking the part of the consumer’s income that is already used to repay previous credits. In practical terms, if the applicant already has several outstanding loans to repay, it will then be less easy for the latter to obtain a new loan at a low price.
Once all the proposals from the funding agencies are in hand, the applicant can then compare the different offers in a rigorous way:
Total cost of credit (including application fees and insurance guarantees)
Clauses for deferring monthly payments
Penalties provided for in the event of late payment
Finally, it should be noted that credit institutions very often offer applicants a complete package that includes the car loan plus vehicle insurance. However, the loan beneficiary is under no obligation to accept this car insurance. He can choose to ensure his vehicle through another intermediary if he finds a better insurance offer elsewhere.
Prepare the auto credit file
When the organization to finance the credit for your vehicle is chosen, it is important to prepare the necessary documents to obtain the financing. Your file must contain the following elements:
An invoice from the seller (for the purchase of a new vehicle) or a letter in which your name and the price of the vehicle (for the purchase of a used vehicle) appear
An identity documents
Proof of residence less than three months old
Last tax notice
Last 3 pay slips
An employment contracts
Last 5 account statements
Once the loan offer has been signed, the consumer has a 14-day withdrawal period. Finally, in the event of failure of the sale, the car or motorcycle loan is cancelled and the amount advanced must be returned to the bank or lending institution.