When looking for a vehicle, it may sometimes be necessary to obtain credit to buy a car, whether it is new or used. As we will see, there are several means of financing for the acquisition of a vehicle such as car credit or long term rental. There are also several places to take out the loan to buy a car. We compare the best loans to buy a car and offer advice to ensure you get the best rate.
There are two types of loan to buy a car on credit, the classic car loan which is part of the range of consumer loans or the principle of rental with rental with option to buy (LOA) or long term rental (LLD).
This type of financing is the most common, via a car loan, to buy a car on credit and generally allows you to benefit from the most attractive car credit rates . In order to be able to benefit from it, you must be able to justify that the loan granted will be used to purchase a new car. In other words, provide proof of purchase with the rest of the credit file to buy the car.
This loan has the same characteristics as the new car loan . The main difference is that it is suitable for the purchase of a used vehicle. As a general rule, the vehicle is considered used when it is more than 2 years old. The other difference is that the rates charged on this type of loan are generally higher than new car credit. Finally, you will not necessarily be asked for proof of purchase to obtain a credit to buy a used car.
In addition to the car loan, there is another type of credit for buying a car: it is financing by long-term rental (LOA or LLD). This type of financing has been popular for several years. It is no longer just for professionals. The advantage of long term rental is that it offers more freedom because the "buyer" is not really because he is the tenant of the said vehicle. As such, the tenant pays a pre-defined rent to take advantage of the vehicle. Beyond this advantage, the main drawback lies in the fact that in the end, this type of financing generally turns out to be much more expensive than a conventional car loan.
There are real financial companies specializing in this promising sector such as Cetelem Renting or Viaxel.
When buying a new vehicle, very often the first idea is to take out a loan to buy a car in the same place where the car is purchased. At first glance, this indeed seems simpler and it is possible to believe that the credit to buy a car could be all the more attractive because it is buying a car with bad credit linked to the purchase of the vehicle.
Unfortunately this is far from being always the case, and it is therefore essential to compare the rate of credit offered in concession and the offers offered by banks and specialized credit organizations. Obtaining a car loan online or in a bank is no more complicated than at a concession and the supporting documents requested will be the same. In addition, the car loan may also be subject to the purchase of the vehicle.
Another scenario that can occur to finance your car is the offer in concession of the auto loan at 0%. This proposition is of course the best with regard to credit as such. However, it is necessary to study the offer as a whole, that is to say the final price of the vehicle added to the cost of the credit. Very often, the counterpart of a 0% car loan is the difficulty of negotiating a good discount on the price of the new car , an inseparable element of the interest of the offer. Therefore, in some cases it is better to untie the purchase of the vehicle and the credit to buy a car at the best price.
