1) The affected credit:
This loan is entirely linked to the property it finances. In the event that the contract is not carried out, the credit you have is automatically canceled. It is very often used to finance vehicle acquisitions.
2) Personal loan:
This credit is more “free” than the credit allocated. The amount of money borrowed is paid at once and repaid according to the credit schedule. The borrower has free use of it. The personal loan can be used to finance the purchase of a new car but also for leisure, work, a wedding, etc.
3) Rental with purchase option (LOA or car leasing) :
This formula appeals to many borrowers. The principle ? The borrower pays rent each month to use the vehicle according to a contract which defines its use beforehand (mileage, maintenance, etc.). At the end of this LOA contract, the motorist can buy the vehicle at its residual value or return it. The residual value is the amount you have to pay after deducting the rents and the guarantee you have paid. For example: for a car whose value is 10,000 USD for which you have already paid 2,000 USD in security deposit and 4,000 USD in rent, the residual value will be 4,000 USD.
4) Balloon credit:
Some lending institutions offer balloon credit. Like the LOA, the borrower can take advantage of the vehicle without having to take out a conventional car loan. He only commits to part of the value of the property after paying a contribution.
Once the contract is finished, he can buy it in cash, make a conventional vehicle loan to finance the balance to be paid or renew the contract. This solution is interesting for drivers who want to change vehicles regularly.
Take advantage of our expertise in auto credit, it’s easy and free!
Auto Credit: What You Need To Know
To acquire a vehicle, your purchasing capacity will depend on:
- your personal contribution : the larger the part you pay with your savings, the less you have to borrow. But it is not necessarily advantageous to release money that you have invested and which earns you interest.
- your borrowing capacity : this is the maximum amount of credit you can take out. Borrowing capacity is assessed by the bank according to reliability criteria for reimbursement by the borrower. It is higher if its income is high and its average expenses are low (rent, monthly payments in progress, dependents, etc.)
- the auto loan rate : the APR (Annual Effective Annual Rate) is an indicator of the cost of credit as a whole, including the costs linked to loan interest (at nominal rate), those linked to credit insurance, and those linked to the administrative costs.
Your monthly auto loan is the amount you will have to repay each month. It covers interest and part of the capital.
Loan insurance or auto credit insurance, although not compulsory, can be used to reimburse the auto loan in the event of a life incident (health problem, incapacity for work, etc.)
Compare car loans with Lite Lender
Why compare auto loan offers? The answer is simple: to benefit from the best fast car loan rate for your project! The higher the credit rate, the higher the cost of your car loan. Borrowing compares the vehicle credit offers of its banking partners for you and provides you with the best car financing conditions.
How to compare auto loans quickly? To compare car loan offers, just fill in a few fields on our cheap car credit comparison. To do this, first indicate the type of vehicle you wish to buy: is it a new vehicle, one less than a year old or more than two years old? What is the brand ? The model ? The type of motorization? After these few information related to the car, specify the amount of the best car loan you want to apply for and the duration of the latter (between 12 and 84 months). Then fill in the elements related to your professional situation, your monthly net income, your profession and your seniority for example. Finally, specify if you have outstanding loans (mortgage for your main residence or consumer loans). You then access the best car credit or motorcycle credit offers on the market and benefit from the best car credit rate for your purchase. The comparison is quick and without commitment.