It is rare to be able to pay cash for the purchase of a car, especially if it is new. For the acquisition of a new vehicle, different forms of consumer credit coexist: if each formula has its own advantages, the car loan turns out to be the most interesting for this type of project. A few points are worth highlighting ...
It is an affected credit, that is to say it is linked to the acquisition of the property for which the credit request was made. It is therefore a consumer credit different from the personal loan, which can be used freely. Auto loan is also called auto loan, auto loan, car loan ... Any type of new vehicle can be concerned, with the exception of an acquisition in a professional context.
To obtain a car loan, it will be necessary in particular to provide proof of the purchase of the vehicle (hence the name of the affected credit). And, at the time of purchase, the purchase order will specify that the transaction is linked to obtaining the credit.
The interest rate of a car loan is lower than that of a personal loan, while the amount borrowed can be higher: granted for a period of at least 3 months, the loan can relate to an amount between 200 and 75,000 US dollars.
Another major advantage, as long as the good is not delivered, the execution of the credit cannot take place: if the sale must be canceled, because the vehicle is ultimately not available or because it is defective, the credit contract is automatically canceled; furthermore, the repayment of the credit cannot begin before the delivery of the vehicle.
Finally, the repayment period can be longer than that of a personal loan, the monthly payments are reasonable although the amount borrowed is higher.
The most important protection is based on the concept of affected credit as it has just been explained: if proof of purchase of a new vehicle must be provided, in return the absence of delivery of the vehicle cancels the credit. .
In addition, in the case of consumer credit, various measures protect the consumer; the withdrawal period is 14 days after signature and prior information must be provided when applying for a loan: they relate in particular to the annual percentage rate of charge (APR) and the schedule of monthly payments to be reimbursed ... automobile is a repayable loan: this means that the consumer knows at the start of the contract the cost, duration and monthly payments of the loan.
It should also be noted that it is possible to repay this credit early: the contract provides for the compensation that will be required.
With the car loan buyback , you avoid over-indebtedness, your purchasing power remains the same and you manage to settle all of your loans every month.