The car loan is particularly suitable for the purchase of a new car, given its higher amount and its longer lifespan. The new car loan, however, offers several financing methods. http://www.antiquestoveassoc.org/bad-credit-score-car-loans-need-an-auto-car-loan-for-bad-credit-no-worries/ for more.
New car loan: a higher amount to borrow
Buying a new car requires a larger budget than buying a used vehicle. In France, the average cost of a new car is around $ 25,000. An amount that is not easy to pay cash, because it exceeds the average annual net salary of the French! A new car loan is therefore often essential to finance this heavy expense. Compared to buying a used car, this means borrowing a larger amount and therefore leaving on a longer repayment term. Nevertheless, a new vehicle allows better amortization over time thanks to its greater reliability.
5 forms of borrowing to finance a new car
There are several methods of financing purchase on credit to afford a new car:
- The new auto personal loan : it is possible to borrow the sum from a credit institution without directly allocating it to the purchase of the new car. This unrestricted car loan offers more freedom (amount, date of the first monthly payment, no proof, etc.). But the personal loan does not benefit from the protections of the auto credit (in case of cancellation of the sale for example), nor from the advantageous conditions of the auto credit rate.
- New car loan : this is a consumer loan used to purchase the vehicle. The amount may partially or fully cover the cost of the new car and reimbursement begins upon receipt. A new car loan can be taken out at any lending institution, but also directly from the dealer or manufacturer.
- The new car pack : you can combine the car loan with car insurance, assistance and maintenance, or even the extension of the manufacturer’s warranty. The advantage: favorable loan and insurance conditions and a single monthly charge.
- Rental with option to buy : this is a formula originally created for the purchase of a new car. The LOA allows you to rent the vehicle for a period of up to 72 months, while benefiting from a reduced purchase offer at the end of this period which takes into account the rents paid.
To finance your new car at the best price, it is best to compare the loan offers. You can do it easily with a few clicks thanks to our auto credit comparator .