Are you planning to buy a nice used car? What if you opt for a car loan as a method of financing? Once limited to new cars, car loan solutions have become easier and can now be used to buy used cars. And because credit commits you to repay capital and interest over a predefined period, there are different ways to find the right formula for your needs and your family budget. Some tips to help you find the right auto credit for buying a used car.
Classic car credit for a used car
The classic car credit formula will suit you if you are one of those people who easily attach to their car and would be willing to keep it for more than five years. Realized under the terms of the assigned personal loan, the conventional car loan is provided with a fixed interest rate, details of which include the cost of acquisition of the car, the repayment period, the cost of the monthly payments and the total amount of the car. credit are confirmed in the contract. This classic form of auto credit is offered by banks, credit organizations and financial subsidiaries of car manufacturers.
With the classic car loan, you indicate yourself the period that you will put to refund everything, as well as the amount of the monthly payments that will be supported by your budget. To do the math, feel free to use the online car credit simulation tools that give you all the details regarding your auto loan. To better convince the bank that will finance the purchase of your car, it is advisable to provide a personal contribution that represents 20% of the capital borrowed. This contribution will make it easier for you to access a lower interest rate and lower the total cost of the loan, which is the budget that took you to acquire the vehicle. In addition, the contribution will allow you to benefit from an insurance premium in case of theft or vandalism on the car during the repayment period, which will help to settle the credit, an impossible step with a 100% financing the purchase of the car where you risk repaying the remaining capital even if an incident occurred during the repayment period of the car loan.
Leasing for a used car
Better known as “lease with option to buy”, leasing is a car loan solution that allows you to change cars every two years without having to deal with the process for resale. At the end of the rental period, you can return the car by collecting the security deposit you provided at the time of the contract, and use it with another vehicle. And if you decide to keep the used car, you can subscribe to a contract with a commitment of recovery that avoids you to pay the last term of the car credit, a monthly payment that refers to the difference between the cost of the car and the total monthly payments you have already paid during the rental period.
The credit report
In the course of your research, you have fallen in love with a beautiful German car, but have not yet the funds for this purchase and you still have your old vehicle. In this case, you can apply for a car relay credit that will serve as a contribution to buy the used car. What’s more, the amount of this bridge loan is always calculated according to the value of your old car that will be sold at a good price and as soon as possible. Another important asset is that the bridge loan and auto loan can be combined to reduce the applied rate and allow you to get rid of the relay loan once and for all once you have successfully sold your old car. You will only be left with your self-refunded credit with the preferential rate that you have been granted before.
“Auto packs” as auto credit
Today available for the purchase of used vehicles, the “auto packs” of credit institutions and manufacturers are profitable solutions for borrowers. Indeed, these are all-in-one offers that include auto credit, damage insurance of the car, assistance, maintenance and extension warranty manufacturers. Other benefits of packaged formulas, interest rates are reduced and you get a discount on insurance. Thus, all these contracts are subscribed once and you just have to choose the offer that you think is the most interesting.
Where to buy your used car with a car loan?
To find the used car that you are going to buy with a car loan, start by going around the classifieds of private individuals on the internet, as well as the offers of the garages having a stock of vehicles of quality.
If you opt for a car mechanic, you can reassure yourself, because the seller is responsible for hidden defects and non-visible defects of the vehicle. You will also have all the information on the year of the used model of your choice, the date of its first entry into circulation, the mileage and the price of the car. What’s more, you’ll get a guarantee on the purchase of this used car.
On the other hand, if you decide to buy a used car from an individual, you have the opportunity to get a better price, but will not be able to hire it in case of hidden defects on the vehicle. Before concluding the purchase, make a full visit of the car and ask to give it a try. And to avoid unpleasant surprises, seek the help of an independent technical control center or an experienced friend to examine the car. Finally, ask all the information about the characteristics of the vehicle and its possible defects before signing the contract of sale of your used vehicle to acquire with a car loan.