Car concession credit: how to avoid traps?

 

Taking out a concession or rental loan accompanies more than half of sales. However, beware because it is often possible to find better car credit than that of the dealer. And what about rental?

Car concession credit, by whom is it offered?

Car concession credit, by whom is it offered?

There are mainly two types of concession credit:

  • Credit from manufacturers’ financial subsidiaries
  • Auto credit from specialized organizations

The credit of car manufacturers

Car loans offered by manufacturers are omnipresent in garages. Indeed, it is an extraordinary lever to successfully sell. When we know that more than one car in two is financed, we understand that it is essential to offer credit in concession for car manufacturers. 

But smaller builders also have their own concessional credit. For example, KIA credit is offered in partnership with CGI. This Social general subsidiary specializes in supporting branded automotive financing that is not sufficiently established to create their own financial subsidiary. It also supports, for example Hyundai, Tesla or even Porsche or Subaru.

Credit from specialized organizations

Brands like Viloan or Bankate don’t just offer direct car credit as we will see later. They have also created specialized subsidiaries to support networks of independent garages.

Indeed, the concessionary credit of a multi-brand garage could be that of a manufacturer whose cars it sells. But he must also be able to offer financing for all the other cars he sells. The car concession credit can therefore be managed by Viaxel (Viloan brand) or by Bankate renting (Bankate brand specializing in rental).

Obtain the best concession credit rate

Obtain the best concession credit rate

There are many auto promo credit rate deals. Some people do not hesitate to offer a fixed 0% taeg rate. As we have analyzed in many articles, we must be wary with these hooking rates which are intended to trigger the passage to the act without that they represent the best offer.

Without going back into the details of this type of concession credit offer, let us simply recall the points of vigilance:

  • on taeg rates 0% : this is often the way not to make a discount on the price of the vehicle or a limited discount. You should know that this type offers only equivalent to about 5% discount on the price of the vehicle.
  • on low rates : they are often limited to repayment terms of 12 months. In this case, the monthly payments of the concession credit explode. The seller offers a longer duration but often the rate is no longer promo at all.

We have therefore developed a method to obtain the best rate of credit in car dealerships.

New car loan in concession

To get the cheapest new car loan in dealerships, here is the method we offer:

  1. Find the best rate on the market
    For that, it is quite simple. To know the best new car loan rate among all the major credit agencies, just use our comparison engine.
  2. Get the best offer adapted to your situation
    When it comes to credit, knowing where the best rate is is not enough. But you still have to be able to get it. Our exclusive system makes it possible to obtain a principle response without commitment in real time from the cheapest organization.
  3. Receive / print the advance credit offer
    To be able to negotiate well, you need evidence. By receiving the contract by mail and / or printing it, this document will show the dealer what better rate you can actually get.
  4. Go to the dealership
    To get the best deal loan, you just need to ask the dealer to make their best offer. Either it can do better, or you already have the best deal.

Used car loan in concession

The same method can be used to obtain the cheapest used car loan. You just have to know that the second-hand loans offered in dealerships are often even less competitive than the new car loan.

Concessionary loan against rental

Concessionary loan against rental

This is the big trend of the moment. The most popular offers currently available to finance your car are not concession credit but rental. Indeed, this financing offer has enormous advantages.

The first advantage of leasing, LOA or LLD, is that it is not subject to the same regulations as that of car credit. In fact, there is never any question of the rental rate or total cost on any advertisement! And for good reason, if it was the case, the rates would explode! This is what we had identified in our comparison between car loan and rental Certainly, rental is subject to usury like credit in concession but if customers saw at what rate they finance their rental, sure that many of they would think twice.

The other advantage of leasing is that this method of financing is much more flexible than car loan in concession. It is possible to request a higher or lower first rent and to define a recovery amount which is also higher or lower. This makes it possible to display small monthly payments without knowing exactly what they correspond to. This is all the more true since concession rental generally allows maintenance and guarantees to be added to financing without the client really knowing what he is paying.

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