Do you want to hit the road behind the wheel of a new car and are you looking for solutions to finance yourself? Don’t go your way, this article is for you.
Borrowing explains the different financing options available to you to carry out your project. Ready, set, go!
A budget, a car, a loan?
The first step, and not least, simulate your car budget based on your income and savings if necessary. You will thus know your automobile purchasing power.
If you want to buy your new car with a loan, to get into your budget the best option is to compare the auto loan offers (loan rate, duration, amount, insurance, etc.).
Compare also the different loans available
Depending on the use you wish to make of your vehicle, several possibilities for auto financing exist.
Rental with option to purchase (LOA)
The one that currently attracts the most households is undoubtedly the rental with the option to purchase LOA. How does it work? You rent the vehicle for a given period and can then decide to buy it at its residual value (provided for in the contract).
The total number of this type of operation increased by + 31.5%, or a cumulative amount of almost 6 billion dollars (5.858 billion dollars), according to the French Association Financial Companies (ASF). “Thus, the share of the LOA in the total financing of new cars increased from 35% to 67% “, analyzes the ASF.
Classic car credit
Auto credit can be a personal loan or restricted credit. These two types of consumer credit work differently. The personal loan is a sum of money loaned for various projects, the purchase of a car, the execution of works, etc. An assigned loan is directly linked to the asset it finances. In case of cancellation of the sale, the credit is canceled.
The number of credits allocated for new cars fell by 8.9%. Conversely, credits allocated to the purchase of a used car increased by + 9.3 % in one year.
Find your consumer loan at the best rate, it’s easy and free!