Buying a new car, for some families, is a vital need. However, very few people can afford to buy a new car with cash. Indeed, it represents a certain financial investment that few people can afford. This is what most people use a car loan for. However, we do not choose a car loan at random. And for good reason, there are different criteria to take into account such as, in particular, the person to whom we will subscribe this credit. In this case, how do you choose the right car loan? What criteria should be used before making a choice?
Several options are available to you
First of all, it is very important to choose carefully the organization with which you will take out your car loan. Indeed, there are many organizations that allow you to obtain auto credit, such as banks and credit institutions. But for some time now, automakers have been doing it too.
“During the past decade, automakers have launched an unprecedented offensive in the distribution of credit. Indeed, credit institutions and banks no longer have this monopoly: the automotive industry has integrated the fact of integrating the financing chain was strategic in their business. Moreover, a study of the firm Athling indicates that by 2025, 25 % of the production of automobile loans would be controlled by the industrialists. Empirically, we can observe it by the development of subsidiaries Credit (PSA Peugeot Group) or DIAC (Renault)."According to an excerpt from an interview with Nizar FASSI, responsible for the publication of Rachatducredit.com.
In terms of the various auto loans available to you, you have the choice between a personal loan that will allow you to buy a car or whatever you want, an assigned loan that is specially designed to buy a particular product such as a car. . Finally, you have the balloon loan which is a kind of long-term rental with the option to buy it later. So choose the loan that meets your needs.
The budget is very important
Before applying for a car loan, you must first know if you will be able to meet the monthly repayment payments thereafter. Indeed, these monthly payments should not exceed 33 % of your monthly income. So, do a little calculation taking into account the price of the car you want to buy and break it down into monthly installments so you know how much you can repay per month. A loan is a real long-term commitment and it will unfortunately be refused if you do not have a stable professional situation.
As you will understand, it is important not to choose a car loan lightly because there are many very important criteria that must be taken into account. A loan to buy a car requires a fairly long commitment, sometimes over several years, so look ahead to see if you will still be able to meet these monthly payments. Obviously, hard knocks can happen in the future, which is why it makes more sense to take out insurance to cover these life issues as well.