How to find the adapted auto credit?

The purchase of a new or used car represents the largest expense in a household. Most people then opt for a car loan solution from a dealer or a bank to facilitate the acquisition.

The rates applied to auto loans

The interest rates charged on a car loan usually vary depending on the age of the car. In other words, they are not fixed but different according to the lending institutions. Nevertheless, two types of situation can be distinguished, including the new vehicle and the used vehicle. In the automotive field, the borrower can choose the best vehicle and have a myriad choice in insurance. However, the total value of the new car is much higher compared to that of a used car. Thus, monthly payments are more important and sustainable. This often leads to an increase in the interest rate charged by credit institutions. It is entirely possible to avoid this rate increase with the help of a personal contribution. The borrower can then negotiate a lower rate because the loan will be shorter.

For second-hand vehicles, they are cheaper and interest rates may be lower because the repayment period is also shorter. It should be noted that when a lending bank agrees to finance a used car purchase, it takes more risks. The debtor may indeed be faced with a breakdown or spend a fortune on maintenance. As a result, he may have financial difficulty repaying the credit.

How to find the best proposal?

To find the best car credit well suited to the borrower’s profile and the condition of the vehicle, it is necessary to go through the online comparators. They are numerous at the moment and allow a quick answer. The online comparison tools will ask the borrower to fill in the fields by the type of his project (new or used car purchase), the amount he wants to borrow and the duration of the loan. The comparators can thus determine the value of the monthly payments according to the lending institutions.

It is also advisable to simulate your car loan to find the right address. The simulation can be done in his bank, because the debtor’s financial situation and its history are better known. To do this, the borrower must calculate its purchasing capacity and its debt ratio to know the amount it can have. Car Credit Simulation is an easy and quick step that provides insight before committing.