The purchase of a car is usually accompanied by a large expenditure and then a car loan can offer a solution. A second-hand car or a new car can be bought with car financing. If a car is sold at a car dealer or garage, the opportunity can often be taken to arrange car financing on the spot. However, it is also possible to look for a car loan yourself , because that makes it possible to compare the offer. This makes it even cheaper to take out a loan for a car.
|Lender||Information||Max. Loan||To request|
|Review|| $ 200,000|
Interest (APR) 2.39%
|Review|| $ 50,000|
Interest (APR) 1.29%
|Review|| $ 50,000|
Interest (APR) 3.6%
Loan for car purchase
When buying a car, it is of course important that the loan sum is matched to the purchase price of the car. With regard to the loan sum, flexible options are available, so that, for example, up to 110 percent of the purchase price can be obtained as credit. This gives the person who buys the car, for example, the opportunity to immediately use the extra money for the first period to pay the premium for the car insurance. The full purchase price can therefore be borrowed and, if desired, up to 110 percent can be borrowed.
What is the ideal car loan?
In US, certain banks use a certain credit formula when providing car loans. This is then done in the form of an installment loan . With such a personal loan, the vehicle does not have to be used as collateral to borrow money . If the car is purchased on the basis of financing from the car dealer, it may be an installment sale.
With this construction, the car dealer will remain the owner of the car until the full amount is Demorei. In addition, a so-called balloon contract is also used . Which option is the most ideal will depend, among other things, on the situation, but a car loan in the form of an installment loan may be the most suitable for the purchase of a car.
General conditions for car financing
When determining the maximum loan amount, the age of the car can be taken into account. The maximum term and the amount of the annual cost percentage are also important. It is generally the case that less strict conditions apply to a car loan for a new car or for a car that is not older than two years. If a second-hand car is bought that is at least five years old, it will be less easy to get a favorable car loan with a favorable annual cost percentage.
It also looks at personal creditworthiness , such as income and possible debts. The car credit is provided on the basis of the invoice from the seller of the car, so that the bank can verify that the loan is actually intended for the purchase of a car.
Compare car loans
To find the most advantageous financing for buying a car, it is wise to compare car loans. It is first important to determine how much money can be borrowed on the basis of the income or the amount that is intended for the car. In any case, when taking out a car loan for a new car, 3.5 percent APR as an average and 4.5 percent APR as an average can be assumed if it concerns a used car older than two years.
It is certainly useful to request multiple quotes online, so that a comparison and a choice can be made in an easy way.