Buying a car: how to choose your credit?

While it is now relatively easy to get a car loan, it is still important to compare before starting. Some offers may seem enticing, but adding for example the fees and insurance, the monthly payment is not the same at all. It is therefore strongly advised to prepare your project by choosing the credit best adapted to your own situation.

The duration of the loan

To reduce his monthly payment, one often chooses to extend the duration of a car loan. If this option can be interesting in case of acquisition of a new vehicle, it is advisable to remain vigilant when it is about an old vehicle and in particular kilometer. The risk is indeed to find yourself quickly with a car out of service, while the loan is still not refunded. If your budget also requires you to take out a loan again to change your car, you may have to use a loan consolidation, which will further increase your monthly payment. Some organizations tend to easily lend this kind of loan, so it’s best to think carefully before subscribing.

The type of loan

The assigned loan is the best way to refinance an auto if you want to own it. Since the credit is linked to the purchase, it can not be used for anything else and the sale is canceled if the creditor refuses. The personal loan makes it possible to obtain sums greater than the value of the purchase. Its obtaining is not conditioned by a precise purchase. Other solutions such as the LOA (lease with option to buy or buy now pay later car loan) or the LLD (long-term lease) can finance a car for a monthly payment fixed in advance. If the LOA makes it possible to become owner at the end of the contract – amount defined in advance -, the LLD obliges the restitution. These two formulas have the advantage of being able to circulate with a new or recent vehicle against a predefined rent. It is important to analyze the various offers available on the market and to choose the one that will be best adapted to your situation. For example, for the purchase of an old vehicle, a short-term loan will be more appropriate.

Good to know: The assigned loan and the personal loan make it possible to become a direct owner of your car, which allows a possible resale. In the case of LLD, the property is excluded. The LOA allows you to become owner only at the end of the contract, subject to the payment of a last rent often important.

Compare different offers

The auto loan offers are numerous and can hide some unpleasant surprises, although attractive at first sight. Some criteria should be analyzed before going head-on. – The TEG : interest rates being very variable, the TEG will give you an indication of the cost of your financing. – Duration : some credit formulas may offer lower monthly payments, but sometimes with longer duration. – The possible contribution : in some cases, having a contribution can considerably reduce the duration and the amount of the credit. – Fees : they are rarely mentioned in advertising offers and can increase your monthly payment. –Compulsory insurance (or not) : insurance is not always compulsory, but can be useful in case of life incident. Its cost varies from one institution to another. Do not hesitate to compare. – Monthly payment : depending on your situation, your budget, it will be necessary to adjust the monthly payment. Be sure not to exceed the maximum recommended debt ratio of 33% in all credits. A credit, yes, but not at any price. Since credit institutions do not all have the same criteria for over-indebtedness, some lend loans a little easily for issues of numbers. Do not get trapped.

Key points to remember: – Choose a solution adapted to your own situation. – Be sure to be able to repay your loan. – Feel free to compare offers.

The post Buying a car: how to choose your credit? appeared first on Muscle Car Facts.net.



from Muscle Car Facts.net http://bit.ly/2RlRk7D
via IFTTT

Comments

Post a Comment

Popular posts from this blog

Buying a car: All what you need to know

The purchase of a car represents, after housing, one of the most critical expenses for a domestic economy. Many people consider the car, like the residence, as a yardstick of the success and social status of its owner. Therefore, many get into serious financial problems when trying to spend at home and car beyond their means. But from the financial point of view, there is a lot of difference between these two purchases. The acquisition of a home is an investment because, under normal conditions, real estate is revalued over time. Normally, although it takes many years to pay the house, in the end its value is higher than when it was purchased, resulting in a profit if it is sold again. On the contrary, a car loses value from the moment it leaves the dealership. It is not an investment, but a consumption expenditure. Stretching the budget to the limit to buy a home is dangerous, but if one manages to pay well all the fees in the end receives a good reward. Stretching the budget to the
Read more

Car loan simulation

Do you want to do a car loan simulation, for example because you are curious about the costs of your credit? Make sure that you indicate in any case what amount you want to borrow and at what interest rate you can do that. In addition, make a choice from an installment loan or a credit opening, as these variants will entail different conditions. Online car loan simulation Thanks to the online car financing simulation you can easily look for the cheapest option. Compare different car loans with each other, based on the Annual Cost Percentage (APR) that you pay there. In this way you get an overview and picture of the costs you can count on. Did you know that a small difference in the interest rate with a term of, for example, 4 years can easily ensure that you can save up to several hundred euros in costs? The differences may sometimes seem small, but thanks to a car loan simulation you can easily find out what you can save. Cheapest car loan Do you want to take out the cheapest
Read more