Want to change car?
If you have already chosen the new or used vehicle that you want to buy, various auto financing solutions are available to you.
Indeed, unless you have sufficient personal funds to buy cash, you will most certainly have to use auto credit .
The “car loan” belongs to the consumer credit family.
This is a trade name that corresponds to several forms of auto financing. It makes it possible to answer a need of financing whose budget is not negligible in most cases. For the acquisition of your car (city car, space, saloon, petrol or diesel) you can therefore opt for one of these different car credits:
- the personal loan , also called personal auto loan . This type of auto loan is used in particular for the acquisition of a used vehicle. This is a loan that you do not have to justify to a financial institution. The disadvantage is that if the vehicle is defective or not delivered to you, you still have to repay the car loan. The terms of the personal loan are therefore less interesting than a loan dedicated solely to auto financing;
- the assigned credit auto . This car loan is dedicated and directly attached to the acquisition of the vehicle. You do not repay the car loan if the car has not been delivered to you or if it is defective. This type of auto financing brings more security to the buyer than a personal loan. In fact, the repayment of the car loan begins only when the vehicle is received. In addition, if you do not get the auto loan the funding is canceled;
- the balloon credit . Unlike a conventional car loan, with the balloon credit you only repay a portion of the value of the vehicle. Your monthly payments are reduced. Alternative to the more classic auto credit, the balloon credit is an interesting solution if you want to change vehicles regularly. As with the Lease with Purchase Option (LOA), you have the option to acquire the property definitively at the end of the repayment period;
- the LOA (rent with option to buy) . This is a leasing contract: you rent the vehicle for a fixed period of time with the possibility, at the end of the rental period, to acquire it definitively. This auto financing formula is very popular and can be offered directly by the dealer or specialized lending institutions. It allows you to get behind the wheel of a new car and change it regularly. Monthly payments are fixed and provided for in the contract. It is possible to subscribe a LOA with or without contribution. At the end of the rental period, you will have to pay the remaining balance of the contract, extend it or return the vehicle;
- the LLD (long term rental) . It is not strictly speaking a car loan, but a financial solution that allows you to rent a new vehicle. A disadvantage is however to note: unlike the LOA (Lease with Option to Purchase), you can not definitively acquire the property at the end of the rental period.
Solution you choose to finance your car
Depending on your need for auto financing and your project, do not hesitate to perform a credit auto simulation on the Credither Guide to know the rate and conditions related to the financing of the car. Whatever solution you choose to finance your car, note that the amount of credit car is capped at 75 000 euros and you have a period of withdrawal of 14 days. It is therefore essential to compare offers before you commit.