Car increasingly financed with a loan – Mini Credit Requests
May 1, 2019
Not many consumers are able to purchase a car from their own resources. The purchase of a car is therefore usually financed through a personal loan. This loan has the characteristic that it must be repaid within a certain period, usually within 60 months. There are online financiers who specialize in car loans such as Autolening.nu and Afab. The difference with regular lenders is that they have a database with relevant information about residual values and current values of cars in connection with the cover value of the loan.
Find the suitable car loan.
There is regular discussion about the most suitable loan to buy a car. The specialists believe that a personal loan is the most suitable loan form to finance a car. This is related to the obligation to pay off monthly and to pay the entire amount within 5 years. As a result, the debt amount falls together with the depreciation of your car, so that the coverage value remains the same. Otherwise you will be left with a larger debt and a lower value in terms of car, which is less positive.
Hire purchase of a car.
Hire purchase is also a form of borrowing, although many people think that this is not the case. When you buy something on a hire-purchase basis, you talk to the person from whom you buy the car that you pay the amount you owe him in installments. In contrast to buying on installment, however, the rental car only becomes your property if you pay the last installment of the amount you owed the suppliers. When paying, you are the owner of the car from the moment you left the showroom with the new car. A new variant is the so-called private lease with which you can lease a car in private and of which you do not become the owner. However, the advantage is that you can also use private lease with a negative BKR registration.
Used car versus financing new car.
A second-hand car that has its head is often financially more attractive to purchase, but financing is not always easy. An average lender would like to finance a new car, but a second-hand car of only 2 years old is already becoming more difficult because it is assumed that the average duration of a car loan is 5 years and the lifetime of a car is 5 years. It can therefore be difficult to finance for 5 years with a life span of 3 years!
Arrange your loan yourself
When purchasing a car, you will often be given the option of taking out financing for it. Although this seems easy, the loans are often expensive: high interest rates and administration costs are often charged. Make sure you request at least 1 alternative quote to be able to evaluate the seller’s offer.
When taking out a loan you do not have to go ice-cream overnight. After all, you do not normally buy the very first car that you come across at the car dealer you look at and compare. All this is easy, free of charge and without obligation via the internet. It takes you fifteen minutes to complete various application forms at the various providers.