In the event that you wish to acquire a car, it is likely that you will resort to a car-motorcycle loan. In order to make this purchase under the best conditions and with the most suitable offer, it is necessary to choose the most suitable type of loan and the most interesting rate. Faced with the multitude of solutions offered, we give you some advice in order to choose the most suitable and the most advantageous to finance your car purchase. The car title loans come up with great support here.
Prepare your car purchase plan
As soon as you want to take out a loan to carry out a project, it is essential to precisely define your budget and what your debt capacities are. When purchasing a vehicle, taking into account the price of the vehicle is the key element to assess the feasibility of the project. To carry out this acquisition under the best conditions, several elements must therefore be taken into account:
- Vehicle price
- Budget available
- Debt capacity
- Repayment period
Taking these different elements into account will allow you to find the motorcycle car loan offer that best meets your needs and your project.
The auto-motorcycle loan: an affected consumer credit
Auto credit belongs to the category of so-called affected consumer loans. The law sets its maximum amount at € 60,000 and with a repayment period which cannot exceed 7 years. After examining the applicant’s situation (professional situation, income and debt ratio), it can be granted for the purchase of a new vehicle as well as a used vehicle. As assigned credit, the release of the borrowed amount is subject to the actual completion of the sale. The first monthly payment therefore only occurs after delivery of the vehicle. This implies that the sale and the loan are totally linked: the default of one leads to the cancellation of the other.
What type of auto-motorcycle loan to choose?
Systematically, car dealerships will offer you a financing solution. However, it is necessary to know that there are several types of auto-motorcycle credit which will be more or less adapted according to your situation and your project. Thus, for the purchase of a vehicle, several financing solutions exist.
Affected auto credit
This type of loan is intended specifically and only for the purchase of a car. When the vehicle is purchased, the borrowed amount is paid directly to the seller, thus allowing the borrower to become the owner of the vehicle. By opting for this type of loan, the buyer thus undertakes to reimburse the loan institution upon receipt of the vehicle.
Another possibility for purchasing a vehicle, the personal credit corresponds to a sum of money available at any time and which is not subject to any proof of expenditure. By subscribing to this type of loan, it is therefore quite possible to buy a vehicle with part or all of the amount borrowed. If this type of loan offers real freedom, its interest rate is however higher than a classic auto loan.