Cheap car credit: how to get one at the best rate?

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Associated with a service pack or subscribed independently, it is characterized by a very wide variety.

In this context, do you know how to obtain the best conditions for your car loan, whether it is contracted with a dealer, a banking establishment or even a credit organization?

What is auto credit?

What is auto credit?

A “car loan”, when it is specifically named as such by the lending organization, logically belongs to the family of affected loans. It consists in granting to the borrower a sum of money specifically intended to cover the purchase of a four-wheeled motor vehicle.

Why choose a car loan?

Auto credit has become essential for the purchase of a new or used vehicle. It allows you to quickly become the owner of a vehicle, without having to wait for sufficient savings and without losing your cash.

The granting of credit and the actual purchase of the vehicle are inextricably linked : if the delivery of the car, for one reason or another, is canceled, the car loan is null and void and the borrower does not therefore has nothing to reimburse. Conversely, a borrower who cannot find a lender may cancel the sales contract without charge. Finally, an assigned car loan only begins to be reimbursed upon receipt of the vehicle by its owner.

Note that it is also possible to acquire a car by taking out other forms of less supervised loans.

What are the main characteristics of auto credit?

What are the main characteristics of auto credit?

A personal loan allocated to the purchase of a vehicle has several characteristics to which the borrower must be attentive. We note for example:

  • the amount of the loan: together with the contribution, it must cover the entire purchase and associated costs (registration card, registration, start-up, etc.);
  • the duration of the credit: 36 months, 48 ​​months, 60 months, 72 months and up to 84 months, it has a direct influence on the amount of the monthly payment;
  • the interest rate: this is generally the first point of comparison for obtaining a cheap car loan. The booking fees must also be included in the calculation.

In all cases, a larger personal contribution makes it possible to decrease the amount to borrow and, consequently, to put you in debt a little less. Do not hesitate to postpone your purchase for two or three months if it would allow you to put an attractive sum on the table.

What are other types of auto loans?

What are other types of auto loans?

The affected loan is not the only avenue for an individual who would like to finance the purchase of a new vehicle.

  • The personal loan, because of its flexibility, is preferred by a number of borrowers. It makes it possible to request a sum of money of a certain amount without having to justify its use. No need, therefore, to produce a purchase order or proof of the same type. Be careful however: the borrower is also less protected, since a cancellation of the sale will not commit him to repay his credit. Also, note that the interest rates on a personal loan tend to be a little higher than those for a restricted loan.
  • Rental has tended to develop very rapidly for several years. Rental with option to purchase (LOA), long-term rental (LLD) and balloon credit are the three versions. We no longer speak of monthly payments of credit, but of rents. The driver is the tenant of his vehicle. Please note: in LOA and balloon credit, it is possible to buy back the vehicle at the end of the contract, which is not the case for the LLD.

“Motorcycle credit” is another type of credit used for consumption. Very similar to car credit, it is also characterized by the loan of a sum of money by the bank for a specific purpose, namely the acquisition of a motorized two-wheeled vehicle (motorbikes, but also scooters or motorcycles ). The conditions of validity or cancellation of the credit are exactly the same as in the case of a car.

Cheap car credit: how to make the right choice?

Difficult to sort through the jungle of formulas all wanting to be more enticing than the others. However, it is possible to compare different car loan offers effectively by limiting oneself to a few determining criteria :

  • The total effective rate (TEG), expressed in the form of an annualized percentage, reveals the total cost of the credit, that is to say the sum of the interest payable at the nominal rate and the possible handling fees “Commissions” or “miscellaneous costs”. The latter can increase the cost of credit considerably, and it is therefore important to monitor them. The TEG could also be expressed in the form of a precise amount in dollars, the total cost of the credit, which will represent the difference between the total amount reimbursed by the borrower and the amount originally borrowed.
  • The duration of the credit is counted in months. For an equivalent loan amount, a longer term is equivalent to lower monthly payments, but also to a higher total cost of credit. In any case, it is recommended that you do not borrow for more than five years (60 months), which corresponds to the most conservative estimate of the life of your future vehicle. It is however possible to make a car loan up to a duration of 84 months in certain cases.

Car credit insurance: is it compulsory?

Loan insurance is not made compulsory by law for consumer credit and therefore for car credit. If the amount borrowed is significant in terms of your income or your savings, it is however recommended to insure yourself at least against death and total incapacity for work. The credit can thus be fully or partially reimbursed and you and your heirs will be protected.

Cheap car credit: how to find the best rate?

Cheap car credit: how to find the best rate?

When buying a vehicle, finding the best deal for your car loan is sometimes a real challenge. Depending on your personal situation, the financing organization you choose, the promotional offers, the amount of the loan and the duration of the car loan, interest rates can vary significantly. Based on this observation, how do you know if the proposal you have obtained is interesting?

What are the best auto loan rates in 2019?

In order to compare the different car loan offers, it is essential to base yourself on comparable proposals in terms of the amount and duration of the loan. The APR is the preferred indicator to compare offers between them: it allows to take into account all costs related to credit. To give you a first idea, refer to the following table indicating the best rates it is possible to obtain in 2019.

 

Minimum APR

Average APR

Maximum APR

Car (and motorcycle) credit

0.99%

1.98%

4.40%

Best APR in 2019 for a car loan of $ 15,000 over a period of 12 months

In any case, do not hesitate to play the competition and turn to other players than traditional banks: take out a cheap car loan online is quite possible and very often saves money.

Example of a car loan simulation in 2019

In order to budget your project and to be able to know the amount of car loan that you can make, borrowing simulations are particularly recommended. For example, buying a car for $ 15,000 at an average interest rate of 1.98% represents the following monthly credit payments:

  • 24 month auto loan: $ 637.97 per month;
  • over 48 months: $ 325.30 per month;
  • over 60 months: $ 262.79 per month.

The duration therefore greatly varies the share of the monthly budget allocated to financing a new or used car. It is necessary to take a certain margin to integrate the rest of the costs: maintenance, petrol, vehicle insurance, etc.

Cheap car credit: where and how to borrow?

Cheap car credit: where and how to borrow?

Auto loans are offered by three main categories of lenders.

  1. Firstly, the car dealers themselves have an undeniable practical advantage: you can take out your car loan at the same time as you sign the contract for the sale of the vehicle. These loans, moreover, are very often integrated into a “pack” offering many other services, including vehicle insurance, breakdown assistance, an extension of guarantee or a vehicle maintenance subscription.
  2. Your bank, too, necessarily has an offer in terms of car loans. It is therefore recommended to make an appointment with your advisor to explain your project and examine the loan offer that will be made to you. This option is generally less expensive than a concessionary loan.
  3. Organizations specializing in auto credit, finally, have a wide range of formulas for the purchase of a personal vehicle and generally offer to take out auto loans at advantageous conditions directly online.

The methods of taking out a car loan are relatively simple. All you need to do is provide a photocopy of your identity document, a recent proof of address, a bank statement, proof of income or resources (salary slips, account statements, etc.) and of course a copy of the voucher. vehicle control.

How to buy cheap auto credit online?

In view of the profusion of loan offers from banks, dealers and credit organizations, the future driver has a large margin of maneuver to compete and choose the most competitive loan. Different online car loan comparators are able, from certain information related to your project (amount to borrow, type of vehicle, etc.), to instantly provide you with the list of the most interesting lenders.

With differences in TEG of up to 2 to 3% for the same financing, it is imperative to take care of the selection of your car loan at the best rate.

How long do you last at the Credit Bureau in Mexico?

There are still many doubts related to the Credit Bureau. Surely most of us sometimes ask ourselves: how much time does it have to pass before debts stop appearing in the Bureau? And why in some cases follow the registration even when we already liquidate?

This is the first thing we should understand:

This is the first thing we should understand:

What is the credit bureau, what is it for, and why is it good to appear on it?

Well, it is good because that means that you are a subject of credit and that you have a very useful cover letter when you decide to apply for a loan to a credit granting institution.

The Credit Bureau is a Credit Information Society (SIC); An independent company of financial, commercial or governmental institutions, which collects information on the handling of credits that any natural or legal person has had.

But what is the Credit Score?

But what is the Credit Score?

It is a score that estimates the risk of default that a grantor assumes when granting you financing and is calculated taking into account relevant data about your behavior. Among them:

  • How many credits have you applied for?
  • Number of accounts you have active?
  • If you have been late in payments or if you have been a good payer.
  • What is your ability to pay and debt?
  • Breaks, that is, how many times have you stopped paying?
  • Settlements, that is, if you settled the debt at a discount through any deal.

This “rating” can range from 300 to 850 points. From 650 onwards it is considered a good rating, but the higher it is, it will mean that you are a person that entities can trust when you apply for auto, mortgage, business financing, etc. However, if it is very low, it will mean that your behavior as a payer in previous credits is not the most reliable.

Now, since we have a clearer picture, let’s return to the questions with which we started this text: how much time does it have to pass before debts stop appearing in the Bureau? And why in some cases follow the registration even when we already liquidate?

Depending on the amount of your debt is the timing of the registration:

  • When debts are less than or equal to 145 pesos, they are eliminated after one year.
  • In case of major debts between 145 to 2917 pesos, they are eliminated after two years.
  • If debts greater than 2917 to 5835 pesos, they are eliminated after four years.
  • Finally, those that are greater than 5835 pesos, are eliminated after six years as long as they are less than 2 million 334 thousand 063 pesos, the credit is not in judicial process and / or you have not committed any fraud in your credits.

If you had delays or defaults, you don’t have to wait for the information to be erased to improve your credit history. If you catch up, this will be reflected in the Bureau and will show that you are complying with your payments.

There are also cases in which the backlog is so large and the debt has grown to the extent that you can reach an agreement with your creditor. This pact is known as removes and, if you decide to do so, your registration will be deleted until after 6 years.

What is a remover?

What is a remover?

The “take away” is an agreement between the lender and you through which you agree to pay a percentage of your debt and the creditor, to give up on the rest of the capital you lent.

This means that, if you decide to liquidate by means of a withdrawal, you should be aware that this situation will be recorded in your Special Credit Report with the legend 97, which means “account with partial or total debt without recovering” and that will result in A bad note in your history become a credit subject again.

How to get a Digital loan? – The fully digital loan

Financial bottlenecks arise for almost everyone at some point. Loans are one way to preserve financial freedom. You can get these at almost every house bank, but the conditions are not always easy on the budget. They sometimes do worse than online loans. Those who are clever look for a financial injection on the Internet.

Many providers bustle here who promise fast money at low-interest rates. But be careful! The tariff jungle only clears up after studying many loan offers. Good Credit makes it easy for you to find the right loan. We compare the conditions of numerous financial institutions for you. So you are on the safe side to get the best interest rate.

Good Credit: Transparency makes the difference

bank

The Internet offers numerous ways to find a loan, but there is often a catch: Not all providers work seriously. Anyone who gets involved in dubious offers quickly ends up in the cost trap from which people who are already in debt are difficult to get out.

It is better to keep a clear head from the outset and to scrutinize the conditions meticulously. Good Credit supports you in this. We only compare the loans of renowned financial institutions for you.

Digital loan: the smart option for ordinary loans

Digital loan: the smart option for ordinary loans

Banks have come under pressure from persistently low-interest rates in recent years. To remain competitive, they need to realign themselves and offer customer-oriented financial services. Your advantage, because competition stimulates business. Financial institutions are currently convincing with complex loan offers at top conditions. However, as in many other areas, only those who keep an overview and do not allow themselves to be carried away by the first offer will make the best cut. It is no different when it comes to choosing insurance, mobile or internet tariffs.

No two loans are the same because there are many different models. That’s a good thing because in the end, you benefit from a tailored online loan that suits you and your financial situation. Digital credits score above all thanks to the convenient and transparent application process. Every step from the request to the legitimation to the final digital signature is processed online. The way to the bank and time-consuming discussions with the customer advisor are no longer necessary. They particularly benefit from the fast credit approval process.

Video identification process and digital signature

Video identification process and digital signature

The online loan is characterized by two important points: the video identification process and your digital signature. While you sit across from the customer advisor who sometimes knows you personally when visiting a bank, this is not possible when applying for a digital loan. The person responsible is dependent on tools that confirm your identity. The online video identification process is used for this. With the help of video chat, you can show your conversation partner your current identification card or passport.

You must also be visible on the agent’s screen. All you need is a stable internet connection and a device with a built-in camera such as a smartphone, tablet PC or notebook. It should also be equipped with the latest version of your favorite browser to avoid interruptions in the transmission. The video identification process generally runs on a secure site so that third parties have no access to the sensitive data. It doesn’t matter where you apply for the loan from. Either from your home PC, from your workplace or on the go.

A signature is the handwritten and personal signature of documents of any kind. It only makes contracts legally binding. In the bank branch, you use a ballpoint pen for this, in the virtual world, of course, it doesn’t work. This is where the digital signature comes in, which is generated using computers or smartphones. On iPhone, iPad or Mac, you can edit and sign documents directly in the Mail app. Android, unfortunately, does not offer onboard tools.

An uncomplicated option for digital signing is the “Fill & Sign” app from Adobe. It can be easily installed on any smartphone, after which you can create signatures in no time. Unfortunately, only up to five signatures per month are free. Adobe Reader is ideal for Windows computers. In the free program, you can deposit your digital signature with just a few clicks so that you always have it at hand.

Good Credit: No longer search for a customized digital loan

money

Determine how high your online loan is. What you use it for is up to you. Whether small amounts or large sums: The installment loans listed at Good Credit are just as suitable for necessary purchases as for temporary financing of real estate or for debt rescheduling.

If there is a lack of money for your next vacation trip, you have many options. Tip: You can select the intended purpose from us while searching for a provider. Some banks grant you special conditions for earmarked loans. If you would like to finance a new car, for example, just indicate that.

Finding a loan is so easy:

  • In the first step, determine the amount required (e.g. a 10,000 euro online loan) and determine the term of the digital loan. You can choose from twelve months to ten years. You can also specify a purpose. Start the search by clicking on “Compare now”.
  • We then list all financial institutions that offer loans under your chosen framework. The conditions are immediately apparent in the table. Compare the selection based on the monthly loan installments, the borrowing rate, and the annual percentage rate. If a loan offer appeals to you, just click on “continue” to view further details.
  • If the targeted loan is exactly right for you, then enter all the data for the loan application on the following pages.
  • A credit check is essential at reputable financial institutions. Therefore, you are asked to provide proof of your income and expenses. Since you are applying for a digital loan, this is done by accessing your existing online bank account. You don’t even have to look up your printed bank statements.
  • If all data is available, you have to authenticate yourself using the video identification process. It is only used to confirm your identity.
  • The final step is the digital signature.

With our comprehensive loan comparison, you not only save time but also money. After successful verification, the desired amount will be transferred to your account in a short time. A working day usually passes between the loan application and the payment.

It cannot be assessed in the comparison of whether you also receive the best conditions and interests. It essentially depends on your credit rating. The better this turns out, the more likely it is to get a low-interest rate.