October 16, 2019

How to make a car loan at the best rate?

How to make a car loan and get the best rate? This is the question that many future buyers ask themselves. It is indeed not easy to find your way between the car credit solutions of dealers, those of credit organizations or even banks. We will see that the simple fact of using a credit comparator allows us to see more c lair in its approach .

How to make a new car loan, in three steps

How to make a new car loan, in three steps

There are several essential questions to ask before asking yourself how to make a car loan:

  • What is the model of the vehicle (new, used), and its cost?
  • Is it better to opt for a classic car loan or an LOA solution?
  • Where to find the best cheapest car credit rate?

 First of all, you should know that car credit is a loan with proof of purchase (purchase order) . You must turn to a personal loan without proof to finance a vehicle (car credit, motorcycle, etc.) without having to justify yourself to the financial organization. This detail past, let’s focus on a good method to make sure you find consumer credit for cars.

* The APR (annual effective annual rate) is used to calculate the real cost of a car loan, including any administrative costs. It is the only reliable indicator for car credit. Our comparator is therefore based on the APR to rank the best credits.

1 – Identify the vehicle and its reimbursement capacity

It is important to know how much to borrow to make a cheap car loan. The APR rates offered by the various market players are different depending on whether it is a new or used car loan.

Regarding the LOA (rental with option to buy), you should know that it mainly responds to individuals wishing to change vehicles regularly, who have to drive a lot. Our opinion on the LOA shows how much its cost can go up. Its cost is also regularly masked by the fact that it is never associated with a rate. However, the APR rate is always present on a classic car credit solution. It is precisely thanks to this rate that we will find out how to make the cheapest car loan possible.

2 – Compare, to make a cheap car loan

The comparison of different credit offers is an essential step to make a car loan without paying too much interest. The best way to get cheap auto credit is to first compare online credit deals . The specialists all offer solutions adapted to the purchase of vehicles (Sofinco, Cofidis, Cetelem car credit, etc.). Our experience shows that credit agencies generally hold the best auto loan deals. Take the example of a 10,000 USD car loan to illustrate our point.

Comparison of car loan rates

The comparison * below is intended to compare the rate of the best credit organization with that posted the same day by other actors of the car loan.

It is rather rare that a dealer offers a more attractive car loan rate than that of the best online organization. The best course of action is whatever happens to compare credit deals online. This allows both to get an idea of ​​the best rates, but above all to hope to get a first answer in principle. It will then be much simpler to approach potential other auto credit players (banks, concessions, specialist insurers).

3 – Make a car loan: how to get an agreement in principle?

Seeing an attractive rate appear has no interest whatsoever if it is inaccessible or reserved only for certain borrowers. This is why our new car credit comparator was designed to offer both:

  • The best APR rate 
  • Immediate notice without obligation
  • The possibility, in case of refusal at the best rate, to question several organizations

Make a used car loan

Make a used car loan

Two solutions are available to future buyers of a used vehicle:

– Opt for a used car loan (+ 2 years on our comparator)

In this case, it is the same principle as when it comes to making a new car loan. The rates are however very slightly higher. This is explained by the fact that the lender has fewer guarantees regarding the real value of the property, in the event of bad repayment.

– Choose a personal loan without proof

The personal loan without proof is the most suitable product for making a car loan without having to justify yourself. This type of loan is therefore ideal for financing a vehicle spotted on a classified ads site. The rates, on the other hand, are slightly less attractive than those for new or used car loans. Please note, nothing links to obtaining the loan for the purchase of the vehicle. You must take all precautions and anticipate the request, otherwise the car will pass under your nose.

Compare rates, how does it work?

Compare rates, how does it work?

Our comparator makes it possible to sort between good auto loan offers and those to avoid. The procedure is simple:

  1. Indicate the type of car loan (new -2 years or used car loan), the amount required and the desired repayment period.
  2. Complete a questionnaire in four basic steps (identity, address, location, income) and four to five minutes.
  3. Our comparator provides an immediate answer in principle, without obligation.

A favorable opinion results in an acceptability rate higher than 50%, while a rejected credit displays a rate lower than 5%. We always classify organizations on the sole basis of the APR rate, with a view to making a car loan while limiting interest as much as possible.

written by Michael Files - Posted in Car loans