New or used car credit is offered by dealerships, online credit organizations, banks and even several insurers. Everyone wants their share of the cake, but who really offers the best rate? Comparison and solutions to obtain the lowest car credit rate.
Where to find the best car credit rate?
There are many ways to get a car loan, but how many borrowers can claim the best rate? Here are the different ways to get a loan.
- Online, through credit agencies
- In car dealership
- From a bank or an auto insurer
Whether it is a new or used car loan or not, you must always provide a vehicle purchase order to obtain the loan . The car loan is indeed a loan dedicated to the purchase of the vehicle. When it is impossible to obtain a purchase order, as in the case of a purchase from an individual, it is to a personal loan without proof that we must turn.
Car credit rate: always in APR
The APR rate is the benchmark indicator for finding the best car loan. It is always a fixed APR rate, indicating that it cannot change once established on the credit contract. The APR rate of a car loan makes it possible to calculate the cost of interest, but also of all additional fees. For example, a lender offering a solution with application fees must include the cost in the APR rate.
Comparison of car loan rates
Is it more interesting to apply for a car loan online or to go directly to a dealership? Take the example of financing a city car, the Clio, and compare the car loan rates offered by Renault with those of online specialists, a renowned insurer (Maaf) and two conventional banks. The Clio Trend was displayed at $ 15,300 on the Renault site at the time of our visit. We choose to simulate a new car loan without contribution in 48 monthly payments to finance it.
The best car loan rate is from the best online specialist from our comparator . DIAC, the financing branch of the Renault group, offers a car loan rate that is much less attractive than that of the best organization in our comparator. It is even worse than that of the banks subject to our comparison. The first competitor of our best credit organization is Maaf, specialist insurer. On the other hand, it is impossible to obtain an answer in principle in order to know whether the rate indicated will indeed be that proposed on the final contract.
Classic car loan or LOA: what difference in rates?
Our opinion on LOA is negative, since the rate is never indicated . It is mainly a rental: the borrower in no case owns the car. He can only become its owner once the purchase option has been exercised, at the end of the rental contract. Our comparison “LOA, LLD, car credit: which is the cheapest? Reveals that an LOA formula is a priori always more expensive than a new or classic used car loan. LOA formulas appeal to many French people, thanks in particular to the promise of affordable rent. However, they raise many questions. We prefer a car loan, even with a view to renewing the vehicle after three, four or five years.
Getting the Best Car Credit Rate in Three Steps
There are three simple steps to ensure you get the best car credit rate. The two watchwords are comparison and negotiation to find the best credit for buying a car .
- Use a credit comparison tool to find the best new or used auto credit online . Our comparator makes it possible to identify the best offer, but above all to obtain an immediate response in principle.
- Receive the non-binding credit contract by email or post and check the final car credit rate carefully.
- Ask your bank or the dealer about the rates offered, based on the best offer already obtained on the internet.
It is a simple method to simply get the best rate. Our experience – as evidenced by the comparison above – shows that banks and dealers generally do not have the means to offer car credit rates as attractive as those of the main organizations (car credit Bankil, Yoabank, Bankate, etc.).
Car credit, the pitfalls to avoid
Here are all the pitfalls to avoid when considering financing a new car:
- Beware of auto credit rates 0%. Some dealers do not hesitate to offer promotional offers at the 0% car credit rate. Without going to say that there is necessarily eel under the rock, a free car loan in dealership can hide a high price on the car itself .
- Always rely on a final opinion and not a simple simulation. The APR rate is sometimes different between the time of the simulation and the final proposal.
- Check the mention “purchase on credit” on the order form of the car. This indication makes it possible to cancel the credit if it is not finally obtained. The opposite is also true: credit is canceled if the sale is not carried out.
- Be wary of LOA solutions , always verifying all the costs of the rental contract (mileage, guarantees, maintenance, etc.) as well as the amount of the purchase option.