Buying a new or used vehicle: what type of financing?

To find the ideal financing method when you want to buy a new or used vehicle, you need to undertake a car credit simulation. This solution makes it possible to compare offers by considering the amount of the refund as well as the total interest of the sums to be paid.

Forms of borrowing to finance the acquisition of a new car

To buy a new car, you can take out a personal car loan. This loan allows you to benefit from a loan without having to allocate it directly to the operation. Although this credit gives more freedom, this offer does not benefit from any protection in the event of cancellation of the transaction. Nor is the offer entitled to the advantageous conditions obtained thanks to the car loan rates. The new car package includes the loan to buy a car as well as maintenance, assistance and credit insurance.

What about new or used car loans?

Although it is quite possible to buy a car for cash, this type of service is not available to everyone. To facilitate the acquisition of an automobile, it is recommended to take out a car loan. This method of financing allocated to the acquisition of the car allows the amount of a new or used car to be partially or fully reimbursed. As a security measure, the refund of the credit only starts when the car is received. A new car loan can be taken out with a banking institution or by visiting a manufacturer or dealer. To take advantage of the best offer, it is strongly recommended to carry out a credit simulation.

Buying a car with a LOA or balloon credit

Initially, leasing with an option to purchase (LOA) was a formula dedicated primarily to the purchase of a new vehicle. Consumers who use the LOA rent the car for up to 72 months. At the end of the rental period, the driver benefits from a reduced offer to purchase. The price offered to buy the car considers the rents already paid. The balloon credit represents a mixture between the assigned credit and the LOA. The repayment period can extend over a period of about 1 to 4 years. Some balloon loans encourage the tenant to pay an unrecoverable amount when the loan expires. The amount represents 5 and 20% of the amount of the car.