Cheap auto credit comparator
There are many solutions to finance the purchase of a vehicle. Finding a cheap auto loan requires taking the time to compare the different offers in order to find the one that will best meet your needs.
What is an auto credit comparator?
If you do not want to go through the paid services of a broker but if you still want to compare the different offers on the market, you can use an online credit comparator. These allow you to have a global view of the various auto credit proposals so that you can compare them and find the most advantageous. This will increase your chances of finding cheap auto credit.
What elements are the auto credit comparators based on?
The comparison method used by car loan comparators is based on the APR which is the annual percentage rate. The APR is made up of the interest rate of a loan but it also includes the various costs (administration fees), commissions or any remuneration. It is a tool which makes it possible to obtain the real cost of a loan. Thus, this represents the best technique to compare the different auto loan offers that are on the market. The consumer can then have a global view of the proposals on the market in order to have the possibility of finding the cheapest loan.
The APR can be influenced by the age of the vehicle that the consumer wishes to buy (whether it is new or used) but also by the situation of the borrower as well as the duration he chooses for his credit. As a result, the annual percentage rate that can be seen on the various offers presented by comparators is only indicative and may vary according to certain criteria which will be defined subsequently. However, this remains a very good indicator of the cost of a loan since the difference will not necessarily be very noticeable.
By using an auto credit comparator, you will often be able to see the monthly payments you will have to pay for your credit. They depend on the rate as well as the duration of the loan. The total loan amount is also often displayed on auto credit offers. This includes the total amount borrowed to which will be added the annual percentage rate of charge.
Carry out your online procedures for a cheap car loan
Some auto credit comparators not only compare the different offers on the market but also make an in-depth study of the future borrower's file and send it to one or more financial organizations of their choice. This represents a considerable saving of time because it is then enough for him to select the agencies proposing the offers which best correspond to his expectations as well as to his situation.
First of all, it is a question of carrying out a loan simulation by entering certain information necessary for the study of the credit application file. The borrower must therefore specify whether he wishes to acquire a new or used vehicle, then enter the amount necessary to finance the purchase. It is then necessary to decide on the repayment period. It should be noted that this considerably influences the annual percentage rate of charge. Indeed, the longer the duration, the higher the APR will be (but the monthly payments will be lighter). On the other hand, if the borrower can afford to pay higher monthly payments, he can choose a shorter duration for his credit which will reduce the APR and therefore the total cost of the loan.
Then, the borrower will have to communicate certain information about himself (family, professional, banking situation…) so that the lending organizations can best study his request. It should be noted that if he is registered with the FCIP (file of incidents of repayment of loans to individuals), he will have great difficulty in finding an organization that is ready to grant him a loan. The same is true if its debt ratio exceeds 33%.
Once all the necessary information has been entered, the auto credit comparator will present the different offers that may correspond to the situation as well as to the expectations of the consumer who will then only have to choose those he finds the most advantageous. His file will then be sent to the organizations in question, which will often allow him to obtain an immediate response in principle. Following this, a credit contract will be sent to him and he will have to sign it then return it to the agency, attaching the supporting documents requested (it is also possible that he will receive several contract proposals in which case he will have to choose the one that best suits it). A definitive answer will be communicated to him following an in-depth study of his file and then the funds will either be released to his bank account or directly to the seller from whom he makes his vehicle purchase.