Auto credit comparator simulation
Need a car?
Need money for a car? Yes, auto credit is an appropriate solution. It's a great way to afford a car without breaking the bank. All you need to do is borrow a reasonable amount, which you will be able to repay within a specified period. To do the best, it is recommended to learn about the different existing credit offers and this is where loan comparators and their online simulations will come into play.
When it comes to applying for a loan to invest in a vehicle, 2 types of loans will be offered to you at first glance: The affected auto loan and the personal auto loan.
The affected car loan is granted under conditions directly linked to the purchase of the vehicle in question. The financial institution will release the necessary sum for the purchase of the property, neither more nor less. It is a particularly secure loan. In the event that the sale is not made, the auto loan is canceled. The same applies if the vehicle is non-compliant.
The personal auto loan is a freer loan for the acquirer since it is not assigned to a specific asset. However, the credit will not be canceled in the event of non-compliance of the product. This means that even if the vehicle is not purchased, the payment of the credit and the monthly repayment installments, not being linked to the purchase, will still take place.
In both cases, the amount borrowed may not exceed € 75,000 and its repayment must be made in at least 3 months. No maximum repayment period has been set to date, however this very rarely exceeds 7 years.
How to make the right choice ?
When it comes to choosing a car loan, it is possible to contact a bank, a financial institution, but also directly to the dealer. Dealers can offer auto loans that they have previously negotiated and selected. In all of this, it can be difficult to determine the best option.
Online credit comparators and simulations are here to help. Whether it's identifying the ideal credit or just getting an idea of the market, many comparators offer credit simulations. This allows the buyer to have a generalized view of the different sums that can be advanced to him and the different monthly payments that he will have to repay.
During the simulation, you must indicate the type of property desired (car, motorcycle, etc.), the necessary amount of credit, and the monthly payments to then know the repayment period and the total amount, interest rate included. It is thus possible to play on the interest rate and the final sum by evaluating your ability to repay the loan.
When it comes to a simulation at a comparator, the latter will offer you a list of the most interesting auto loans with their characteristics: Minimum and maximum amount of the loan as well as the minimum and maximum repayment period, all of this. usually accompanied by a classification. After selecting one of them, you can simulate the different scenarios of this credit.
In addition, some comparators offer a purchasing capacity simulator and a debt ratio simulator allowing you to assess your ability to borrow and repay.
Practical case :
Take the example of Paul and Marie, a 25-30 year old couple who want to invest in a new car. They have already spotted the car of their choice and know that they will have to borrow the sum of € 13,500. Given their income, they can commit to repay monthly installments of € 300 per month.
Through online simulations, they discovered that they will have to settle monthly payments for 4 years to reach the end of the monthly payments. Over the course of their research, they focused on 2 organizations whose offers offered no administration fees.
For the first organization, the reimbursement will be made with monthly payments of € 300.91 spread over 48 months and a fixed rate of 3.36%. The total amount due in the end will therefore be € 14,443.23, or € 943.23 of interest.
In parallel, with the second organization, for the same amount borrowed of € 13,500, the monthly payments will be € 301.05 for 46 months. This gives a total amount of € 14,149, or interest of € 649.35 for an interest rate of 2.4%.
In the end, we therefore see that for monthly payments of € 0.15 more per month, the couple will save 1 month and especially € 300 after having repaid everything to the second organization.
Afterwards, the couple reviews their budget, realizes that they can consider monthly payments of € 400 and repeats the simulation. The interest rate drops to 2.2% and the interest that was € 650 is now only € 446. As a bonus, the loan will now be repaid in just 3 years.
To know :
- It is very well seen to arrive with a contribution when applying for a loan.
- Auto credit insurance is not compulsory but highly recommended.
- For hybrid or electric cars, the government pays a purchase bonus.
- It is sometimes interesting to monitor promotional offers on the market, especially in terms of interest rates.
- Hidden file fees can sometimes be hidden in loan proposals
- You must pay attention to revisable interest which may change during the repayment
- Another possibility, rather than applying for a loan, an individual can engage in a vehicle rental with option to purchase (LOA)