Auto credit, an essential tool for the automotive industry
Auto credit is consumer credit. It can be taken out with any financial institution, whether it is a bank, a company specializing in credit, or a financial subsidiary of a car manufacturer. By granting auto credit, the financial institution makes the funds available to the consumer, so that they can buy the vehicle whether new or used.
A car loan can be obtained by different modes of consumer credit. A consumer credit is a credit allowing its user to finance the acquisition of a good or a service, excluding real estate. By subscribing to a consumer loan, the person agrees to repay a repayable loan the amount of which may not be less than € 200, nor exceed € 75,000. The repayment period must be greater than 3 months.
Indeed, the ASF, the French Association of Financial Companies has identified 4 types of consumer loans. These types of loans include restricted credit, revolving or revolving credit, personal loan and rental with option to buy. The consumer can acquire his auto loan with each of these different types of credit.
Consumer credit has been the subject of several laws. Successive laws aimed at increasing consumer protection. This is to avoid the risk of over-indebtedness for individuals, and bad debts that would taint the balance sheets of financial institutions. Thus, all institutions offering consumer loans must comply with the regulations in force. In particular, the directive of the European Parliament and of the Council 2008/48 / CE of 23 April. To be applied in United States, this directive was published in the Official Journal on July 2, 2010.
It was at the beginning of the 20th century that the automobile industry began to take off. With this boom, and its industrialization, the automobile industry had to find the means to increase its sales. In fact, in view of the high prices of automobiles, there were few households able to acquire these vehicles for cash. To develop the industry, automobile manufacturers have created financial subsidiaries. These financial subsidiaries are called "captives", they have existed since the beginning of the 20th century, for example, in 1919, GM (General Motors) created its financial subsidiary. Financial captives are intended to provide consumers with auto loans. In doing so, they encourage consumers to equip themselves within their group. As a result, it allows their customers to finance a purchase they do not wish to make with cash. By financing the car loan of its customer, the financial captive can offer him its various services, such as vehicle maintenance, take-back commitment, different types of insurance, extended guarantees, assistance in case failure ...
So many services that appeal to many consumers. With its services, the financial captive allows the automotive group that owns it to build customer loyalty. Finally, financial captivity allows consumers to find in one place all the services they may need, auto credit, vehicle maintenance and insurance. Nowadays, financial captives represent a significant part of the profits of car manufacturers. In 2011, RCI Banque (Renault group) alone represented nearly 70% of the Renault group's operating margin. Today, in order to avoid running out of liquidity. And because of this, no longer being able to finance the vehicles of its customers, the financial captives have chosen to diversify their sources of refinancing by collecting household savings and issuing bonds.
The automotive industry in a few figures
In 1990, the number of vehicles produced worldwide reached 50 million. After peaking at 74 million units produced in 2007. The financial crisis has created a drastic drop in the number of vehicles produced. This financial crisis that began in the United States in 2007 had a direct impact on the automotive sector. Concretely, in 2009, the number of vehicles produced was only about 62 million.
The two major causes of this crisis were the increase in the interest rates of the FED, to which must be added the decrease in the value of household real estate. The financial crisis has affected the entire world economy, creating a wave of defaults, a decline in household consumption and business investment, a decrease in consumer credit and consequently credit. auto, leading to an increase in unemployment, recession ...
By leaving the financial sphere to contaminate the real economy, the crisis has hit all sectors of the economy hard. Whether it is the financial sector, real estate, or the automotive sector. The negative impact of the subprime crisis on the production and financing of automobiles explains the drop in outstanding auto loans observed since 2008. With the end of the crisis and the economic recovery, the automobile sector has recovered. Therefore, in 2013, the number of vehicles produced worldwide peaked at 87 million units.
In recent years, low interest rates combined with a drop in the price of oil have boosted the automotive sector. If in 2008 the annual average price of oil was around $ 100 per barrel, this year the price of a barrel fluctuates around $ 50. The fall in interest rates has reduced the cost of auto credit.
Today, China is the market that sells the most new vehicles, followed by the United States and Japan. In the United States, 9 out of 10 consumers finance the purchase of a vehicle with a car loan. In this market, consumers generally choose a long maturity, around 6 years. This choice has an unfavorable impact on the residual value of the property for resale.
In 2014, in the United States, financial captives represented about 28% of auto loan financing, they came in second after banks. On the American market, the leaders in auto credit are the banks. In the auto loan financing market through a financial subsidiary called captive, Toyota and Ford are among the world leaders.
At the end of 2015, the FED estimated at $ 1,060 billion outstanding auto loans in the United States. The FED being the central bank of the United States of America. However, there are concerns. Many of these loans have gone to precarious households, raising fears of another financial crisis. The rating agency FITCH estimates at $ 220 billion, the outstanding amount of these loans called "subprime auto loans". In United States, the Bank of United States estimates at 165.3 billion US dollars outstanding consumer loans as of December 31, 2015.
The use of car loans
In United States, the purchase of a vehicle is the main reason why households acquire consumer credit. Today, consumers who do not wish to purchase a vehicle for cash, for one reason or another, have several auto credit options. The solvent consumer will be able to determine the solution that best suits him according to his present and future personal situation, the price of the vehicle, his relationship with his banker… Then contact several financial organizations in order to find the option best suited to his situation.
At the end of 2012, according to the credit observatory, nearly 27% of French households had consumer credit. In United States, nearly 3 out of 4 new vehicles are acquired through a car loan. But, when it comes to used vehicle financing, only one in two used vehicles is purchased with a car loan. This is naturally explained by the fact that new vehicles are more expensive than used vehicles.
Very often the consumer subscribing to a car loan, finances only part of the price of his acquisition with the credit. Because, statistically, the amount of credit taken out for the purchase of a vehicle represents only 73% of the purchase price of the vehicle. But the older the consumer, the more the portion borrowed to finance the vehicle decreases. Thus, in general, the French have a contribution to finance their vehicles. The average duration of a car loan is four and a half years in United States.
To finance their used vehicles, the French prefer personal loans. With the advent of electric vehicles, new modes of financing are favored. Indeed, it is about financing based on rental financial formulas linked to the use of the battery.
Car loan subscription
In general, the consumer takes out his car loan at the place of purchase of his vehicle, so half of the car loans are taken out at the place of sale of the vehicle. The rest of the auto loans are taken out in banks or with credit organizations. Whatever the place of subscription of the car loan, the professionals of the car loan must respect the legislation in force on the consumer credits. Therefore, to protect consumers wishing to obtain consumer loans, the legislator has put in place a whole series of obligations for the lending institution.
First of all, it is up to the institution issuing the car loan to ensure the creditworthiness of the borrower. This involves in particular a check to be made in the file containing all the payment incidents. In United States, this file is called the FICP, the National Personal Credit Repayment Incidents File. It is administered by the Bank of United States. All individuals who have filed an over-indebtedness file, or who have defaults in the repayment of their loans, are registered there.
In order for the financial institution to insert a person's name in this file, the debtor must have been in default for at least 60 days. Where, he must have misused his authorized overdraft for more than 60 days for an amount greater than € 500. But the financial institution has the obligation to inform the debtor of its future entry in the file. When the debtor is informed of the institution's intentions, he has 30 days to regularize the due dates or the overdraft. At the end of these 30 days, without regularization of his situation, his registration with the FICP will be made.
Registration in the file lasts 5 years. After these 5 years, without any other payment incident, the name of the debtor will be automatically deleted. To be deleted from the file before this deadline, the borrower simply has to repay the sums that are the subject of the default. The various reforms put in place to improve the FICP have aimed to reduce the update time. Before 2009, the updating of the file was irregular, it could take place bimonthly. By reforming the administration of the file in 2011, the legislator wanted to achieve a daily update.
In addition to this verification, the lender is obliged to request certain supporting documents from the borrower in order to be able to grant him his auto loan. Indeed, for any loan of a value greater than 1000 €, the financial institution has the obligation to ask for these supporting documents. These documents include: proof of identity, address and income.
When the borrower has provided all the documents necessary to obtain his auto loan to the lending institution. The examination of the financing file can take place, the financial institution can then issue a preliminary offer grouping together all the mandatory information that will appear on the car loan agreement. When the auto credit offer is issued, the borrower has a maximum of 15 days to subscribe to the credit offer, at the end of this period, the credit organization may modify the credit offer. auto at will, by increasing the TEG for example.
But the issuance of this auto credit offer can in no case be invoiced. The credit professional has an obligation to inform the customer, he fulfills this obligation among other things, by informing the customer about the dangers of credit. Thus, on all advertisements promoting auto credit, or any other consumer credit, the following mandatory statement must appear: "A credit commits you and must be repaid." Check your abilities before committing ”.
The legislator has required the lender to provide the customer with certain information. First of all, the finance company must communicate its name and address to the subscriber of the car loan, so, in the event of withdrawal, the subscriber will know where to send said letter. The credit organization must specify to the borrower the type of auto loan he takes out, namely is it an affected loan, personal loan, revolving loan or a rental with option to purchase?
The consumer must also be clearly informed about the amount borrowed to finance his car loan. It must also have information on: the duration of the loan, the frequency of repayments, the payment schedule, the amount of the due dates, the total amount due. This amount comprising both the borrowed capital, the interest charged, any insurance, as well as the costs associated with setting up the car loan.
The TEG or APR, Global Effective Annual Rate must clearly appear on all auto loans with the exception of rental with option to purchase. The TEG is the interest rate applied to determine the amount of interest related to the auto loan. Since all financial institutions must communicate their TEGs, this rate is one of the tools that allows consumers to compare the car loan offers of different financial institutions. The lender must also specify the method of calculating the TEG.
The consumer must have information concerning the possible penalties which will be imposed on him for any late payment of his car loan. The consequences of late payments on his car loan must be communicated to him. Due to late payments, the lender is entitled to request the termination of said auto credit agreement, and consequently, the reimbursement of the outstanding capital and the payment of penalties.
By obtaining a car loan, the consumer will automatically benefit from a withdrawal period of 14 calendar days upon signing the contract, regardless of the type of car loan chosen. The purchase price of the vehicle cannot be different, whether the consumer pays for it in cash or using a car loan. After acceptance of the auto credit file by the financial institution, the release of funds can only take place at the expiration of the withdrawal period.
The lender also has, among other things, the annual obligation to inform the debtor of the outstanding amount.
Insurance and deposit
By subscribing to a car loan, the consumer has no insurance obligation. Indeed, insurance is not compulsory for consumer loans. Even if the credit institution offers him insurance, the consumer is free to choose another institution to provide him with the insurance benefits he has chosen for his car loan.
In the context of a car loan, the only compulsory insurance for the subscriber is civil liability insurance. Legally, the driver has the obligation to have insurance for his vehicle, at least, the vehicle to be insured under civil liability. With liability insurance, which is also called third-party insurance, the policyholder is insured against any damage that he may cause to a third party. Thus, if he is responsible for an accident, his passengers will be covered, as will the damage caused to the other vehicle. However, the driver and the person responsible for the accident will not be compensated. This is the reason why, very often, depending on the type of auto loan taken out, the creditor may require the borrower to be covered by other guarantees. This, in order to be compensated if the vehicle was involved in an accident, and then became unusable. In the event of an accident, the borrower must inform his insurance, as well as the organization that set up the car loan as soon as possible.
To obtain a car loan, the customer has the obligation to complete the medical questionnaire in good faith. If the borrower had difficulty obtaining insurance because of his current or past health problems, he could possibly benefit from the AERAS agreement. This agreement made it possible to improve the financial environment for sick people, by allowing them to access credit. This work began in 1991, initially, the convention only concerned HIV positive people, later, other groups of people were able to benefit from this convention. These are people suffering from chronic diseases, having been cured of cancer… Whereas before it was almost impossible for them to obtain a credit, because of the health questionnaire, today this is no longer the case. . A grid has been put in place so that consumers suffering from or having suffered from certain pathologies can benefit from insurance, almost at the same price as people in good health.
By providing the consumer with a car loan, the financial company is entitled to demand guarantees (real or personal security). The real security for an auto loan gives the credit company a right on the vehicle, which allows it to obtain payment of its debt, on the proceeds of the sale of the automobile, in the event of default of the debtor. Personal security allows the lender under certain conditions to request the repayment of the debt from someone other than the borrower.
Very often when it grants a car loan, the financial company establishes a real security clause, materialized by the pledge on the gray card which allows it to have a guarantee on the repayment of the car loan. With this pledge, the vehicle holder cannot sell the vehicle without the authorization of the financial institution as long as he has not repaid all the maturities of his car loan. Indeed, with the pledge on the gray card, without the lifting of the pledge, the owner of the vehicle will not be able to make any changes to the gray card. Thus, the transfer of ownership of the vehicle cannot be carried out.
Specifics of the rental with option to purchase
In the 1980s, some unscrupulous lenders used LOAs to allow non-creditworthy households to acquire a vehicle, failing to specify that they were only the renters of the vehicle. Consumers were unaware that in order to own the vehicle, they would have to pay a balance payment. As a result of the conflicts generated, the legislator has put in place various measures to remedy them. From now on, rentals with an option to purchase are subject to the regulations in force on consumer loans.
Today, rental with an option to purchase is the fastest growing auto loan. Consumers choosing LOA mostly do so to finance the purchase of a new vehicle. In June 2016, more than 80% of LOAs were used to finance the acquisition of a new vehicle. When the borrower chooses rental with an option to purchase, to finance his car loan, he is not the owner, but the tenant of the vehicle.
Leasing with an option to buy is an auto loan that is used to finance both new and used vehicles.
Among the financial institutions that can offer consumers a rental-type car loan with an option to purchase, there are of course banks, financial companies of car manufacturers (RCI Banque, Volkswagen Bank, Banque PSA Finance, etc.) and organizations. credit.
The institution that will set up the auto loan will buy the vehicle on behalf of the borrower. Then, she will rent it to the borrower. As part of the contract, the duration of the rental, as well as the level of rents will be entered in the rental agreement with option to purchase. Regardless of the financial institution that will finance this auto loan, it must specify in the financing offer the level of the security deposit. As with all other consumer loans, a consumer who obtains a lease with an option to buy will be given an amortization schedule. This amortization table will include the amount of rent, the security deposit, as well as the residual value of the property.
At the end of the auto loan agreement, when all the rents have been paid to the consumer, two options are possible. Either, buy the vehicle by paying the balance agreed upon when signing the car loan agreement, namely the residual value of the vehicle, or not buy the vehicle, and for example renew the rental.
By subscribing to the lease with option to purchase, the borrower can subscribe to certain services such as the maintenance of the financed vehicle. In practice, the company offering the credit with the option to buy often forces the consumer to acquire comprehensive insurance, although the law does not require it. Among the obligations of consumers when taking out a rental with an option to purchase, is the constraint to keep the vehicle in good working order. This clause takes on its full meaning when the borrower decides not to buy the vehicle. The lessee has the obligation to keep the vehicle in good working order.
Despite the fact that the consumer does not own the vehicle, with a rental option to purchase, the costs related to the issuance of the gray card are the responsibility of the subscriber of this car loan, as is maintenance. of the vehicle.
If the holder of a rental type car loan with an option to buy could no longer honor the rents, then; the company issuing the lease with option to purchase would be entitled to seize the vehicle.
When the buyer decides not to buy the vehicle, he can request a refund of his security deposit. The reimbursement of this deposit will only be made under certain conditions, in particular if the mileage of the vehicle does not exceed the limit provided for in the contract.
By choosing to lease with an option to buy, the consumer can have access to a high-end vehicle without having the necessary cash to purchase it in cash. The consumer with this auto loan also benefits from the manufacturer's guarantee for the duration of the loan or part of the duration of the credit. Depending on the formula chosen, the customer may be insured against the risk of breakdown, and benefit from free towing if the breakdown takes place in another country.
With leasing with option to buy, a consumer who is the subject of a seizure of his property, would not see his vehicle seized, because he is not the owner of the vehicle, he is only the renter.
Leasing with option to buy is ideal when the consumer wishes to use the vehicle temporarily. Especially if the consumer does not know if he will keep the vehicle for a long time. Renting with an option to buy gives the consumer the flexibility to decide on the length of the rental. At the end of his rental contract, he is free to extend the contract for the same vehicle, to terminate the contract in order to take out another concerning, for example, another vehicle, or to purchase the vehicle in question.
Leasing with an option to purchase allows you to obtain the financing of a customized car loan. With this option, consumers can choose the duration of the monthly payments, the amount of their monthly payments, obtain a declining monthly payment, guarantees, etc.
Companies choosing to finance the purchase of a vehicle by leasing with an option to purchase will not have to pay the tax on company vehicles. As the vehicle does not belong to them, they cannot be subject to this levy. In addition, they will not need to pay fixed assets, since the vehicle is financed by rents. As rents are operating expenses, rents will not be taxed.
One of the major drawbacks of auto credit by rental with option to buy is the complexity of the contract. Indeed, if the consumer chooses the rental with option to buy to finance his vehicle, he will have to examine many clauses, namely; the level of the security deposit, the duration of the rental, the amount of rent, the residual value of the vehicle, the insurance to be taken out, the mileage package, the maintenance clause, etc.
With this contract, the consumer is imposed a mileage package to be respected under penalty of penalties. In general, the mileage package is 20,000 km per year for a gasoline vehicle, and 30,000 km for a diesel automobile. Among the clauses of this auto loan is also the maintenance clause, this clause allows the financial institution to impose a maintenance schedule on its customer.
In the event of an irreparable disaster, or unpaid rents, the lender may request termination compensation. If the vehicle was stolen, or destroyed, with comprehensive insurance, the insurance would compensate the owner of the vehicle, namely the financial institution. However, that would not extinguish the debt. The amounts collected by the insurance would be taken into account in order to calculate what the consumer will have to pay. Indeed, the financial institution will deduct from the amount received from the insurance, the rents remaining due as well as the residual value of the vehicle. So, if the insurance compensation is lower, he will still have to continue paying for a car he no longer uses. However, the consumer can insure himself against the risk by taking out an additional guarantee. Even in the event of a breakdown, whatever the length of time the vehicle is immobilized, the amount of the rent would be unchanged, no modification of the deadline.
Unlike other consumer loans, with car loan by rental with option to buy, the overall effective rate is not specified. Because the cost of the rental depends on many criteria, namely, the security deposit, the duration of the rental appearing on the contract, the purchase price, the level of rents ... In the end, with financing of the car loan by LOA, the total cost is more difficult to obtain, and much higher than with an affected loan. Although the maturities are often lower due to the residual value that will have to be paid to obtain ownership of the vehicle.
As the interest rates for auto loans per rental with option to buy are not regulated, they can be close to the wear rate.
In principle, rentals with an option to purchase cannot be prepaid. In order for the consumer to be able to request an early repayment, the auto credit agreement must stipulate that at the end the vehicle will belong to the consumer. Thus, the consumer will buy back the vehicle according to a table of buyback values. Each month, the body financing the vehicle will provide the customer with the updated cash value table.
The revolving loan, auto loan
The revolving loan is a sum of money that the lender makes available to the borrower. Once the reserve has been made available, the consumer can choose whether or not to use this reserve of money. If he does not use anything, then he has no repayment to make, however, once he draws on this funding, he will have to pay installments in order to repay the borrowed capital. With the reserve, in the event of unforeseen expenditure, the consumer can dispose of the desired amount, having regard to the amount of the reserve within 48 hours, after expiry of the legal withdrawal periods.
The amount of the reserve is renewed as and when repayments are made by the debtor. With revolving credit, borrowers can make as many repayments as they want, prepaying, making additional payments. If the revolving loan was not used for two years, then it would be legally terminated as of right.
But the flexibility provided by the revolving loan is offset by high costs. Indeed, the borrower who chooses this mode of financing as auto loan would be imposed high interest rates. En fournissant un prêt renouvelable aux consommateurs, l'institution financière doit se soumettre à certaines obligations. Elle doit vérifier annuellement que l'emprunteur ne figure pas dans le fichier du FCIP. Tous les 3 ans, le prêteur doit apporter des vérifications concernant la solvabilité du consommateur, si la solvabilité de l'emprunteur s'était réduite, alors, le prêteur devra réduire le montant de la réserve de crédit.
Si le consommateur décidait de se servir d'un crédit renouvelable, pour financer l'acquisition de l'automobile. Alors, pour un crédit inférieur à 3 000€, la durée du prêt ne pourrait pas dépasser 3 années; alors que si le capital emprunté était supérieur à 3 000€, la durée du prêt ne pourrait pas dépasser 5 années. Si le crédit renouvelable était matérialisé par une carte de crédit d'une enseigne, l'enseigne a l'interdiction de lier la souscription d'un crédit à un quelconque avantage. Tous les paiements réalisés avec cette carte seront fait par défaut au comptant. Si le crédit demandé était supérieur à 1 000€, le consommateur aurait obligatoirement le choix entre un crédit renouvelable et un crédit amortissable.
Chaque mois, le prêteur doit fournir au client un relevé de situation. Dans ce relevé, le client doit pouvoir retrouver, la date d'arrêté du relevé, la date de paiement de la mensualité. La part de capital disponible doit aussi y figurer, le détail de la mensualité, à savoir, la part des intérêts, et celle du capital. Dans ce relevé, le client disposera aussi du taux appliqué sur la période, le montant déjà remboursé par le client, et le reste à payer.
Avantages du prêt renouvelable
L'un des avantages de ce mode de financement pour un crédit auto est la disponibilité des fonds. En plus de cela, l'emprunteur n'aura aucune explications concernant l'affectation des fonds à donner à la société de financement pour ce voir octroyer cet emprunt. Au fur et à mesure des remboursements, la réserve se renouvelle. L'emprunteur ne paie des intérêts que sur le montant ponctionné sur la réserve.
Les consommateurs disposant déjà d'un crédit renouvelable peuvent choisir de financer le crédit auto à l'aide de ce crédit renouvelable.
Pour le consommateur ayant déjà accès à un crédit renouvelable, le financement de son véhicule sera simplifié, puisque le crédit lui a déjà été accordé. En choisissant le crédit renouvelable, le consommateur choisit le niveau de ses mensualités, bien qu'un minimum lui soit imposé.
En finançant le crédit auto par un crédit renouvelable; le consommateur peut facilement faire un remboursement anticipé. En faisant un remboursement anticipé, le consommateur reconstitue son capital, qu'il sera libre d'utiliser ultérieurement pour financer un autre projet.
Inconvénients du prêt renouvelable
En plus des intérêts élevés, des frais liés à l'ouverture du crédit, le prêteur peut facturer des frais liés à la carte de crédit matérialisant ce prêt renouvelable, ou des frais liés au déblocage des fonds, quelque soit leurs formes (virement, chèque…). En finançant un véhicule avec un crédit renouvelable, l'emprunteur ne peut pas maîtriser le coût de son emprunt. Lorsque le consommateur finance l'achat d'un véhicule avec un prêt renouvelable, les taux d'intérêt évoluent au grès du marché. Puisqu'il s'agit souvent de taux variables. De ce fait, l'emprunteur ne pourra pas connaître précisément le coût réel du financement de son crédit auto. Avec le prêt renouvelable, la priorité de remboursement est donnée aux intérêts et à l'assurance, ainsi, le capital remboursé est assez faible, ce qui engendre un coût élevé du crédit auto financé par prêt renouvelable.
En fournissant un crédit renouvelable, les prêteurs ont tendance à privilégier les durées longues, ce qui augmente le coût total du crédit pour l'emprunteur.
En choisissant ce mode de financement, si pour une raison ou une autre, la livraison du véhicule n'avait pas lieu, contrairement au crédit affecté, l'emprunteur devrait tout de même payer ses mensualités.
Statistiquement, le crédit affecté est le crédit auto plébiscité par les consommateurs pour acquérir leurs véhicules. En choisissant le crédit affecté, le consommateur dispose d'un crédit uniquement affecté à l'achat du véhicule. Donc, avec un crédit auto de type prêt affecté, le consommateur passe deux contrats, un contrat avec le propriétaire du véhicule, et un autre contrat avec l'organisme de crédit. Ainsi, l'obtention du crédit est uniquement liée à l'achat du véhicule. Si pour une raison, ou une autre, le consommateur choisissait d'annuler son achat, alors, le prêt serait annulé. Ce crédit est certes contraignant, mais c'est le crédit auto le moins coûteux.
Avec le crédit auto de type crédit affecté, l'emprunteur ne commence à payer les mensualités qu'à la réception du véhicule. Bien souvent en choisissant cette option, le consommateur ne finance à crédit qu'une partie du coût du véhicule, cela passe par un apport personnel provenant du consommateur. Le financement est conditionné par l'achat du bien. Le consommateur a la possibilité de souscrire ce crédit auto directement auprès de sa banque. Il peut essayer d'entamer une négociation avec sa banque afin d'obtenir un meilleur financement. Pour se faire, il pourra éventuellement présenter les autres offres à son banquier en lui demandant de faire une meilleure offre, ou au moins de s'aligner. Mais la contre proposition est à la seule discrétion de la banque.
Lorsque le client dispose du droit au remboursement anticipé pour son crédit auto, l'organisme financier sera en droit d'imputer des pénalités. Si la durée restant de l'emprunt était supérieure à une année, alors, les pénalités ne devrait pas dépasser 1% du montant du crédit, 0.5% du montant du crédit si la durée restante était inférieure à 1 an. Mais quelque soit la durée restante, le montant de la pénalité ne peut excéder le montant des intérêts qui aurait été payé par l'emprunteur.
Avantage crédit affecté
Le crédit auto souscrit par un crédit affecté à l'achat d'une automobile est le financement le moins cher pour l'acquisition d'un véhicule. En effet, contrairement au LOA, le TEG est connu dès la signature.
En United States, généralement ces crédits sont financés avec des taux fixes. En plus, ils sont bien en dessous du taux d'usure. Le crédit affecté est le moins cher des crédits à la consommation. Les taux d'intérêt payés par le consommateur sont assez faibles, surtout lorsqu'il s'agit d'un crédit auto. Bien que le consommateur signe deux contrats, les clauses sont relativement simples.
En demandant un prêt affecté, l'emprunteur est propriétaire de son véhicule, à moins qu'il y ait des clauses de gage dans le contrat. En étant propriétaire du véhicule, pour tout incident donnant lieu à une indemnisation, c'est l'emprunteur qui toucherait la prime de l'assurance.
Inconvénient prêt affecté
Bien que le TEG soit le plus faible des crédits à la consommation, les mensualités sont souvent plus lourdes. Cela s'explique par le fait que le consommateur aura acquis le véhicule à l'issu de l'échéancier, sans avoir à payer de soulte à l'issu du contrat.
En souscrivant un prêt affecté , le consommateur lie le bien au financement, ainsi, si l'achat est annulé, le financement aussi.