The time has come: you want to buy a new car. However, the investment you must make for this purchase should not be underestimated. Fortunately, there are many ways to finance it. The loan is part of it.
In order to buy your new car, you need a certain amount. You can choose to borrow this amount from a bank in the form of a car loan. The bank then lends you the full amount you need. Immediately thereafter, you will have to pay a certain amount each month, until your car loan is finally repaid. All this is discussed in advance with the bank. Online there are also many tools available to simulate the cost of your car loan in advance.
The low price is advantageous for a car loan. You pay a lower interest rate on a car loan than if you made a personal loan. Why that ? The bank lends you money for your car and also makes a guarantee. When you can not reimburse your car for any reason, your car becomes the property of the bank. This offers bank certainty on the recovery of the amount borrowed and therefore you pay a lower interest rate.
Car rental for individuals
Car leasing for individuals is interesting for people who do not have the capital to invest in a car and for those who do not wish to borrow. How does it work? You enter into a lease for a certain period of time, usually four years, with a car supplier. During this period, you rent the car from this company. You pay a fixed contribution per month. This contribution includes monthly rental fees, your insurance, traffic tax and maintenance. At the end of the lease, you have the option to buy the car at the current value. The price you pay for the car will be reduced by the number of months or years you have paid for the rental.
A car purchase via a loan is perfectly possible. The figures of the Professional Credit Association show that more and more car loans are contracted in Belgium each year. For example, one in three people would buy their car on credit, thanks to the low interest rate.