Solutions to finance the purchase of a vehicle are numerous. Finding a cheap car loan requires taking the time to compare different offers to find the one that best suits your needs.
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 various auto credit proposals so that you can compare and find the most advantageous. This will increase your chances of finding a cheap car loan.
Compare cheap car credit
- Compare cheap car credit
- What is an auto credit comparator?
- On which elements are the auto credit comparators based?
- Take your online steps for a cheap car loan
On which elements are the auto credit comparators based?
The comparison method used by auto credit comparators is based on APR which is the annual percentage rate of charge. The APR is made up of the interest rate of a loan but it also includes the various costs (fees), commissions or possible remunerations. It is a tool to get the real cost of a credit. Thus, this represents the best technique to compare the different offers of auto loans that are on the market. The consumer can then have a global view of the proposals on the market in order to have the opportunity to find the cheapest loan.
The APR can be influenced by the age of the vehicle that the consumer wants to buy (whether new or used) but also by the borrower’s situation and the length of time he chooses for his credit. Therefore, the annual percentage rate that can be seen on the various offers presented by the comparators is only indicative and can still vary according to certain criteria that will be defined later. However, this remains a very good indicator of the cost of a credit since the difference will not necessarily be very noticeable.
By using an auto credit comparator
you will often have the opportunity to see the monthly payments that 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 sum borrowed to which will be added the annual percentage rate of charge.
Take your online steps for a cheap car loan
Some credit comparison companies allow not only to compare the different offers of the market but also to make a thorough study of the file of the future borrower and send it to one or more financial organizations of his choice. This represents a considerable time saving because it then only needs to select the agencies offering offers that best meet his expectations as well as his situation.
First, it is a question of performing a loan simulation by entering certain information necessary for the study of the credit application file. The borrower must specify if he wants to buy 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 may choose a shorter term for his credit which will reduce the APR and thus the total cost of the loan.
Then, the borrower will have to communicate some information about himself (family situation, professional, banking …) so that the loan organizations can study at best his request. It should be noted that if it is registered with the FCIP (Personal Credit Reimbursement Incident File), it will have great difficulty in finding an organization that is willing to give it credit. It is the same if its debt ratio exceeds 33%.
How auto credit comparator works?
Once all the necessary information has been entered, the auto credit comparator will present the various offers that may correspond to the situation as well as to the expectations of the consumer who will then only have to choose the ones he finds most advantageous. His file will then be sent to the organizations in question, which will often allow him to obtain an immediate answer in principle.
Following this, a credit agreement will be sent to him and he will have to sign it then send it back to the agency by enclosing the required supporting documents (it is also possible that he receives several proposals of contract in which case he will have to choose the one that suits him best). A definitive answer will be communicated to him following a thorough study of his file then the funds will either be released on his bank account, or directly to the salesman from whom he makes his purchase of a vehicle.