Focus on the regulation of a car loan
In order to protect borrowers from possible risks associated with a loan intended for the acquisition of a car, there are regulations to govern the auto loan, as is the case with any type of consumer credit. One can, among other things, mention the Scrivener law which introduced new measures, particularly in terms of modalities. It concerns in particular the loans whose amount oscillates between 200 and 75? 000 $. Its minimum repayment period is 3 months. Any lending institution must mention its identity and the details of the loan in the contract. We can also talk about the Neiertz law which essentially regulates the problems relating to household over-indebtedness. It is based, for example, on the revision of the duration of the loan and the consolidation of credit. As is the case for a consumer loan, a car loan borrower has a withdrawal period of 14 days from the date of signing the contract.
- What is auto credit?
- The process of subscribing to a car loan
- Choose the best credit offer
What is auto credit?
In general, to ever hope to buy the car you've always dreamed of, you need to save money for months. Whether you want to buy a new or used car, a vehicle still costs a small fortune. However, it is possible to opt for a car loan to acquire it. It is a financing solution allowing you to borrow a defined sum of money in order to buy a new or used car. With car credit, it is no longer essential to save years or touch what you have set aside to acquire a motor vehicle.
The process of subscribing to a car loan
If you want to take out an auto loan, you must start by looking for financial organizations, credit institutions or even car dealerships that offer it. You can do it online, quietly, via a comparator. For the security and guarantee of transactions, you must fill out forms and submit a request, always online. It's faster.
You will then present a purchase order or invoice to certify that you will actually use the money for the purchase of a vehicle. Then you will be sent a credit agreement. This is called the credit allocated to the purchase of the automobile.
In addition, you can opt for the personal loan to be able to use the borrowed amount according to your needs. This second type of credit mainly concerns the purchase of a used car. In this case, here's a tip in passing: You should still take a good look at the condition of the vehicle before purchasing it. It is even recommended to call in an expert to carry out the checks. This will allow you to avoid hidden flaws and malfunctions that may increase the amount of money you need when lending.
Choose the best credit offer
The consumer code says that the maximum loan granted for the purchase of a car is $ 75,000 which can be repaid for 7 years. But if you plan to resell the vehicle, this period can be reduced to 5 years. Do not forget especially the simulation before fixing your choice. Thus, you will have an idea of the offers and services offered by the different credit institutions. In general, the use of the simulator is free, and the results you will obtain will help you know the amount you want to borrow, the repayment period, the monthly payments to be paid, the Annual Global Effective Rate or APR, ancillary costs as well. that various data which will help you to carry out your calculations and to choose the ideal offer.
Most often in consumer credit, we talk about affected credit and credit without proof, that is to say that you must justify or not the destination of the sums that will be loaned to you, and this, from the introduction of your request.