Finance your car with an auto loan or a personal loan?

Posted on June 20, 2020
auto credit or personal loan

Your car has just broken down and you are looking for financing so you can replace it? Don't have a car and need a vehicle to get to job interviews? Have you fallen in love with the latest model from Audi? Unfortunately you don't have enough money in your account to be able to pay it in cash? So know that there are several types of financing to be able to pay you your next car whether new or used, find out right away which car loan or personal loan is the best device to be able to finance your 4 wheels at a lower price. .

Characteristics of a car loan and a personal loan

Personal credit is financing that will allow the borrower to borrow from 1000 to 75 000 us dollars without having to provide proof of purchase to his banker. This could be to buy furniture, pay health expenses, household appliances, go on vacation, buy a car, etc ... Please note, however, without proof does not mean that you will have to present any proof of identity, domicile or income to your bank, this only concerns invoices at the time of purchase.

Personal credit has the advantage of allowing the borrower to benefit from easy-to-use financing, which leaves him some freedom in his purchases. However, it should be understood with this type of credit that the rate will be more important than other consumer credits such as the affected loan in particular.

Auto credit it is a financing which falls under the category of credits known as "allocated", one will also find between the credit works which falls within this same category. These consumer loans are financing that will be dedicated to a specific project. If you want to buy a car and you want to go through a car loan then you will have to provide proof such as a quote for example to your banker so that he accepts to provide you with the funds. You will be less free than a personal credit when using the funds, however you will be able to save on the rate which will be more interesting and the more advantageous conditions, in particular in the event of cancellation of the sale, your credit will be simply canceled unlike to a personal credit.

Use a simulator to make the best choice

To make the best choice of credit, you just have to go to the site of a bank and use their simulator. So you can try with several types of credit to see which one is the most interesting, you can also play with the amounts, the repayment period, the monthly payments, you will see the rate increase or decrease depending on the conditions you have chosen. This simple exercise will help you in minutes to optimize your application to find out exactly what type of credit to choose, how much and what repayment period, you will only have to go through the stage of comparison of bodies credit to earn some extra points on your consumer credit.