How do you know who is able to offer real cheap car credit? Difficult to navigate between credit organizations, banks, manufacturers or certain insurers. We will see that the cheapest car loan can in most cases be easily obtained online. Comparison of the best car loan rates and advice to obtain a positive opinion in the best conditions.
Cheap car credit: where to look, how to get it?
Several questions must be asked in order to facilitate the search for a cheap car loan:
- Is it a new or used car loan?
- What is the price of the car or my maximum budget?
- What is my monthly repayment capacity?
Clearly identifying the necessary budget and its repayment capacity allows you to apply for an adapted car loan. This is the first step in the quest for cheap car credit.
The car loan can be more or less interesting depending on whether it is a new or used car loan. The conditions of obtaining also differ, since it is always necessary to provide a proof of purchase or purchase order in the case of a new car loan. We will see how to find the best cheap car credit for new, before looking at used car credit.
Cheap new auto credit: who offers the best rate?
There are several ways to get the best car credit:
- Online, thanks to credit organizations (Bankil, Bankate, Yoabank auto credit, etc.).
- Directly from a conventional bank or online.
- At an insurer (auto loan ).
- Directly in concession, at the point of sale.
The best way to get cheap car credit for new is to use an online credit comparison tool. Our car loan rate barometer (APR) indicates that the best solution is generally found with specialized credit organizations. All offer the new auto loan project, at more or less advantageous rates. We regularly observe during our comparisons of car loan rates that dealers (Audi, Fiat credit, etc.) are generally not able to offer better classic car loan solutions than those of online credit organizations.
The APR rate, the basis for comparing cheap car loans
The APR rate (annual effective annual rate) is the benchmark indicator for finding a cheap car loan. It represents, as a percentage, the total and actual cost of any consumer credit. The APR rate therefore includes the cost of the credit depending on the repayment duration, but also all possible additional costs (administrative or management fees).
Advantages of online car credit
The online car loan is above all an easily comparable loan. Our credit comparator allows for example to obtain in principle a response in principle at the best rate. Comparison of APR rates is however impossible when you go directly to the dealership. Requesting an appointment with your bank without having the slightest idea of the rates charged by the best organizations does not represent a step towards obtaining a cheap car loan. It is possible to identify but above all to obtain a cheap car loan proposal online. In this case, you must indicate the project “new car loan or -2 years” on our comparator, as shown in the example below.
Comparing offers online is only of interest if the best organizations provide an immediate answer in principle. This is why our comparator is able to say whether a request will be accepted or not at the best car loan rate (see result of the simulation below). The conditions for accepting a loan do vary depending on the organization. It would be a shame to stop at a refused request during a Bankate car credit simulation if a competitor is able to accept the request in better conditions.
For this cheap car loan simulation of $ 10,000 over 48 months, the organization offering the best APR rate needs to study the request. The next two, on the other hand, accepted the conditions without hesitation. They will formulate a final proposal by email within 24 hours.
Cheap car credit: how to negotiate well?
Here is the best way to ensure that you have the best new car credit:
- Obtain a favorable and non-binding opinion on your online credit application.
- Bring the credit contract obtained by email to compare the rates offered in the garage.
- Reproduce the process with your bank advisor. Is he able to offer a better offer?
Our experience as a credit comparator shows that the best cheap car credit is often that offered by specialists. Certain promotional offers of conventional amortizable loans from dealers can sometimes compete. As for auto credit from banks or insurers, it is very rarely advantageous. Only privileged customers of a bank will see on the table a proposal for cheap car credit.
Is LOA a cheap car loan?
No, LOA (rental with option to buy) is no more attractive than a classic new car loan. This formula is attractive commercially, but often proves to be much more attractive for the brand than for the customer. This involves renting a vehicle for the duration of a 2 to 5 year contract, with monthly payments determined in advance according to several criteria (number of kilometers, chosen maintenance contract, etc.).
LOA formulas are almost always more expensive than a conventional car loan. The APR rate is never communicated, and scholarly calculations must be carried out to calculate the real cost over the entire duration of the contract. It is the only car loan whose cost is impossible to determine.
Used car credit: where to look?
You do not need to provide proof of purchase for a used car loan. This condition in less facilitates access to a used car found on the internet, whether sold by an individual or a professional. The APR rates for used car loans are slightly higher than for a new car loan.
The best cheap car loan deals for the occasion are often personal loans. This is the classic credit of organizations, without proof of use of money. You must indicate “used car loan or + 2 years” on our form to get a proposal for cheap car credit at the best rate.
Car or car loan: watch out for overly commercial offers
It is not uncommon to see an advertisement or advertisement promising car loans at very low APR rates, sometimes even less than 1%. It is actually very often a commercial trick to attract the consumer. These offers correspond most of the time to credits to be reimbursed for short periods.
However, few individuals are able to amortize a car loan over 12 or even 24 months. When the reseller finds that the profile does not match the offer, he will be free to suggest more expensive credit, or an LOA or LLD formula. It is important to clearly differentiate the commercial offer, target rate and final proposal. The best way to get a real quick proposal without commitment is to use a comparator.