To get to work, to move around, to transport the children, the car is indispensable. In fact, more than 8 out of 10 French households drive a car. But differences in income can make it difficult to buy a new car. Fortunately, there are solutions, in particular the car loan. You don't know which car loan to choose? We tell you everything in this comparative guide.
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Our selection
"Cetelem, the consumer credit specialist, offers a very attractive car loan. For 4,000 to 75,000 euros repayable over 12 to 120 months, you can buy…"
"With a fixed APR, it is easy to evaluate the car loan offered by Younited. It ranges from 0.10 to 21.14% depending on the amount…"
"The Société Générale subsidiary offers a car loan for new or used vehicles. Accessible entirely online, it entitles you to an amount of between 1,600…"
"The car loan for used vehicles over 2 years old is very interesting at La Banque Postale. In addition, this offer does not necessarily require…"
Cetelem, the consumer credit specialist, offers a very attractive car loan. For 4,000 to 75,000 euros repayable over 12 to 120 months, you can buy a new or used car or a two-wheeler.
See the priceCetelem does not necessarily require a personal contribution for this type of loan. But it finances 100% of the car purchase. However, the addition of your savings will not be refused, since it reduces the total amount to be borrowed, in other words the amount to be repaid. Under this special offer, you can apply for a loan of 4,000 to 20,000 euros to buy a car, repayable between 12 and 12 months.
Note that the APR for the Cetelem Crédit Véhicules/2 roues loan is fixed and ranges from 1 to 10.52%. The interest rate applied can go up or down, but the monthly payments of the signed contract do not change. In addition, there are no unpleasant surprises on the fees and the release of funds is fast. Just apply online and you'll get an answer in principle, with reduced monthly payments for the first 6 months.
With a fixed APR, it is easy to evaluate the car loan offered by Younited. It ranges from 0.10 to 21.14% depending on the amount borrowed. As for the proposed repayment period, it ranges from 6 to 84 months for the vehicle loan.
See the offerAvailable online, the Younited car loan can be definitively validated in just 24 hours. And it's not just a tentative answer. You can even sign the contract online with an electronic signature. This offer is intended for individuals and allows you to borrow an amount of less than 3,000 euros, to be repaid over 3 years. However, the minimum loan accepted is 1,000 euros and the maximum is 50,000 euros for a period of 6 to 84 months.
As mentioned above, the loan application can be made online. You don't have to go anywhere to fill in the form and get some offers that match your profile. Some documents are even verifiable in the digital process to speed up the application such as the bank statement.
The Société Générale subsidiary offers a car loan for new or used vehicles. Accessible entirely online, it entitles you to an amount of between 1,600 and 75,000 euros, repayable in 12 to 72 months.
See the offerIn addition to new car loans, Franfinance has special terms for vehicles less than 2 years old. For used vehicles over 2 years old, the maximum repayment term is 60 months instead of 72 months. Also, the minimum loan amount is 1,500 Euros versus 1,600 Euros for other options. The APR offered by Franfinance ranges from 0.90 to 4.90%.
The biggest advantage of this consumer credit organization is the promotions. They compensate for the somewhat high rates. Regardless of the contract you sign, you will have 14 days to retract. When the monthly payments start, the borrower has the choice between the 10th, 20th and 30th to start the debit. This way, the repayment process is better adapted to the borrower's situation.
The car loan for used vehicles over 2 years old is very interesting at La Banque Postale. In addition, this offer does not necessarily require a loan insurance or a personal contribution.
See the offerWith the La Banque Postale Personal Car Loan, you can borrow up to 35,000 euros to buy a used car. The repayment period is from 12 to 72 months. The amount/duration ratio offered by La Banque Postale is very competitive if only compared to its other credit offers.
It is possible to take out a loan with this organization by telephone or via an online form. For more flexibility, the borrower will have the choice of the date of payment of the monthly installments. In addition, the borrower can suspend the monthly payments if necessary, under certain conditions.
Any specific needs?
The best car loan to finance a used car purchase
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Cetelem Vehicle/2 Wheel Credit
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Younited Auto Credit
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Franfinance Auto Loan
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La Banque Postale Personal Car Loan
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Cetelem, the consumer credit specialist, offers a very attractive car loan. For 4,000 to 75,000 euros repayable over 12 to 120 months, you can buy a new or used car or a two-wheeler.
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With a fixed APR, it is easy to evaluate the car loan offered by Younited. It ranges from 0.10 to 21.14% depending on the amount borrowed. As for the proposed repayment period, it ranges from 6 to 84 months for the vehicle loan.
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The Société Générale subsidiary offers a car loan for new or used vehicles. Accessible entirely online, it entitles you to an amount of between 1,600 and 75,000 euros, repayable in 12 to 72 months.
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The car loan for used vehicles over 2 years old is very interesting at La Banque Postale. In addition, this offer does not necessarily require a loan insurance or a personal contribution.
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Optional personal contribution
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100% digital procedure
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Ability to split application between two borrowers
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Credit without contribution
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Flexible repayment terms and duration
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Online application
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Choice of monthly payment withdrawal date
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Monthly payment deferral possible
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Fund available after 8 days
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Electronic signature
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Excellent customer service
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Subscription by phone
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The annual percentage rate represents the total cost of borrowing. Displayed as a percentage of the amount requested, it allows you to see if you are able to repay or not. Several factors are included in this element for a complete analysis, including the application and credit fees, the cost of insurance, the nominal rate, guarantees and commissions. To see a reduction in APR, consider negotiating with the lender. This element is clearly presented with each offer available on the internet. Focus on a lower APR to enjoy a controlled cost.
The monthly payment is determined by several factors. Your professional situation is one of them. The amount to be paid monthly depends on the salary, in other words the budget of the borrower. In case you have several outstanding credits, the total debt ratio must not exceed 33%. A fixed rate car loan does not have the same monthly payments as a variable rate car loan. With the first type of credit, the interest rate applied does not change throughout the duration of the loan. Thus, the amount of the monthly payments is determined in advance. In this case, the car loan is more secure. With a variable rate, the monthly payments can increase or decrease during the contract.
The credit organizations do not ask for the same conditions. In particular, the borrower's insurance can be a mandatory criterion or not. In the case where it would be an unavoidable criterion, inquire about the insurance offer of lender. It can be interesting or not depending on your situation. That is, you are entitled to purchase insurance from another institution. Some car loan providers charge prepayment penalties. This should be made clear at the outset of the loan. The corresponding fees can quickly rise to 1% of the amount borrowed. This is not insignificant. It is therefore best to work with organizations that do not require this amount of money if you think you will be able to pay off your debts sooner than expected. Then, compare the rate of indebtedness accepted by the banks and organizations that interest you. But generally, they accept a maximum rate of 33%, evaluated in relation to your main and regular income.
Take advantage of the diversity of offers on the market. Not all financial institutions have the same prices and conditions. So it's not a good idea to jump on the first offer that comes along. Take the time to compare several offers before taking out your car loan.
The
annual effective insurance rate is the equivalent of the total cost of the borrower's insurance. It's to be considered when you take the insurance offer proposed by the car loan provider. Financial institutions and banks have hit hard on these fees before. But the delegation of insurance allows you today to have more flexibility with regard to the choice of the borrower's insurance.
The duration has an influence on the amount of the monthly payments and on the total cost of the loan. Certainly, the amount to be repaid monthly is less expensive because it is spread over several months, but the total expenses increase with the various fees. In any case, the duration should be determined according to your ability to repay. The duration proposed by the organizations is the same for a new car and a used car. The average chosen by borrowers is 5 years.
The car loan is made up of your own contribution and the contributions of the lending institution. The personal contribution is subtracted from the total loan to reduce the total cost of the loan. The amounts to be repaid include
If all these costs are not displayed by the lender, the main comparison criterion is the nominal rate. It is up to you to include other expenses after asking the lender for information. Although the elements to consider are the same for all organizations, the details change everything. The total cost depends not only on the amount of the loan, but also on the lender's pricing policy.
As well as the extent of the guarantees provided by your insurer, your profile counts. The lender has to reduce the risk of non-repayment.
The car loan itself is not the only alternative to buy a nice car, new or used. The following other types of credit are also advantageous. Choose according to your case.
No. The assigned car loan can only be used for the purchase of a vehicle. Moreover, when the loan is granted, it goes directly into the dealer's account. The money does not go through the borrower. With an assigned car loan, the monthly payments start when the car is at your disposal.
The advantage of this type of loan is that the loan is automatically cancelled when the sale is not concluded. This is valid whether with banks or institutions collaborating with the dealer.
As a
non-restricted credit, the personal loan allows you to finance the purchase of a car, as it does not require a justification of use. The release of funds is faster with this option. Nevertheless, lenders are somewhat demanding with regard to your ability to repay.
The conditions are almost the same as with the car loan. However, the interest rate is always higher. This credit is suitable for the purchase of a used car, especially if repairs are planned. Since you don't have to justify the reasons for your loan, you won't have any difficulty ensuring any maintenance when you receive the car.
A
balloon loan involves using a vehicle by paying monthly payments at the same
time.
In other words, you lease it with the possibility of buying it. The purchase price is announced before the car is made available. If you don't buy the car, the lease fee is paid monthly, as if you were paying off a loan.
The monthly payments are less important in this case. The downside is that the vehicle is not yours, even after paying these amounts, unless you are happy with the selling price offered at the beginning of the contract. In this case, you can always pay cash.
You can't borrow more than 75,000 euros, regardless of the institution or bank.
The subscription to a car loan is accompanied by a proof of purchase from the dealer or the seller in the case of a used vehicle. Thus, the credit application is not necessary if the sale is not made. This will limit your debts.
If you don't want to go into debt, leasing with an option to buy is an option. It is available from banks and financial institutions. This offer is related to the balloon loan. Thus, three possibilities are available to you. The first is to return the car after the duration of the lease.
You can also renew the contract if you still need the vehicle. The last option is to buy it at the end of the lease. This type of offer is called leasing for professionals. The principle is the same as with the rental with purchase option.
Leasing with an option to buy is interesting if you don't have a deposit to include in the loan. It is a perfect offer for those with limited budgets. However, you must still take into account the additional costs to be paid when the purchase option is exercised.
If the car is returned without a purchase, you will lose out somewhat, as you will have paid a certain amount of money even though the vehicle is not yours in the end. A car loan is still the safest solution and can be very advantageous if you find the right offer.
Take out loan insurance
Loan insurance is not always mandatory. However, even if the lender does not require it, it is recommended that you take out insurance. It protects you from a possible inability to repay in case of illness or risk of death.
Beware of the pitfalls that come with promotions
Many
organizations offer promotions to alleviate the costs borne by borrowers. Note, for example, that 0% interest car loans must be repaid within a very short time.
Gather useful documents beforehand
The
documents requested are more or less the same: photocopy of the identity document, proof of income, a tax notice, proof of residence, a bank identity statement and bank statements. Group them together beforehand to speed up the release of funds.
Avoid adjustable rate credit
Adjustable rate credit may seem like a good idea at first glance, but it represents a very high risk. In this setting, the lender gives you a cash reserve to pay for your car. The kicker is that interest rates climb very quickly with this choice.
Check all fees before signing
It's
best to rely on the APR, because it shows all the fees you have to pay. So there's no risk of a nasty surprise in the bill.
The best car loan depends on your needs and your budget. Read our buying guide to find out which products are best for you.
The car loan is intended to finance the purchase of a vehicle: car, motorcycle, trailer, camper and many others. In addition, there are other costs associated with the acquisition, including the purchase of essential accessories, maintenance and repair, but also the preparation of official documents.
Dealers also offer car loans. The procedures here are streamlined, as it is up to the dealer to negotiate with their financial partner and work out the paperwork issues. The problem is that the rates are quite often more expensive. Especially since borrowers have no basis for comparison in this case.
There is no right or wrong choice. It all depends on how attractive the offers are. Always take the time to compare them.
The amount borrowed, the duration of the contract, the APR, the amount of borrower's insurance, the periodic rate are involved in the calculation of the car loan. The periodic rate is calculated by dividing the annual rate by the number of annual installments. Then the formula used to calculate the monthly payment is : (Capital*Periodic rate)/1 - (1+Periodic rate)*number of payments
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