You have to know who to contact to apply for a car loan, but above all make sure to receive a positive opinion at the best rate. Let’s start by detailing the good practices in a new car credit search. We can then look into the demand for used car credit, and in particular sales between individuals.
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The classic car loan in a brief
- Amount: $ 1,000 to $ 75,000
- Duration: 12 to 84 months
- Offered by credit agencies, banks/insurers, and dealers
- You must justify the purchase of the vehicle with an order form to obtain a car loan
- The rates are generally more attractive than those of credit without proof
The process is not quite the same between applying for a new car loan and a used car loan. The latter can actually take the form of credit without proof of use when the vehicle is sold by an individual. Let’s first detail the steps to follow to ensure you get the best new car loan. We will then see good practices in a search for a used car project loan.
A new car loan application in three steps
There are three simple steps to apply for a new car loan while ensuring you get the best rate. We will use our credit comparator for this. Connected to the best credit agencies, it allows you to obtain several answers immediately, avoiding wasting a lot of time.
- Use a new car credit comparator based on the APR rate
- Enter the amount of your project, the desired repayment period as well as your situation
- The best online auto loan specialists respond immediately
Getting a favorable opinion on a new car loan application online is a guarantee of quality. Specialists indeed offer very competitive solutions. Our studies have shown that applying for credit online is generally always more attractive than from a bank or a car dealer.
Car loan application and APR rate: why is it important?
The APR rate (overall effective annual rate) is an essential part of consumer credit. It allows transparent indication of the cost of interest, as well as additional costs. The APR makes it possible to honestly compare the different credit offers. Our comparator is only based on this indicator to determine its ranking of the best car loan.
Comparison of APR rates
We see daily how the APR rate can be different from one credit organization to another, for exactly the same request for car credit. The total cost of interest is affected, and sometimes the total cost is two to three times higher. Here is an example of the best rates for a request for a new car loan of 10,000 $ 48 months, and another 15,000 $ with a 60-month loan.
|For a car loan of 10,000 $ over 48 months||APR rate||Monthly fees||Total cost of credit|
|Best Organization||3.00%||176.93 $||492.64 $|
|The organization ranked third in the comparator||5.77%||186,50 $||952,00 $|
|For a car loan of $ 15,000 over 60 months|
|Best Organization||2.95%||331.42 $||908.16 $|
|The organization ranked third in the comparator||3.30%||333.68 $||1016.64 $|
We note that the total cost of our request for a car loan of 10,000 $ over 48 months is twice as high between the third organization and the best. They are, however, two of the greatest specialists in online lending, well known to the French. No need to go further to justify the usefulness of a comparator.
Used car loan application: several options
Our credit comparator simulates a request for second-hand car credit when the vehicle is more than two years old. However, you should know that a second-hand car loan is, as with new, conditioned by the delivery of an order form. Something rather complicated when the vehicle is sold by an individual, on a classified ads site or any other portal.
You must apply for a loan without proof of the use of money to buy a used vehicle from an individual. This type of personal loan can be used as travel credit as well as to finance a wedding. It is a consumer credit that could not be more conventional. The choices “loan for all projects”, “personal loan” and “need for money” on our comparator indicate the best APR rates for credit without proof.
Car loan application: with or without a bank?
Bankless credit from online credit organizations has several advantages:
- Speed: a request is made in a few minutes.
- The cost: credit organizations generally guarantee more attractive APR rates than those of banks.
- Accessibility: anyone can apply for a car loan online, while banks still require a lot to open an account before benefiting from it.
Car credit online is often much more attractive than that of a bank or an insurer. However, nothing prevents you from inquiring with your advisor about the rates applied and making a request.
What about a car loan from dealers?
Dealers have a major advantage: that of the showcase. It is much simpler to sell a means of financing to a seduced customer, behind the wheel of his future car. It is important to always keep in mind that conventional auto loan solutions from dealers are generally more expensive than those offered online. Brands have found the answer by offering different rental solutions with the option of purchasing, for a monthly rent calculated on the basis of a fixed price (number of kilometers/year, maintenance pack). Our opinion on the LOA warns about this rental formula. Not only does it not make the owner of the vehicle, but it turns out that it is above all always more expensive than a conventional car loan.
Applying for the best rate auto loan online gives you an idea of the rate you can get. The immediate response guaranteed by our comparator provides instant advice. A good way to guard against a possible much more expensive loan proposal. We always advise having a credit offer obtained simply online before going to the dealership.