How to calculate a car loan interest rate?
When looking for a vehicle, it may sometimes be necessary to obtain credit to buy a car, whether it is new or used. As we will see, there are several means of financing for the acquisition of a vehicle such as a car credit or long-term rental. There are also several places to take out the loan to buy a car.
When buying a new vehicle, very often the first idea is to take out a loan to buy a car in the same place where you buy the car. At first glance, this indeed seems simpler and it is possible to believe that the credit to buy a car could be all the more attractive because it is linked to the purchase of the vehicle.
Unfortunately, this is far from always the case, and it is, therefore, essential to compare the rate of credit offered in concession and the offers offered by banks and specialized credit organizations. Obtaining a car loan online or at a bank is no more complicated than at a concession and the supporting documents requested will be the same. In addition, the car loan can also be conditioned on the purchase of the vehicle.
Via a specialized organization
If the credit to buy a car is not made directly in a car dealership for the reasons mentioned above, we generally turn to his bank and/or a specialized credit organization.
The bank can indeed be a partner of choice for making a car loan because it is quite simply the establishment that knows the customer best. Still, the customer must be judged as a ” good customer ” by his bank so that the latter can offer him a competitive credit offer, which is far from being the majority of cases.
Another solution not to be overlooked is the offer that the insurer can make by coupling it with auto insurance. However, on the same principle as the purchase of the car and the credit, the trap to avoid is the loss of attractiveness on the price of car insurance.
Last but not least, it is to turn to a specialized credit organization where the competition is the toughest. In any case, it pays to compare offers of credit to buy a car.
Credit to buy a car, never without comparing
As we have seen, the supply of credit can vary depending on many factors. On the basis of this observation, Senior Credit takes daily the rates charged by the credit organizations and compares them on the basis of the APR rate. This is the benchmark rate for comparing consumer credit.
Before any choice, a comparison is indeed very necessary because there are large disparities in rates depending on the desired amount and duration.
For information, as of 11/29/2016, here is the ranking of the best car loan for the financing of a new vehicle of $ 10,000 over a reimbursement period of 60 months.