Are you planning to buy a car soon? Know that you can use a personal car loan to finance your project. It is a credit formula like any other except that it has its specificities. Details on this subject.
What is e personal car loan is a credit granted to finance the purchase of a vehicle. You can use it to buy a new or used car, a motorcycle, a scooter and even a boat. In other words, it is an assigned credit and its scope of use is not limited to the purchase of a car. However, the credit institution always asks for proof of purchase. The amount granted as part of a personal loan can be up to €75,000 and the repayment period is between 12 and 84 months, depending on the amount requested.
What are the specificities of the personal car loan?
The personal car loan, as an assigned credit, is only used to finance the purchase of a vehicle. For the bank and the seller, it is a guarantee of security because the credit you apply for cannot be used for other purposes. The bank is thus more motivated to grant the financing because the risks involved are lower. Furthermore, if the sale of the vehicle is cancelled, the credit is also cancelled and you will not have to make a repayment. On the other hand, if your application for a personal loan is rejected or the vehicle has not been delivered, the sale is not completed. You don’t start paying off your credit until the vehicle has been delivered to you. With a personal car loan you take the minimum risk and the same is true for the bank. What’s more, the credit rate is lower compared to a personal loan.
What are the conditions for obtaining a personal car loan?
When you apply for a personal loan, you don’t have to present your personal contribution to obtain financing. However, the banks particularly appreciate customers with a high personal contribution. They do not hesitate to grant them an interesting rate because the amount of their loan is not too high. However, you do not have to put all your savings into buying a car to avoid being in a critical situation later on. In addition, insurance is not mandatory for a personal car loan. On the other hand, you will benefit from taking out insurance if the amount of your loan is high. You will then be covered in the event of difficulty in repaying the loan. As for the repayment period, you can ask for a reduction in order to pay off your debt more quickly. The bank is the sole decision-maker if the period is reasonable or if it is risky for the bank.