Car loan offers are so numerous that it is essential to compare. To find the best car loan rate, our comparator lists the best offers from banks and financial organizations. We have also put together the best tips for negotiating your car loan rate.
Auto Credit Rates: Getting the Best
We will see, there are 2 essential steps. The first is to get the best auto credit rate deals. The second, not to be overlooked, is to get credit. Because keep in mind that on the lowest rates (including the auto credit rate 0%), the credit organizations will only take the best files to be sure not to have any arrears.
On the other hand, for your auto loan application, your project must be defined. You must first specify if you want to acquire a new car or if you need a used car loan . If you are taking a used car, select ” personal loan ” in our simulator. Indeed, auto credit rates are a little cheaper on new cars because in case of default, the credit organization will come and seize your car to resell it, a used vehicle having a random value for resale. But do not cheat because the credit organizations ask for supporting documents for the purchase of vehicles and can change the car loan rate if your supporting document is not that of a new car.
Last point, you need to define the amount and duration to get the auto credit rate. To define the amount, it’s quite simple, you know the price of the vehicle, the only thing that can vary it is the level of your contribution. It has no influence on the car loan rate, you can very well make a loan without contribution . As for the duration, do not take too short, even if it allows to have lower rates, you risk having too high a monthly payment and the credit organizations will refuse you. To multiply the chances of being accepted, submit several files, it is not engaging.
Thanks to our exclusive questionnaire, you will not only get the ranking of the best car loan rate. Thanks to our system, you will benefit from a non-binding evaluation of the cheapest organization, which allows you to know whether to question the other cheapest organizations. It’s simple, it’s done with one click and you increase the chances of actually getting the best rate.
NB: To properly define the amount you need, it may be dependent on the resale of the vehicle you currently own. In order not to be mistaken about this value, we advise you on the one hand to use the argus but also to look at the sale prices offered by individuals on a site like www.leboncoin.fr. Indeed, it is necessary to determine the fair market price.
Negotiate your car loan rate
Too many people go into negotiations without having the means to influence their interlocutors.
The first step is to go around the market. Tedious? Good thing we have visited the new and used auto loan organizations best known for you. At the end of entering our questionnaire, you will get the ranking of the three best auto credit rates offered at the time of your request, for any type of amount and duration.
Thanks to this ranking you will know what to expect … well not quite. Step 1a is to find out if the credit agencies are ready to follow you and get a concrete proposal. For this, you will automatically benefit from the non-binding assessment of the organization offering the best car loan rate. Then, you just have to ask that we question for you the organizations that offered the cheapest auto loan rates ranked 2nd and 3rd with one click. It is not engaging and it allows you to fulfill two essential objectives: to know if an organization is ready to finance your project AND to obtain a formal proposal to be the strongest to negotiate the car loan rate.
The second step is to go to the dealership with at least one car loan offer as we have just seen it before. The seller will be forced to make you a cheaper car loan rate offer if he wants to prevail. If it cannot line up, it is because you already have the best car loan rate in your hands.
For used vehicles, the question is less of an issue because dealership credit offers are almost always more expensive than the best auto loan rate that can be found with the largest organizations on the web. Not that big brands of car credit like Diac (Renault) are not interested but as we explained this type of credit is more risky for them.
These are the secrets of a good negotiation of the best car credit rate, do not leave without a counter-proposal otherwise the seller will be in a strong position and you will pay your car credit too expensive!
Avoid the highest car loan rates and save thousands of USD
To prove to you that it is in your best interest to be wary of auto credit rates, even from the biggest names in credit, here is a comparison that should definitely convince you.
Amount of vehicle to finance: 20,000 USD
Credit term: 60 months
Least expensive car loan: Fixed APR rate: 4.50% fixed monthly payment 372.04 USD total interest cost: 2322.40 USD.
Most expensive car loan: Fixed APR rate: 9.77% fixed monthly payment $ 418.65 total interest cost: $ 5,119.00.
Or a difference of around 2800 USD for the same credit for exactly the same credit 20 000 USD! And don’t think that we went to look for a small, well-hidden organization for the most expensive car loan rate… You see it very regularly on television through its advertisements!
Car loan rate: the APR reference
The APR is the overall effective annual rate. It is a rate defined as a reference by legislation in terms of consumer credit. This rate includes all credit costs. For example, a car loan rate in APR * will integrate both the car loan interest rate and the administration fees if there are any.
On the other hand, this car loan rate must be communicated on advertisements if the credit organization wishes to put forward a rate.
Conversely, with regard to rental, whether it is Rental with Purchase Option (LOA) or Long-Term Rental (LLD), the law does not currently oblige anything in terms of communication on the rate, and for good reason! The manufacturers are having a great time. But we will see in the next paragraph, just remember that you will not see auto credit rates on advertisements for LOA or LLD.
Another point to watch out for is the cost of insurance. There was supposed to be an auto loan rate that included the cost of insurance. TAEA, the overall annual effective insurance rate. It does exist, but only in very small amounts for a given amount, which makes it impossible for us to communicate objectively on the subject and offer you a comparison of objective and easily usable auto credit rate. The other point that made it difficult to communicate an objective comparison is that it is not always the same guarantees that auto credit insurance covers. Keep in mind, however, that the cost of insurance can sometimes be very expensive, almost equivalent to the cost of credit. Far from being useless, anyway, look at the real guarantees that there are in insurance because the latter practically doubles the car loan rate.
Car loan or rental LOA or LLD
We have dedicated a complete and exclusive article to make an original comparison between the car loan, the LOA and the LLD: comparative LOA, LLD and car credit. Indeed, the law has provided for an obligation in terms of communication on the car loan rate, but this is not the case for long-term rental and rental with option to buy. So much so that the dealers’ credit agencies are having a great time modulating the financing formulas and thus making you believe that you can buy cars for 100 USD per month!
The truth is that with the LOA or LLD, they can inflate the first rent which is perceived as a deposit (which you will never see again since the goal is not that you buy the car in the end!). In the case of LOA, they can also increase the trade-in value, which in the end means that during the rental period you have the impression that you are not paying much but in the end if you had to recalculate in auto credit rate what that you actually pay, you would be a little scared…
The LOA and the LLD can be useful but for the LLD it is rather a formula for the professionals who can be tax exempt on the rent and the LOA is rather reserved for those who can afford the luxury of not managing the resale of their car.