Bad credit auto loans -Bad credit? We offer instant auto loans bad credit
The car loan allows you to obtain directly from a bank or a financial institution, the money needed to finance the purchase of your vehicle. It is an installment loan, which can only be used to finance the purchase of a new or used four-wheeled motor vehicle. You repay each month a portion of the credit granted, plus the associated interest.
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The car loan can be used to purchase a professional vehicle, a first car, a used car, or a new car for your daily use. In general, there are several reasons why Belgian households take out auto loans:
- An old car that has become too expensive to maintain.
- A second or third vehicle to meet the needs of the family.
- The need to buy a 4×4 to be able to circulate in the snow.
- A desire to go to the cabriolet to enjoy the summer sun.
- A vehicle is seriously damaged and unrecoverable.
For all these reasons you can use a car loan to finance the purchase of your new vehicle, anywhere in Belgium.
What kind of vehicle can I finance with a car loan?
The car loan can be used to finance different types of vehicles. You can, for example, buy a car for your regular trips, an electric car, a mobile home, a caravan, a van, a truck, a van, etc. The financed vehicle can be new or used, city, family, utility, gasoline, diesel, hybrid, ecological, LPG …
The auto loan for new cars is generally cheaper than a used car loan. Not to mention that banks usually offer cheaper rates for new and electric vehicles. For a new car loan, the annual percentage rate of charge (APR) generally varies between 1% and 3 %. It can vary from 3% to 10% for a used car loan. At Crystal, for example, you can benefit from discounts if you have a deposit of 15% of the purchase price of your used vehicle.
As a general rule, lenders consider a car to be 0 to 2 years old as a new car. Thus, you will benefit from the same conditions of granting if you wish to buy a used car has already rolled on the public road, but being less than 2 years old.
How much and how long can you borrow?
The amount of the car loan
The amount of the auto loan varies from bank to bank. But in general, you can borrow between € 1,250 and € 150,000. A peculiarity of auto credit is that most credit organizations, like Crystal, allow you to borrow 110% or even 120% of the purchase price of the car. The additional funds can thus be used to pay associated fees such as the first insurance premium, the circulation tax, etc.
The duration of the car loan
The repayment term of the car credit depends on the price of the car purchased and also your ability to repay. It often varies between 1 year (12 months) and 10 years (120 months). Reduce the repayment term of your car loan as much as it will lower the interest rate and reduce the total cost of the credit to be repaid.
The rate varies according to the type of vehicle, but also according to the amount and duration of the car loan. For the same amount, do not hesitate to make a credit simulation with different repayment periods to see in which case the rate is more advantageous. You can use the Crystal auto credit simulator, it is easy to use and without commitment.
Can we use money from a car loan to finance something else?
Unlike a personal loan that you can use to finance what you want, the car loan is considered an assigned credit. This means that you can only use borrowed money to finance a new or used vehicle. Before obtaining the loan, the bank or credit agency will ask you to provide an invoice or purchase order as a voucher. Otherwise, the credit agency will not give you an auto loan affected. The granting of the car loan and the purchase of the vehicle are inseparable.
If the dealer or the individual from whom you purchased your car cancel the delivery of the vehicle or does not deliver it for any reason; the car loan agreement is canceled. Conversely, you can cancel (without charge) the sales contract if you can not find a lender. Thus, it is only from the reception of the vehicle that you must start to repay the bank.