Which forms of auto financing can I choose?
Do you want to take out car financing to be able to purchase a car? Then you can choose from different loan forms, but you can also decide to take out a loan with the bank or with a credit co.
Installment loan
If you choose an installment loan (LOA) you take out a credit that you will pay 100% off. It is not mandatory to pay an advance and you will pay monthly, quarterly, half-yearly or annually. Of course you pay a piece of capital to be paid, but also interest. These amounts together provide the monthly charge that you must take into account. You can usually choose the duration yourself, but this will depend on the amount borrowed.
Installment sales
Do you opt for installment sales? Then you generally pay an advance on the total amount of the loan. The interest rate is generally somewhat lower than with a regular installment loan, making this an attractive option. The amount to be borrowed will generally be between $ 2,500 and $ 50,000. You choose a period yourself, between 30 and 120 months. Make sure that the period does not exceed the lifetime of your car, to prevent you from paying costs for a car that you no longer drive.
Bank loan
Do you want to take out the loan? Then you can turn to the bank for this, among other things. Keep in mind that they will generally only offer the installment loan. If you prefer to opt for sale, you can turn to a dealer. In that respect, you can still choose from the different variants to get a car loan.
Credit company with car brand
You can also opt for a credit company that cooperates with one of the car brands. There you can choose an installment loan, an installment sale or a special variant that ensures a low installment amount and a high final sum. Please note that for installment sales, an advance payment of 15% will generally be required, so you should have that amount available.
The credit broker
Do you want to take out an installment loan? Then you can also turn to a credit broker, who will be able to make a competitive offer for car financing that you can compare with that of the bank.