Cheap auto loan: best APR rates and tips to take advantage of them – Car Loans

Finding a cheap auto loan can turn into the Cross without having the slightest idea of how this market. We will release the true from the false by comparing the APR rate new car loan or used. Finally, we talk about the rent with option to purchase (LOA): can we say that this is a car loan cheap?

How to recognize a cheap car loan?

How to recognize a cheap car loan?

The car loan is a consumer loan, just like a personal loan or any other financing solution (work loan, revolving credit, etc.). This appropriation is, like its cousins, always associated with a rate APR (annual percentage rate). This is the only indicator on which to base yourself when looking for cheap credit. The APR makes it possible to calculate the real cost of the credit, by integrating both interest and any fees. Once the players capable of offering a cheap car loan have been identified, we will therefore put their new or used car loan offers on the APR balance of rates.

Auto Credit Reminder

The new car or used credit is a loan with proof (order). This feature allows lenders to offer a real cheap car loan, since the need for financing is fully justified and identified. When it is impossible to obtain a valid proof, as in the case of a purchase from an individual, it is better to turn to a personal loan without proof.

Where to look for a cheap car loan?

Where to look for a cheap car loan?

Several players are able to offer a cheap car loan:

  • Online credit organizations
  • A traditional or online bank
  • Dealers directly in the garage
  • Several specialist insurers 
  • Certain specialized sites

Our experience as a credit comparator allows us to assume that the cheapest car credit is almost always that of credit organizations (Viloan, Bankrate, Astro Finance, Zaloan car credit, etc.). However, this is not an absolute truth. Above all, it has no value without an associated comparison.

New car loan comparison: the moment of truth

New car loan comparison: the moment of truth

Compare the different APR rates offered by all car loan professionals, focusing on the new car loan. Note that the classic new car credit rates are usually slightly more interesting than those of used car loans. However, there is always some consistency: an actor whose new car loan is expensive will not offer a cheap car loan on occasion.

We simulated a new auto loan in the amount of 15,000 $ over 60 months, without input. Our credit comparison tool allows us to classify cheap car loan offers from large organizations, on the sole basis of the APR rate. We compared the offer of specialist credit with that of Renault (DIAC), Aramisauto credit, a Caisse d’Épargne vehicle loan, and finally Maïf car credit.

The cheap car loan is not surprisingly that of credit agencies. He leads widely all other market participants, including dealers Renault (in this case). This is a constant during our various searches for the best car credit.

Banks are late

Most of the time, you have to be a customer of a bank to hope to get a car loan. Banks mainly lend only to their most financially stable customers. No need to consider a change of bank in the sole hope of obtaining a cheap car loan, unless you join it with a lot of savings or significant financial guarantees.

How to get a cheap auto loan agreement?

How to get a cheap auto loan agreement?

Our credit comparator allows you to request a new car loan (- 2 years) but also a cheap second-hand car loan (+ 2 years), while ensuring an immediate response in principle. Here is the procedure to follow to give a little more life to your project:

  1. Fill in “new auto credit” or “used auto credit” on our form.
  2. Complete the classic steps (identity, situation, etc.) in four to five minutes.
  3. Our comparator immediately interrogates the best bodies, and displays the ranking of the best APR rate.
  4. Organization N ° 1 is immediately questioned and provides an immediate response in principle. When the acceptability rate is more than 50% (see example below), then the cheap car loan has no reason to be refused. It is also possible to request a return of the second and third specialist to maximize its chances of receiving a contract.
  5. The specialists provide confirmation of the request by email within 24 hours.

Is LOA a cheap car loan?

Is LOA a cheap car loan?

The LOA (hire-purchase) occupies an important place in the world auto loan. It is indeed a consumer credit in the eyes of the law. Our opinion on the LOA, however, highlights some troublesome points, namely:

  • Lack of APR rate on LOA offers
  • Sometimes unclear circumstances (package cost maintenance / repair, recovery requirements, etc.)

Above all, one does not become the owner of the vehicle during the term of the contract. This implies that any damage not covered by the contract may be subject to a deduction – sometimes significant – in the case of a return of the car. We always advise rather a classic car loan not expensive to hire-purchase solution. It should not be forgotten that it is quite possible to resell your car before the end of the classic car loan, to settle it in advance and to consider changing vehicles. Our survey “LOA, car credit, LLD: which is the cheapest” leaves no doubt as to the costly nature of LOA. It is always interesting to think “long term” before committing to a solution of LOA.

Cheap car loan: our advice to take advantage of it

Cheap car loan: our advice to take advantage of it

Here are the main tips we can provide when looking for a cheap car loan:

  • Estimate your need for financing and your monthly repayment capacity.
  • Compare auto loan offers on the sole basis of the APR rate.
  • Always be wary of the cost of an LOA formula offered in dealerships. A car loan is generally cheaper in the long run.
  • Think of specialists’ online credit (Viloan, Bankate, etc.), which is generally always cheaper than that of banks, insurers and even the manufacturers themselves.
  • Do not hesitate to negotiate on the price of the car in concession, and in particular the costs of commissioning.
  • In the event of a change of mind, there is a legal right of withdrawal of 14 days (see law). It must in that case usually print a schedule associated with the contract and ensure the return within the time limit.
  • Check that the professional order form includes the mention “purchase conditioned by obtaining a credit”. This indication will cancel the sale if the cheap car loan is ultimately not validated.