Car loan Where to start?

finance a car

Private vehicles have ceased to be luxury items to become essential products if you want to expand your job opportunities and increase your quality of life . However, acquiring it is not always a profitable option for our finances. That is why in this article we will tell you step by step everything you need to know about a car loan.

Today, there are many facilities and financing methods that can help you buy a car without losing your savings. However, not all of them work the same, so you should carefully analyze the conditions of each financing modality to see if it adapts to your current needs . This time we will tell you everything you need to know about a car loan.

The best loans to buy a car

Last update: 6 November 2020
Ranking created based on the most frequently granted loans
1 - 48 months
term
$ 50 - $ 7,500
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
6 - 84 months
term
$ 1,000 - $ 50,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
6 - 60 months
term
$ 500 - $ 10,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
1 - 60 months
? Even from 7 days
term
$ 50 - $ 9,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
2 - 36 months
term
$ 100 - $ 5,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
6 - 96 months
term
$ 1,000 - $ 50,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
1 - 48 months
term
$ 50 - $ 5,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
18 months
term
$ 100 - $ 1,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
3 - 24 months
term
$ 1,000 - $ 5,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
16 years
term
$ 500 - $ 50,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
1 - 36 months
? Term from 1 day for microcredits
term
$ 100 - $ 15,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
17 years
term
$ 8,000 - $ 500,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "

How to finance a car?

If you plan to buy a new or used car, you should know that there are several options to finance it.

  • Through a Dealer : If you go to a dealer, it is very likely that they will offer you a financing option that includes interest and commission for the sale.
  • Applying for a Bank Loan: if you have been with the same bank for many years and have a good credit history, you can request a bank loan to purchase your car. However, the requirements may be higher or require a certain length of service.
  • Applying for a Personal Loan: if you want to take advantage of dealer offers by paying cash for a new or used car, you can arrange a loan at lenders. Normally, in this type of financing they do not demand many requirements and you can do the paperwork online, saving time and money.

What should I take into account in a new or used car loan?

Before applying for a car loan, it is important that you evaluate each financing offer and take into account aspects such as:

  • Interest mode : if you take out a loan with fixed interest, this means that you will pay the same installment every month. However, if the loan carries variable interest, you may pay more or less money for a few months, which will depend on the fluctuation of the market.
  • Opening commission: some banks may charge you an extra amount for opening your file and formalizing the contract.
  • Amortization commission: if you get money through other means and you want to pay part or all of your loan before the end of the term, you should know that some companies charge a commission for amortization .
  • Repayment period: normally, to pay a car loan, they usually establish terms of four to eight years. Select the offer with the most convenient term according to your needs. However, most companies that offer installment loans online allow extensions.

Requirements to request a car loan

car loans with asnef

If you are going to buy a new or used car, banks or lending companies will request information such as:

  • Identity documents such as valid NIE or DNI .
  • Some banks require documents of your address such as a receipt for rent or service that is in your name.
  • Information about the purchase: it is normal for financial institutions to request documents that support the use that you will give the money requested. For example, a budget or proforma invoice if it is a new vehicle or a vehicle purchase contract, if it is a used one.
  • Proof of income that can be a payroll, pension, benefit, scholarship , etc. In this regard, banks are usually more demanding and request only a proof of work.
  • Bank information of your last movements or a document that confirms that you are the owner of the account. In the case of online lenders, you will not have to worry about collecting this information, since through a couple of clicks you can access a secure site where the web directly verifies your banking information.

Finance car with Credit Checker

If you have recently tried to apply for a loan at a bank, you will know that appearing in a delinquent file can make you less eligible to receive any financing. However, there are lending companies that do not take this file into account and offer loans with Credit Checker . In this way, regardless of whether your credit history is not the best, you can access a car loan.

How to request a Car Loan?

One of the easiest ways to request a car loan is to request it through one of the options that we present, since they are procedures that you can do completely online. In addition, you will receive a response in record time so that you can plan your purchase in the best way. These are the steps you must follow:

  1. Select any of the companies that we present to you and click on "Apply".
  2. Once on the company's website, select the amount you need and the return period that suits you best.
  3. Fill out a form with your data to create your financial profile.
  4. Submit the request.
  5. You will receive a response in 15 minutes and if your request was approved they will send you a digital contract with all the conditions.
  6. Once the digital contract is signed, you will have the money in your account instantly. However, this will depend on your bank and the day you make the request.
  7. Now it only remains to pay the agreed fee each month.

How is the financing to buy a car calculated?

It is very common that, when requesting credit to finance a car, you are given the option of paying a down payment or down payment that will reduce your remaining debt . It is advisable to make this payment to reduce the amount of the monthly fee and the return period. There is a rule to calculate how much money to pay up front and thus determine the financing that will affect your finances as little as possible and will allow you to carry this economic responsibility without problems.

This rule is based on 4/20/10 which implies paying an entry of 20% of the value of the vehicle , with a return period of 4 years or 48 months and monthly installments that do not exceed 10% of your salary.

Tips to finance a car
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