For the purchase of a personal vehicle, households, for the most part, have little choice but to use the car loan. It is a project that has a more or less significant cost, depending on the type of vehicle targeted. Before committing, it is better to make a car loan simulation. It is indeed the best way to find the most advantageous financing offer. With us, nothing could be simpler and faster than estimating the amount of your future monthly car loan payments!
What is a car loan?
The car loan belongs to the category of consumer loans. It is subscribed with a credit institution or an approved financial organization. The lender provides the amount of money necessary to purchase a motor vehicle. It can be a car, a motorcycle, a quad or even a recreational vehicle such as a caravan, camper, etc. Auto credit differs from personal loan because it must be linked to the purchase of a motorized road vehicle and clearly identified. We are talking about allocated credit. The lender will then make available a sufficient amount of money for the acquisition of a new automobile.
Good to know: automatic cancellation of the car loan
An assigned credit, unlike a personal loan, is canceled automatically if the vehicle is not delivered or if, on receipt, it shows a non-conformity. The assurance of not having to repay a loan unnecessarily!
You should also know that the car loan can concern the purchase of a new vehicle as well as a used vehicle.
To make the right choice, you will have to start by defining the type of your new vehicle (city car, sedan, utility vehicle, etc.), and the choice of engine (petrol, diesel, hybrid or electric). If you choose to apply for a used car loan, you can get a good deal with a car in good condition but second-hand. Remember to consult the classified ads as well as go around the car dealers near you to find the gem.
Why do a car loan simulation?
A car loan simulation lets you first know if you can cope with new monthly payments. And so, make sure you can afford the coveted vehicle. By modulating the repayment period, you will also be able to adapt your future monthly payments to your financial situation.
But simulating a car loan has another major advantage: that of putting credit institutions in competition. It is indeed an unstoppable method to find the most advantageous loan offer, since you will be able to compare:
- The total cost of the loan, ideally over the same duration (obviously, the longer the duration of the loan, the greater its overall cost);
- The amount of monthly payments, always over a similar period ideally;
- Any costs in the event of early repayment;
- The APR (annual effective annual rate): this rate is a key indicator, because it includes all the costs linked to the loan (nominal interest rate, application fees, insurance costs …).
Simulate your car loan: how to apply for credit after simulation?
By making your request on the car credit simulator, an immediate answer in principle will be given to you from the car credit simulator. If your request is pre-accepted, you will only have to complete your file and send the supporting documents requested. What is more, you can then log in with your secure account on the website to monitor the processing of your request.
If you need to choose between several loan offers, you can read our guide on how to compare your auto credit. Remember to take the total cost of credit as a point of comparison, and compare offers by making identical requests. In addition, if you want to know the method of calculating a credit, do not hesitate to read our file on the calculation of a consumer credit.