How to negotiate your car loan?

To minimize the cost of buying your car, you can negotiate your car loan. Follow our leads to benefit from a cheap car loan.

Auto credit: The most commited to consumer credits

Auto credit: The most commited to consumer credits

The car loan is a credit allocated to the purchase of a car. It can finance the total amount of the vehicle, with a ceiling of € 75,000 and a repayment period of up to 84 months. As an assigned credit, the car loan has some peculiarities: the reimbursement only starts with the delivery of the car. If the vehicle is not delivered, the car credit can be canceled without charge. The average amount of a car loan is around 13 000 €. The auto credit represents half of the credits conso contracted in France. Dealers regularly offer financing solutions to buyers, but an individual is quite entitled to choose a car loan from the agency of their choice, and can even freely use the loan between individuals.

Negotiating a car credit: a competitive market

Negotiating a car credit: Falling with banks

The car loan generally offers the lowest interest rate among the various consumer loans and for good reason: it is highly competitive. The borrower is therefore in a strong position to negotiate car loans if he relies on this competitive market. Dealer, banks, lenders, collaborative online credit platforms: perform simulations and quote requests, and share them with the various players involved in order to obtain the most competitive car loan possible.

Negotiating a car credit: Building on your assets

Negotiating a car credit: Building on your assets

A negotiation is a face-to-face exchange between a buyer and a seller. The buyer – or rather the borrower – may require his interlocutor to provide him with his most interesting offer, with the agreement of his hierarchy. For that – and while putting the forms, it can be based on:

his loyalty, if he has already subscribed credits in the past;

  • good account management, relying on the elements provided with a loan application (bank statements);
  • its solvency and low debt ratio, on the basis of its supporting documents for a loan application (pay slips).
  • A good client and a low-risk client encourage lending institutions to offer attractive conditions to attract them.

Negotiating a car credit: The benefits of the personal contribution

Negotiating a car credit: The benefits of the personal contribution

The lower the amount to borrow, the cheaper the car loan! A good way to reduce the amount to borrow is to have a personal contribution. Ideally, it should represent 10% to 20% of the price of the car. This personal contribution has a double effect:

  • it reduces the amount to borrow;
  • It reassures the lending institution on the good management of the borrower, demonstrating its ability to save. This promotes better loan conditions.

Negotiating a car credit:  Reducing reimbursement time

Negotiating a car credit:  Reducing reimbursement time

The interest rate goes up with the repayment term of the car loan. The shorter the repayment period, the lower the rate! To reduce the repayment period, it is therefore necessary to increase the amount of the monthly payments as much as possible, within the limit of the debt ratio accepted by the lending institution (generally one third of the income).

Negotiating a car credit: From the vehicle selling price

Negotiating a car credit: From the vehicle selling price

The selling price of the car largely determines the amount to be borrowed for a car loan. And it is precisely he who certainly has the greatest leeway in terms of negotiation! Whether it’s buying a new or used car, it’s still possible to get a discount. It is also necessary to run the competition (especially for the new) and rely on the defects of the vehicle (for the occasion), possibly negotiate the price of registration. It is even more possible to negotiate the price of a new car when it comes to vehicle with options and maintenance package.

Negotiating a car credit: Falling with banks

Negotiating a car credit: Falling with banks

To benefit from an attractive interest rate and reduced costs for your car loan, you need to focus on personal loans or collaborative loans. Credit between individuals is a loan concluded outside the framework of conventional organizations, without intermediary between the borrower and the lender. Collaborative credit is halfway between these models. An online platform, such as Creditstair, uses investor savings to respond to individual loan applications via a selective procedure that meets the same solvency requirements as any other lending institution approved by the prudential supervisory authority. and resolution of the Francia Bank. Creditstair’s business model, with margins significantly lower than banks and other lending institutions, makes it possible to offer attractive auto loans.

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