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Car loan buyback: how to do?

Buying a car often requires the use of bank credit. But when too many credits are accumulated, the budget can quickly be smothered. To remedy this, two options are available to a borrower: integrate a previous credit car in a credit buyback operation or make a request for cash built into the purchase to finance the acquisition of a new car.

Define the redemption of credits

Define the redemption of credits

To regain better financial visibility when several credits are in progress, the redemption of credits is an optimal operation. This financial arrangement makes it possible to collect all the debts contracted by subscribing to a new loan. This new loan will include all other credits which will allow to negotiate a rate revised downward. The main objective being to reduce the budget of the home of the borrower, the monthly payments will be reduced *. This operation results in an extension of the repayment term. A restructuring that will allow the household to regain purchasing power because it will have more money for everyday life.

All individuals resident in France can make a request for redemption provided they are not registered with the Francia Bank. The grouping can concern both conventional consumer credit, credits allocated as a car loan or a work credit, a mortgage or even a bank overdraft. It is also possible to apply for cash to finance a new project, an amount to supplement the capital borrowed to buy back all outstanding credits. An ideal solution especially when considering becoming a new car owner. All different types of car loans can be included in a restructuring.

The different types of auto credit

The different types of auto credit

When we talk about car loans, it is really a classic consumer credit. It can take different forms, all of which are eligible for grouping. To acquire a new car, an individual can turn to:

  • a personal loan: this is a loan whose sum obtained is free of any use. The borrower must not provide any estimate to be granted the loan. He can thus buy the car of his choice without having to make a move before having obtained the said credit. It is possible to borrow up to 75,000 euros over a period of between 4 months minimum and 84 months maximum.
  • an appropriated credit: this financing is one of the most popular. This type of loan is said to be affected, ie the unlocked capital is dedicated solely to the purchase of the vehicle in question. The advantage is that it allows to have a guarantee at the time of delivery. Indeed, the refund will start only from the moment the car is delivered in good condition. In case of cancellation of the sale, the credit is also obsolete.
  • a LOA: the lease with option to buy is an increasingly popular solution. It makes it possible to pay a monthly installment during a determined period and to have the possibility at the end of this one to acquire the vehicle at its residual value.

All these credits belonging to the category of consumer credit are governed by the code of consumption. As such, borrowers have a 14-day cooling-off period after signing the contract.

Get a loan consolidation including a car loan

Get a loan consolidation including a car loan

When too much consumer credit is going on, it is possible that a household’s budget may be destabilized. To see things more clearly, especially when you have one or more car loans, a grouping operation is very effective. In order to obtain the integration of its car loan to the redemption, it is sufficient at the time of the request, to mention all the credits that one wishes to redeem. It is quite possible to group only certain credits by excluding for example its mortgage already negotiated at the best conditions.

This request can be made from his own bank. But this restructuring can also be an opportunity to compete by obtaining the best rate from other institutions. It is the new creditor who will take over the old credits from all the other institutions to reunite them in a new loan. The single monthly payment will be reduced * and the repayment period extended.

Consolidation of loans to buy a new vehicle

Consolidation of loans to buy a new vehicle

In addition to the possibility of including a car loan in a new loan, loan consolidation can also be a very effective lever for a new project such as the purchase of a vehicle. Indeed, if a borrower wishes through a redemption materialize a purchase he can make a request for additional cash. This must be done directly at the time of signing a contract. The repayment of the amount obtained will be smoothed throughout the repayment period of the new loan.

The amount obtained through this cash can be used freely or affected. This is a good alternative for financing an automobile without subscribing to an additional loan. On the other hand, through this cash, it is possible to realize significant savings compared to the costs associated with a conventional consumer credit. The maximum amount that can be obtained is capped at 15% of the total value of the loan pool.

The advantages of this assembly

The redemption of credits is an optimal solution to put order in its finances. It allows in particular:

  • lower monthly payments
  • the extension of the repayment period
  • the decrease in the debt ratio
  • the release of a cash
  • a downward negotiation of insurance contributions

Find the best offer for your budget

Find the best offer for your budget

Whether it ‘s buying a new car with debt restructuring and getting cash requirements, or just including a car loan in a consolidation transaction, it’s important to buy a new car. the offer that will best fit the household budget.

Whether on the Internet or on the windows of specialized institutions, offers are not lacking in the loan consolidation market. To find the one that best fits his project and his finances without destabilizing them, it may be interesting to contact a broker. This expert can accompany the borrower in all his research and provide all the details (rate, duration, cost) relative to the various offers. The broker presents itself as the ideal intermediary for the steps necessary to the success of a credit redemption: the constitution of the file, the negotiation of the rate, the calculation of the monthly payments or the expenses of files or of the advance repayment.

Alternatively, use an online comparator. All you have to do is enter all the data that are essential for estimating the cost of a repurchase transaction, such as income, the number of credits in progress, the amount of the monthly payments and the remaining repayment period. Thanks to this free simulation, it is possible to have a quick and precise overview of the cost of the monthly payments and the terms of the future consolidation operation. This is a free, no obligation quote. To concretize the approach, it is enough to make the request, and this in a few clicks.

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