Financing Solutions for a New Car.

Buying a new vehicle is a pleasure that comes at a cost, and it necessarily involves a financing solution. Financing a new car can take many forms, depending on whether you want to become the owner or simply a tenant of the vehicle.

 

Cash payment of a new car

Cash payment of a new car

 

Some households have the means to finance themselves their new vehicle thanks to their savings. If their bank accounts are sufficiently provisioned, they can if they wish to proceed with the cash payment of the car.

This involves immediately unblocking the entire amount of money claimed by the seller in return for the sale of the vehicle. This solution saves borrowing interest.

 

Auto credit

Auto credit

 

For those who can not afford to pay for their new car, there is a simple and effective solution: auto credit . This financing solution for a new or used car is part of the assigned loans category. This means that it is a loan granted by a bank or credit institution for the acquisition of an automobile.

This loan can not be used for anything other than the financing of the vehicle for which it was granted, with quote and invoice. One of the advantages of the new car credit is that it protects its owner against the vagaries of the sale since its refund starts only from the moment the vehicle is received and provided that it operates normally.

 

The personal loan

The personal loan

 

Like new car credit, personal loan is a means of financing easy to access and effective. But unlike the previous financing method, the personal loan is not an assigned credit, which means that the borrower does not have to provide proof to use the unblocked funds.

This allows the buyer of a vehicle to borrow more money than the purchase price of the vehicle, to finance other projects than the purchase of the vehicle in question. It therefore offers some flexibility. However, the protection of the borrower is less than with a car loan since it must begin repayment immediately, regardless of the state of operation of the vehicle.

 

The new car loan

The new car loan

 

Those who do not wish to become owners of their vehicle will be able to opt for new car loan solutions such as lease with option to purchase or long-term lease. In the first case, the lease allows you to drive in a new vehicle for less cost than the purchase, with the possibility, at the end of the rental period, to buy the vehicle.

In the second case, the contract provides for the rental of a new car for a definite period, with no possibility of purchase at the end of the rental period. Here as in the previous case, the advantage lies in the savings in terms of rent and vehicle maintenance costs.

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