Category Archives: Car Loan

Tips on loans to buy a car

When deciding to change vehicles, it is very common to consider the need for a specific car loan. This loan is the help that allows us to buy the model that really interests us, without having to lower the benefits of the car to lower costs. In the motor sector it is more than usual to finance purchases , however, if you are thinking of changing your car keep reading to find out which loan is best for you Read for a critique


Car loan, the help you get to get what you want

Car loan, the help you get to get what you want

In general, it can be said that there are two types of loans that car buyers can go to in order to carry out this transaction in a comfortable and simple way:

  • Loans made by the dealer who sells the car.
  • Loans granted by a financial entity.

Whether one or the other type of financing is chosen, it must be taken into account that in both cases it is necessary to have initial savings, specifically an amount equal to 10% of the value of the vehicle to be purchased. The main characteristics of both types of loans are shown below to have all the necessary information when choosing the best way to pay for the purchase made.


Comparison of financing in a dealer or a financial

money loan

The main characteristics of the loan granted by the dealer who sells the car are:

  • It is usually one of the incentives to buy the car, since after all the dealer is interested in selling and thus facilitates the transaction.
  • They accept the used car regardless of the brand in exchange for a discount on the price of the new car. This is a way to make a profit on the old car without having to find a buyer, a quick and easy way to get an extra contribution for the purchase.

Regarding loans granted by financial institutions, the main characteristics are:

  • Unlike dealerships, they do not require you to take out life and unemployment insurance. In other words, in the loan granted by the dealer, the total cost of the insurance that must be contracted is added to the value of the car and the interest is applied to the total.
  • Financial institutions finance vehicles below 6,000 dollars, unlike dealers. That is, if the new car has a lower value or is second-hand, the financial institution will be of great help in obtaining financing, while the dealer is not the way to go.


Key aspects to choose the best loan

Key aspects to choose the best loan

There are a number of key factors that you should look at before making the decision about the financing to use, and these are:

  • You must know the amount that can be requested and the period in which that amount must be returned. It is recommended not to dedicate more than 35% of the income received monthly in a home for the repayment of this loan. In case you can not assume any fee, ask us about the option to refinance loans.
  • The total cost of credit, including interest, must be known so that the money to be returned is really known.

With these indications, you can have all the information to decide the best financing and purchase the vehicle you need.

Car credit: 420 cars are sold every hour thanks to a loan – Car Loans

The latest consumer credit indicators are rather positive. Despite a slight decline in growth, the level of activity remains high, according to the Across Lender in its latest analysis.

For its part, the Demo Lender Bank (DLB) takes stock of the financing of household projects. And with regard to loans dedicated to the purchase of a car, every hour the banking establishments finance the acquisition of 420 cars … or 10,000 in one day.

Credits to individuals: $ 1,128 billion in assets at the end of June

Credits to individuals: $ 1,128 billion in assets at the end of June

More than 1,000 billion USD in loans have been granted (including home loans) since 2014. To date, the total outstanding amounted to even 1,128 billion USD (at the end of June 2017), according to the last note of the Lite lender.

“Since the beginning of 2017, banks have granted nearly 35 billion USD in new loans each month,” said the DLB. Proof that household projects benefit from current financing conditions. The consumer credit activity also saw an annual growth rate of + 5.1% at the end of June. A significant decline compared to May (5.7%) but activity still strong.

Of the total outstanding, consumer loans represent 164 billion USD. An amount well below home loans, for the simple reason that the maximum amount of a consumer loan is 75,000 USD .

4.9 billion USD in consumer credit in June

4.9 billion USD in consumer credit in June

Consumer credit production amounted to 4.9 billion USD in June 2017 alone. An amount slightly lower than in May (5.1 billion USD). As for consumer loan rates (which also concern car loans), we observe a drop in the average rate from 4.11% in January to 3.83% in June.

Nevertheless, comparing auto loan rates is an essential step if you have this type of consumer project in mind. Indeed, the consumption rates vary according to the type of project and the amount to be financed. To find out everything about car credit, find our pages to find out the duration of a car loan or the amount of the car loan.

Online Car Loan Calculators

Using our online car loan calculators on our website, we can calculate the monthly repayment charges for a specified term, with just a few basic details.

For the most part, there is more than one car financing option to choose from, for example, our car loan calculators give you more options to compare forint or foreign currency based and ALLASCO and ALLASCO based designs.

When can I use the car loan calculator?

car loan calculator

Before buying a new or used car, we are thinking of either a loan or a leasing arrangement, when replacing a previous bad loan, and last but not least, if you want to get cash quickly for your own car. A common feature of all the types of loans listed here is that the car itself does not need to be covered by external collateral.

For the sake of simplicity, we often use the term car loan calculator, but of course each loan type has its own unique calculator.

What to take note of when having car leasing?

What to take note of when having car leasing?

If you are using a car leasing calculator, please note that the difference between leasing and credit is that in this case the car will remain the name of the bank/leasing company until the end of the term, and you as the lessee will be the keeper.

You pay the service fees, the obligatory and the required. ALLASCO insurance, the cost of the technical examination of the vehicle. At the end of the term the ownership of the car is transferred to you.

When calculating a car loan calculator, there are several factors that affect the taking of a car loan and / or car lease, such as the individual or legal entity. In the case of a legal entity (sole proprietorship or joint venture), only the leasing arrangement can be selected.

The required leverage (which is actually the first installment) is influenced by whether the loan is forint or foreign currency. The own funds can be chosen from 20% to 40%, while the maturity can be up to 7 years for individuals and up to 8 years for legal entities.