Auto credit is a popular financing solution for French people buying a new or used vehicle. Is it possible to subscribe this credit without contribution?
Would you like to take out a loan to finance the purchase of your new car? Is the personal contribution essential? Should we opt for a car loan without contribution or with contribution? All the answers.
It is quite possible to take out a car loan without any initial contribution. In this situation, the organization finances the entire amount of the vehicle. This solution is particularly suitable for low-income households with low savings who wish to maintain control of their budget over the medium term. To buy a car without a contribution amounts to increasing the total cost of credit. Indeed, if you do not have a contribution, the bank will offer a longer repayment period and a logically less interesting rate.
To get an auto loan without contributions, you must first determine your borrowing capacity, knowing that the debt ratio can not generally exceed 33% of your net income. If this criterion is not respected, it is likely that the bank refuses your credit application. To put the odds on his side, it is advisable to repay one of his debts or wait for the end of a credit in progress. If your professional situation does not allow you to get a car loan without contribution, do not hesitate to get closer to social organizations.
The personal contribution reassures the lender and allows to benefit from more favorable financing conditions. In fact, the larger the contribution, the lower the amount to be repaid and the total cost of credit. From hundreds to thousands of euros, it demonstrates the subscriber’s ability to save. This is why, the files with contribution are generally more accepted by the banks than those without contribution.
If you purchase a car loan with contribution, however, be sure to take stock of your overall expenses and the money you have left at the end of the month. This will allow you to properly assess the amount of contribution to be paid at the time of signing the loan agreement. It is important not to dip too much into your savings to be able to cope with any unforeseen expenses.
Auto credit offers are not lacking in the market. To sort, you can use an online comparator that will propose a list of contracts tailored to your needs. The annual percentage rate of charge (APR) is a criterion of comparison that must be taken into account. The lower it is, the lower the interest.
Before you decide, do not hesitate to make several requests for credit quote with and without contribution to identify the most advantageous offers. Playing the competition is the best way to save money!