Most domestic economies do not have that money to pay cash and, to be able to meet the payment, the best option is financing. This was the alternative chosen by 61% of buyers in 2019, according to the aforementioned study. Of this percentage, 32% formalized financing with the point of sale itself, followed by 17% who did so at a specialized financial institution, while 12% signed it with their usual bank. In this way, financing is the most chosen alternative to have a vehicle. To choose the loan method that best suits each driver, all you have to do is prepare the necessary documentation and take these nine keys into account. There are options for alternative car finance and you can make the full use of the same now.
Set a budget limit
As much as the car is going to be financed, each buyer must be aware of its indebtedness capacity so as not to enter an unpayable sum of money, even if financing is used. Being realistic ensures that the established installments can be paid since, otherwise, the financing contract is breached, something that can lead to interest for delay or late payment and even the termination of the loan and delivery of the car.
Pay the entrance
The more you can pay at the beginning, the better since the amount of money to be financed will be less and, therefore, less interest and less large installments. It is advisable to pay 20% of the car price as a ticket.
Know all the financing options
As with other loans, banks are the platforms that grant it. In the automobile sector, the dealers themselves have finance companies to carry out these procedures. The latter are usually more willing to negotiate because their objective is to sell.
Study interest rates
Once the entity with which the loan is to be formalized is decided, it is convenient to know the interest rates, since a new vehicle can be financed with a fixed interest rate (to always pay the same installment), variable (with reference) or flexible (with advantageous conditions during one season). There is also the so-called selective credit, only used by car manufacturers, in which a part of the total cost is financed in a short period and the rest is reserved for a last payment that the client can face or change cars. You can take the car loan and come up with the best deals there now.
Establish short deadlines
As in any financing, in the vehicle financing there are also interests. That is why, the shorter the loan has, the shorter these will be. So it is convenient to establish a financing that does not lengthen excessively in time.
Study the credit clauses
Attention must be paid to the conditions under which financing is formalized. These include the opening fee, the early repayment fee (in case part of the loan is suddenly advanced), the credit cancellation fee and the Nominal Interest Rate (the interest they charge to transfer the money).
Use a loan simulator
This is the most accurate way to guarantee what future monthly installments will be like. Many of these tools include an amortization table where the evolution of the loan over the years is indicated so that the debtor can observe which part corresponds to the amortization and which is destined to the payment of interest.