Do you need to change your car but don’t have enough liquidity to buy a new and used car? Car loan can be the best solution for you! Find out how to choose the one that suits you best, including zero-interest loans and consumer credit.
A car loan allows the consumer to immediately obtain the amount necessary to purchase a vehicle, to be repaid in installments in the following period. Loans for car purchases can be used for other vehicles, such as motor vehicles, campers or, in some cases, boats. These loans are part of consumer credit, a category of loans for the purchase of consumer goods or services. Cars are one of the main objectives of consumer credit, as are other durable goods such as appliances.
Obviously, it is always possible to request a personal loan from a bank or other financial company
Without specifying that the money will be used to purchase a car. However, it is always a good idea to inform yourself carefully about financing offers addressed to motor vehicles, because these could have advantages. First of all, with the car loans it is possible to immediately receive the requested amount and buy the desired car. The duration of such a loan can be up to 10 years . Another peculiarity is the interest rate, which is normally fixed: this means that it will not change for the entire duration of the loan, guaranteeing the borrower certainty about the payment.
The conditions of the loan could change depending on the state of the vehicle you intend to buy: in particular, there could be distinctions between new and used cars . Loan offers can come from distribution companies (such as dealers) or car manufacturers. Usually, we rely on a partner bank that is responsible for providing the loan. The largest car manufacturers, on the other hand, often have their own financial arm, which deals directly with financing.
Coming back into the field of consumer credit
These loans are usually denied to VAT numbers, but recognized only to private citizens. These also have an additional advantage over other forms of financing: guarantees may not be required for car loans. In any case it is always good to be wary of “zero interest” offers and pay close attention to the conditions set by the contract.