It is tempting to buy a new car but the budget for this purchase is not always enough. The buyer can therefore direct his choice to a used car that will be less greedy in terms. If he opts for a loan, it remains to know what is the most interesting formula between new car credit and used car credit.
Type of new car credit and used car
A new car is usually financed by a car loan , which is an assigned credit. Most car dealerships offer this type of loan to their customers. The latter often have the choice between a car loan offered by the manufacturer’s subsidiary and a car loan provided by a specialized organization.
When buying used car loans are only consumer loans or personal loans . The rate is not necessarily competitive except during promotional offers at certain times of the year.
The vehicle, whether new or used, can, however, be realized by the customer with a bank or a financial organization of his choice.
In this case, the person concerned can choose between two formulas: an assigned credit or a personal loan. Interest rates vary from one institution to another.
New car credit or used car credit: what is the most advantageous?
New car credit
In this case, it is possible to obtain a new car credit through his bank or to appeal to a credit agency.
For this type of auto loan, it is recommended to choose an assigned credit rather than a personal loan whose cost is much higher and the duration shorter.
Used car credit
It is always a personal loan. The customer has no choice. This type of credit is intended for Dorian Grayr any project without proof of purchase contrary to the credit allocated.
The personal loan for the purchase of a used car is rarely offered by banks.
Indeed, in case of a payment incident, they will not be able to recover the full refund due by the customer, because the vehicle has suffered a sharp discount. Also, the second-hand vehicle is mainly granted by a credit agency which, for its part, applies a much higher rate than for a new car credit. It evaluates the age of the vehicle and defines the TEG according to the amount and duration of the loan.
The cost of a used car credit of fewer than 2 years is however more advantageous than that of buying an older vehicle.
To better assess ability, it is strongly recommended that you use an online simulator that compares the cost of a new car credit to that of used car credit. Finally, it should be known that the TEG is likely to vary depending on the capital borrowed. For example, a car loan of € 4,000 has a higher interest rate than a car loan of € 10,000, for an equal duration.