Car loan comparison: find the best rate

To establish an objective car loan comparison, there are a number of criteria to take into account when choosing the right car loan:

  • Distinguish between car credit and used car credit. They do not offer the same rates and do not ask for the same supporting documents.
  • Establish a car loan comparison based on the APR rate (legal rate) to obtain a classification of car loan rates as objective as possible.
  • Be wary of call rates and be vigilant in dealerships.

A real car credit comparison

A real car credit comparison

To obtain an objective auto credit comparison, this comparison must be based on the taeg rate . Indeed, the overall effective annual rate is the legal rate on which credit organizations and banks are obliged to communicate by the Consumer Credit Law. It includes all costs, including administration fees if there are any. When consulting a credit comparator who does not mention this rate, one should be very vigilant.

But getting a ranking of the best taeg rates is not enough. Indeed, some banks and certain organizations offer low rates to be displayed in the top positions of car credit comparisons and give the impression of offering the cheapest car credit. The problem is that they will refuse the vast majority of loan applications. However, a car loan comparison that would not really get the best possible rate , would not help that much that its customers.

To answer this double problem, the auto credit comparison that we have developed allows:

  • obtain a non-binding assessment from the organization offering the best rate . This system allows you to know if everyone can really get the best rate on the market or if you have to fall back on the second best offer and so on. This system also makes it possible to avoid organizations which have very low call rates but which only accept the best files.
  • get a recommendation from the organization that has the best chance of accepting everyone’s file to have the best chance of concrete agreement for its credit.

To access the auto credit comparison and obtain a simulation without obligation, simply test our exclusive questionnaire:

Car loan comparison: new and used

Car loan comparison: new and used

The majority of automobile purchases are made on credit. This is the area that generates the most credit requests, whether for a new or used vehicle. However, the procedures and the rate are not the same for a loan for a new or used car.

Indeed, if we make a comparison of new and used car credit, we will quickly realize that the rates for buying a new car are cheaper than for the occasion . The reason is quite simple: in the event of non-payment, the credit organizations will be able to seize a car which will have more value on average for the purchase of a new vehicle. Their risk history must also have shown that there were more repayment problems for used car credit.

Comparative example of new and used car loan through a 10,000 USD loan over 60 months:

  • Fixed taeg rate for new car loan (from): 4.50% cost of credit: 1,399.76 USD
  • Fixed taeg rate used car loan (from): 5.10% cost of credit: 1589.12 USD

Or about 200 USD more plus the used car loan. And to make this car loan comparison in full transparency, we took these 2 offers at the same time from Cetelem.

Comparison used car credit

Let us now see what a comparative car loan gives between the cheapest and the most expensive organization for the same need of 10,000 USD over 60 months.

Least expensive rate: 3.30% monthly payment: 180.80 USD cost of credit: 848.00 USD
Most expensive rate: 6.38% monthly payment: 194.26 USD cost of credit: 1655.60 USD

Or more than 800 USD more for exactly the same credit. And the organization offering the most expensive rate is undoubtedly one of the best known on the market. To get the best used car loan, you have to be very careful because in addition to the dealers are also part of it…

New car loan comparison

Likewise, new car credit deserves our full attention. Let’s take the same example with 10,000 USD over 60 months.

Least expensive rate: 3.00% monthly payment: 179.51 USD cost of credit: 770.60 USD
Most expensive rate: 6.38% monthly payment: 194.26 USD cost of credit: 1655.60 USD

As expected, the best new auto loan rate is cheaper than for the occasion, so the gap is even greater. An auto credit comparison allows you to immediately identify organizations that are not in the running.

Another important point

The sale of used vehicles has multiplied in recent years with the development of sites like leboncoin.fr or Centrale.fr. In this case, we always go through an organization or a bank to get a used car loan. It is even more important in this case to use a car credit comparison in this case. It usually takes between 1 to 2 weeks to get the credit money. There will not necessarily be proof of vehicle purchase to attach to the file.

Our advice for used car credit : do not hesitate to apply for credit online, it is not engaging but it is essential to know what real budget we can have and it saves time.

Concerning the new car loan, there will be the choice between the credit of the concession and that and financial organizations. We will describe the advantages and disadvantages of each in the comparative auto credit section of concessions and credit companies.

Car loan comparison: at what rate should you do it?

Car loan comparison: at what rate should you do it?

To establish a car credit comparison, the most important thing is to know what the ranking is based on. Indeed, many comparators offer false rankings whose only interest is the money they will earn. Fortunately, the law will soon change and force comparators to indicate what they base their classification DECREE No. 2016-505 on April 22, 2016.

The auto loan comparison that we offer is based on the fixed APR for all requests from 5,000 USD. Indeed, this legal rate defined by law since 2010 is the only one which obliges the credit organizations to integrate all the costs including the administrative costs. This rate is therefore the only one that allows us to clearly classify the offers from the cheapest to the most expensive and to offer a comparative objective auto credit.

For credit requests of less than 5000 USD, it turns out that revolving credits are very much cheaper than the amortizable loan. To establish our car credit comparison in this case, we base ourselves on the revisable taeg rate but also on promotional offers when there are and the repayment speeds offered which can lower the cost of a credit.

Car loan comparison: in concession or with a financial organization?

Car loan comparison: in concession or with a financial organization?

This question particularly arises when buying a new car. In fact, generally, for second-hand car loans, the car loan rates offered by garage owners are so high that there is really no picture.

However, to offer a comparison of auto credit between dealerships and financial organizations, there is a major problem: credit rates can vary from one garage to another. It is therefore impossible for us to offer a reliable car loan comparison between concessions and bankers.

To find out more about concession credits in a generic way, we have set up files on this type of credit by brand, such as with SERA for Renault or Credither for Peugeot Citroën.

We were able to observe that on average the credit of financial organizations was cheaper (there is one less intermediary to remunerate). But it is outside of promotional offers such as auto credit 0% where in this case, the credit of the dealer is unbeatable.

To be sure of getting the best auto loan in all cases, we have implemented a foolproof method:

  1. Get the best car credit on the web : nothing could be simpler, thanks to our exclusive questionnaire, you will get a car credit comparison but also and above all the formal proposal from the cheapest organization.
  2. Print or receive by mail the cheapest offer: this offer is not binding at this stage but it is the proof of the best rate that you can get by the largest credit organizations.
  3. Visit a concession to carry out a financing simulation : ask the seller to make his best offer without revealing your advantage for the moment.
  4. Get the best car loan rate : either the dealer can make the offer you have better, or you already have the best offer in your hands.

In any case, you will get the best auto credit rate.

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