Cheap car credit: how to find the best rate?
How to find a cheap car loan and finance your vehicle without breaking the bank? Who can you trust to find cheap car credit between credit organizations, banks and even dealers? Bankate goes around the market for you and brings you the best offers and advice to get the best car loan rate.
Where to find cheap car credit?
You want to buy a new car or a new motorcycle but you want to be sure to find the cheapest car loan? If you have not already precisely identified the vehicle you want, you must first define what monthly budget you want to allocate to the repayment of your cheap car loan.
Once you have defined your monthly budget and therefore the amount that you are ready to repay every month for your cheap car loan, choose the repayment period according to the total amount you need to buy your car. You will just have to use our credit comparison tool to find a cheap car loan to finance your project. You will even have access to the ranking of the best credits on the web.
As a comparator, we regularly record all of the lowest car loan rates practiced by the largest credit organizations . We classify them according to the APR, the annual effective annual rate, which includes all the credit costs, both interest and administration fees if applicable. It is the guarantee of getting cheap credit.
To multiply the chances of obtaining a cheap car loan, we have created an exclusive credit questionnaire which will allow you not only to obtain the classification of the best cheap car loan but also to question several organizations in 1 click in a non- engaging and thus make sure they accept you for the proposed auto credit rate.
We have also developed a unique system that allows a non-binding assessment to be obtained from the organization that offers the best rate of car or motorcycle credit. You will therefore know if you can concretely obtain this offer or if you have an interest in also questioning the organization which offers the 2nd best rate and the one which offers the 3rd best rate. It is not engaging and it increases the chances of concretely obtaining the best rate cheap auto loan tailored to the project.
Cheap car credit: used and new
If you want to buy a new vehicle, all you have to do is choose “car loan” in our simulator. If you want a used car loan , you will have to select “personal loan”. Why such a difference to get a cheap car loan?
Credit organizations, banks or dealers offer more attractive rates on new vehicles because they know that in case of default, they can seize the vehicle and resell it at a good price to repay the debt that remains. For used vehicles, it is much less secure, so the rates are slightly higher and correspond to the personal loan rates.
Unlike credits without proof of use of funds, cheap auto credit for a new vehicle must justify the purchase of a vehicle by a copy of the order form or the gray card to be provided in the credit. This is not necessarily the case for a used car loan.
Cheap car credit: banks and dealers
As you can see, banks and dealers are not included in our cheap car credit comparison. The main reason is that the vast majority of the year, banks and dealers do not offer competitive rates. The reason is quite simple: they are not credit specialists and even less cheap car credit.
There are, in addition, specific reasons why banks and dealers generally fail to offer a cheap car loan.
Banks: no cheap auto credit
For banks, the right way to assess a client’s risk is to know it very well. This means that banks can offer competitive rates provided they know you very well and that you are a good customer. Clearly, you must have on average at least ten years of seniority and savings and there you are an interesting client on which they will make an effort on the credit rate.
But under these conditions, it is impossible for us to integrate them into our rankings because the rate of cheap car credit that they would offer would be refused to 95% of our customers which would distort our simulation of cheap car loan and that would disappoint all our customers .
Dealer: cheap car credit during the promotion period
For dealers and their financial subsidiaries credit, the problem is different. It sometimes happens that it offers cheap or even really cheap auto credit once a year during commercial credit promotion operations.
At that time, the rates can be really low. We simply advise you to be wary of 2 things.
The first, the most important, is that to do this credit promotion and lower their rates a lot which is generally more expensive than conventional credit organizations, it is the dealers who bear this drop in rates. However, they will logically not want to give up their margin everywhere … so in times of cheap car credit in dealerships, beware of the discount you will get on the price of the car!
The second point on which we must be vigilant during a period of cheap car loans in concession promotions is the duration of the credit on which the promo rate is offered. Indeed, it is generally at most a period of 36 months. However over this period, the monthly payment risks exploding. For example, on a 15,000 USD loan, this gives a monthly payment of more than 440 USD. At that time, they will explain to you that it is better to leave over 60 months or 72 months … but there … oddly … there is no more rate promotion and we are no longer at all in cheap car credit !!
Negotiate your cheap car loan
In any case you may want to negotiate your cheap car credit and you are right. As we have just seen, garage owners and banks are generally not competitive but it can happen. If you want to be clear, here is the technique we have developed to get a cheap car loan for sure:
- Get cheap car credit at the best rate on the web from the largest specialized credit organizations thanks to our comparison tool
- Receive the formal offer from the cheapest organization
- Go to your banker or dealer
- Ask him to do better than the offer you already have
- Either it can do better and you get the best rate or you already have the best offer of cheap auto credit in your hands
Conclusion: in any case, you will get the cheap car loan offer at the best rate thanks to our comparison tool.