To get your car loan at the best rate, there are a number of financial “recipes” to master: on the one hand, the elements on which you must pay attention before choosing a credit institution, and on the other hand elements that must be present in your contract.
Lower the cost of your car and motorcycle loans
If it is not necessary to have a personal contribution to obtain a loan, this is a determining factor in your negotiation. It allows you to negotiate a lower interest rate: the total cost of credit will therefore be lowered.
Compare credit offers
To obtain car credit at the best rate, it is necessary to compare the different offers made by credit institutions. To help you in your approach, we advise you to ask for identical elements in each credit institution, in order to constitute a good basis for comparison. Request similar loan amounts for the same loan period, under the same conditions (identical contribution, identical insurance or no insurance)
So, once you have the TEG of each offer, you can compare the different monthly payments and the cost of the credit, and finally choose the cheapest credit at the best rate.
The term of the loan
The shorter the term of your car loan, the lower the interest rates. We advise you to repay your loan quickly in order to reduce your costs.
Discounts on your car
Before signing your contract, do not hesitate to negotiate with your dealer either the price of the car or the options included. If your dealer is your lender, you have all the more interest in negotiating with them, armed with additional arguments. Do not hesitate to make competition between the various dealers to lower the price of your car or the cost of your credit.
Points to check
Be sure to check the following points on your auto loan contract before signing it:
- The Global Effective Rate (TEG)
- The term of the loan
- The amount of the monthly payments
- The procedures established in the event of early repayment
- The possibility of increasing or decreasing your monthly payments during the loan
- The amount of application fees
- The ability to defer monthly payments and defer repayment of the loan
- The insurances covering you, and the conditions of their application