Buying a new vehicle is a pleasure that comes at a cost, and this necessarily implies a financing solution. Financing a new car can take many forms, depending on whether you want to own or simply lease the vehicle.
Cash payment for a new car
Some households have the means to finance their new vehicle themselves thanks in particular to their savings. If their bank accounts are sufficiently provisioned, they can if they wish to make cash payment for the car.
This involves immediately unlocking the full amount of money claimed by the seller in return for the sale of the vehicle. This solution saves interest on loans.
For those who cannot afford to pay for their new vehicle in cash, there is a simple and effective solution: car credit. This solution for financing a new or used car belongs to the category of affected loans. This means that it is a loan granted by a bank or a credit institution for the acquisition of an automobile.
This loan cannot be used for anything other than the financing of the vehicle for which it was granted, with a quote and invoice in support. One of the advantages of the new car loan is that it protects its holder against the vagaries of the sale since its reimbursement does not start until the vehicle is received and provided that it functions normally.
As the new car loan, personal loan is an easy and effective means of financing. But unlike the previous method of financing, the personal loan is not an assigned credit, which means that the borrower does not have any supporting documents to provide to use the funds released.
This allows the buyer of a vehicle to borrow a sum of money greater than the purchase price of the vehicle, in order to finance projects other than the purchase of the vehicle in question. It, therefore, offers certain flexibility. The borrower’s protection is, however, less than with a car loan since it will have to start repayment immediately, regardless of the vehicle’s operating condition.
New car loan
Those who do not wish to own their vehicle will be able to opt for new car loan solutions such as rental with option to purchase or long-term rental. In the first case, the rental contract allows you to drive in a new vehicle for a lower cost than the purchase, with the possibility, at the end of the rental period, of buying the vehicle.
In the second case, the contract provides for the rental of a new car for a fixed period, with no possibility of the purchase at the end of the rental period. Here as in the previous case, the advantage lies in the savings made in terms of rent and vehicle maintenance costs.