Buying a car without contribution is no problem. However, does this increase the cost of financing? Will the car loan rate be the same? For the new and the occasion? Let’s see how to get the best auto loan without down payment.
NB: We have carried out a more general study on the credit without contribution. The conclusions are that the contribution has mainly an influence in the mortgage. As we will see, financing a car without contribution has especially an influence on the total budget for the acquisition of the new vehicle. Having no contribution has little influence in obtaining a car loan.
Purchase of a car without contribution
The car is an essential good in daily life whether it is to go to work, take the children to school, go on vacation, etc. Given the average sale price of a car, around 22,500 USD, its purchase is not neutral when compared to the average annual income in France: 25,000 USD. This is the reason why, the purchase of a car without contribution is the first reason to subscribe to a consumer credit.
According to a survey carried out by Sofinco in 2013, 38% of French people with consumer credit subscribed to it for the purchase of a car without contribution or with, notably thanks to a repossession of vehicle.
Buying a car on credit?
In order to be able to find the best auto loan rates, with or without contributions, we have developed a credit comparator which reads all the rates from all the major credit organizations. Our exclusive questionnaire will also allow you to obtain an evaluation of the possibility of actually obtaining the best rate for your project.
If you are in the case where you wish to make the purchase of your car without contribution or that the situation makes that it is like that, the solution which is offered to you is to finance it by a car loan, loan to the consumption frequently the most advantageous in terms of rate. To be able to benefit from a car loan without contribution, you will have to justify the use of the loan by providing the order form for a new vehicle or the unbroken photocopy of the gray card for a used vehicle.
If you have questions about rental (LOA LLD or Leasing), we advise you to read our article devoted to LOA without contribution which demonstrates that what costs the least is a car loan.
Car without contribution, what credit rate?
A little concrete always speaks better than long speeches. If you want to finance your car without contribution, you are probably wondering what rate you can get and what is the point of going through a comparator. Take the example of the most requested car loan to finance a car without contribution: a 15,000 USD loan over 60 months, here is what it looks like:
Least expensive rate: 3.90% monthly payment: 275.11 USD cost of credit: 1506.60 USD
Most expensive rate: 7.89% monthly payment: 301.41 USD cost of credit: 3084.60 USD
More than 1500 USD more for exactly the same car loan without contribution !!! You could pay double for the exact same thing !!!! And for the most expensive credit, we did not go to look for an unknown small organization. You see him daily advertising on television !!!
We hope that this demonstration will at least have the effect of making you compare before choosing your car loan without contribution, whether the car is for a used car loan or for a new car!
Why trust us?
After all, you have the right to ask yourself this question. Why would we be legitimate to offer you a comparison car credit without contribution?
Well first of all, as you will understand, it is not directly us who offer a car loan without contribution. We are a credit comparator that simply allows you not to be fooled from one organization to another and that helps you find the best rate.
Then we are not just any comparator! We are one of the few to present an objective ranking in relation to a rate. Most of our competitors are content to present a similar classification but the rate is not included. And for good reason, their ranking is simply a reflection of the importance of the commissions they receive from the credit agencies.
So if you don’t want to be tricked, check that a rate is displayed in the ranking. We have chosen to display the APR overall annual effective rate which is the benchmark defined by the last law on consumer credit.
We also denounced these practices to Credither, which took us up in the article opposite.
In any case, on Bankate, you do not make any commitment, except the risk of finding the car loan without the cheapest contribution.
Purchase of a car without contribution: is it possible?
If you take out a car loan for a new or used car, you will not be asked if you have a contribution. Whether or not you have a down payment will have an influence on the amount of the loan you will apply for and consequently on the proposed interest rate and your chances of obtaining credit.
Indeed, any credit organization is under the obligation to calculate your debt ratio and therefore the maximum monthly payment of the car loan for the financing of your vehicle; if you exceed a certain threshold, the organization will refuse the loan so as not to put yourself in a precarious situation and at risk of over-indebtedness.
In conclusion, the purchase of a car without contribution is therefore quite possible by taking out a car loan.