A methodical choice of car credit saves time and money. For a better approach, it is necessary to understand some essential points namely regulation, vehicle financing, purchase on credit, comparison, amortization schedule and insurance.
Auto Credit Regulation
The choice of a car loan is notified by a contract between the financial institution and the person concerned. The latter is entitled to 15 days of reflection before signing. This period allows him to study the terms of the contract. After signing the prior offer, the individual has a withdrawal period of 14 days, a form is provided for this. The lender is required to keep a copy of the prior credit offer. Also it must respect the established reference rates. If for some reason or another, the individual is no longer able to honor the contract, the two parties agree amicably via a debt commission. The over-indebted therefore no longer pays compensation on early repayments. He also cannot redeem his credit. The financing options available for the purchase of a new or used car are: cash purchase, conventional credit which can be personal or affected, balloon credit, auto packs with their all-in-one offers one and rental with option to purchase. To recognize which one is right for you, simulation is essential. You can do it online.
Taking risks into account is important when choosing your car loan offer, so these elements must be taken into account to subscribe to the offer offering the best conditions but also modalities adapted to one’s needs.
The amortization table
It allows you to control the expenses allocated to car credit. Each monthly payment is detailed. Developing the amortization schedule requires knowledge of the interest rate. This table shows on the one hand the amortized capital which increases over time and on the other hand the interests which decrease progressively. Thus, you will know the value of the amortizations of your credit and in addition, you will be able to calculate your interest and your capital amortized at each repayment and at maturity.
Here’s what a depreciation table contains:
- The monthly number
- The remaining amount due and the interest paid for each monthly payment
- The capital repaid on a monthly payment
- The monthly value of insurance
Do several simulations on different amortization tables to see which offer is right for you. Auto credit insurance is not compulsory. However, it covers unforeseen events such as unemployment, disability or death. It is added to the monthly interest rate. As far as the insurer is concerned, you have free choice.