Category Archives: Car Loans

Evolution of loan interest rates – Car and vehicle loan

In the monthly comparison, October 2019 vs. September 2019, the revolving credit card went from 307.83% to 317.24% per year. With this, in a loan of $ 10,000, interest in the first month rose $ 21.39. The fall in the rate of non-payroll-deductible personal loans represented a reduction of $ 59.18 to a credit of $ 10,000. Futher reading at http://www.antiquestoveassoc.org/bad-credit-score-car-loans-need-an-auto-car-loan-for-bad-credit-no-worries/

In the table below, we show the annual comparison of the rates. Five of the eight modalities showed a drop in rates, the most significant being Non-Payroll-deductible Personal Loans.

In the chart below, you can see the significant difference between the modal spreads. Those of the modalities that present collateral to the lender are much lower.

 

Credit Card Revolving

Credit Card Revolving

Until mid-2017, the revolving credit card rate was significantly higher than the overdraft rate, but now, with the significant drop after the new credit card rules took effect, it has moved to a lower level.

However, in recent months, these rates have returned to an upward trajectory and, this month, staying above even the overdraft rate.

 

Unsecured Personal Loans

Unsecured Personal Loans

Non-payroll-deductible personal loan rates are much lower than those charged on overdraft and revolving cards. With this, this type of loan becomes interesting for those who are heavily indebted and can not get money in cheaper, but less affordable modalities like payroll loans.

Remember, as interest rates vary greatly from one bank to another, it is important to research the rates offered so that you can find the lowest possible.

 

Credit Card Installment

Credit Card Installment

In the case of card installments, the interest rate and spread remain at a very high level, with both the rate and spread hitting the all-time high this month.

 

Vehicle Financing

Vehicle Financing

This is a different type of credit than the previous ones, as it involves a guarantee, which is the financed vehicle itself. And because there is a collateral involved, the interest rates on this type of loan tend to be much lower.

From the graph, you can clearly see that rates remain significantly lower than at the beginning of the series. One explanation for this phenomenon is that the entire process of seeking and seizing the vehicle in the event of default (when the borrower fails to repay the financing) has become more agile and somewhat less costly for financial institutions.

With this, this lower cost is also reflected in the spread charged. Another explanation may be related to increased requirements and more rigorous credit analysis, so that loans with higher default risk (and therefore higher interest rates) are no longer granted.

This month, the average rate was only 0.19 percentage points above the historical low recorded in June 2013.

 

Payroll Loans

Payroll Loans

In a way, this is also a form of secured credit, as the installment is discounted directly from the payroll, not even entering the debtor’s bank account. Goodwell Bank data is opened in 3 types of payroll loans, namely:

  • Payroll deductible loans to private sector workers
  • Payroll-deductible personal loans to public sector workers
  • Payroll-deductible loans to INSS retirees and pensioners

As we can see in the next three graphs, INSS credit rates for civil servants and pensioners and retirees are lower than those for private-sector workers.

Again, the explanation is related to the risk presented by each type of customer. The private sector worker has the possibility of being dismissed, unlike the public servant, so there is a greater likelihood of becoming delinquent since when dismissed, the payroll will no longer occur.

Although the company may discount 35% of the termination amount to repay or repay the debt and a new interest rate is expected to be negotiated, the risk of default is higher and this is reflected in a higher interest rate.

In the case of payroll-deductible loan rates for the public sector and the INSS, both reached historic lows this month.

 

Tips

With interest rates on overdraft and credit card revolving at absurdly high levels, it is absolutely impossible to incur debt in these ways. For those who are owing money on these types of loans, they need to get out as soon as possible, either by selling a good or by borrowing money at a lower interest rate.

For those who have access to payroll loans, this is one of the forms of credit with reasonably low interest rates. Another possibility, for those who have a car (already settled) and can not give up owning one, is to sell it to be able to pay at least part of the debt and finance the purchase of another.

Obviously, the idea here is, as far as possible, to get a car cheaper than the previous one, after all, we are talking about a person who already has a tight budget.

Electric car loan, the best rate for the environment

The environmental issue concerns more and more people and in particular those who wish to acquire an electric car. But today what are the solutions to offer it quickly and at a lower cost? Apart from all the aid, can we make an electric car loan? Yes, but provided you take advantage of the best rate. Because there is no electric car loan as such. And when they exist, it is limited to a marketing way of presenting a car loan labeled “electric vehicle”.

To get the best rate for electric car credit, nothing could be simpler: we compare all the offers of the largest credit organizations. In addition, it will be possible to obtain a non-binding appraisal from the cheapest credit organization to find out whether it is actually possible to obtain the best electric car loan.

We will also detail in this article all the other borrowing possibilities but also all the financial aid that it is possible to obtain.

Electric car credit: get the best rate

Electric car credit: get the best rate

To find the lowest rate electric car credit on the internet, going through a credit comparison is the fastest and most advantageous option. Because on Capitaine Crédit, you will only have to fill in one questionnaire. We also give the possibility of choosing the three best offers of our ranking in one click in order to increase the chances of acceptance of the electric car credit. You will have to provide proof of purchase of the vehicle to add to the electric car credit file in case of agreement in principle from one of our partner organizations.

It is quite possible to buy the car without contribution to get the loan because as we will see, to lower the overall price, the old vehicle is often the subject of a special recovery.

Save on electric car credit

Save on electric car credit

An example of comparison will encourage the most reluctant to understand the interest of using a credit comparator before taking out an electric car loan.

An electric car has an average price of $ 20,000, bonus deducted. So let’s take an example of a car loan in the amount of $ 20,000 to be repaid in 60 monthly installments:

  • Lowest rate: 3.51% Monthly payment: $ 363.43 Cost of electric car loan: $ 1,805.80
  • Highest rate: 7.56% Monthly payment: $ 398.96 Cost of electric car credit: $ 3,937.60

More than $ 2,000 difference between the first and the last offer in our ranking for exactly the same electric car credit. And the most expensive organization when we carried out this survey is far from being the least known…

Electric car loan: the alternatives

Electric car loan: the alternatives

The electric car loan in concession

Many credit offers are made by dealers throughout the year, as can be seen regularly in TV commercials. At first glance, they seem to benefit from the best offer. But beware, because some often hide obligations to be respected, such as a very short repayment term or compulsory insurance not always useful but which remains expensive.

The best thing to do to take advantage of the best electric car loan offer in dealerships is to keep yourself informed by checking all the conditions of the loan offer (monthly payments, additional insurance included, options of the car covered by the credit, etc.). ). But above all, do not neglect the possibility of negotiating. For more information, read our article auto loan at 0% APR fixed rate.

Banking is also a good option

An electric car loan can just as easily be obtained from his bank. For this, it will still be necessary to have a good professional and financial situation to hope to have an agreement from the bank. And even in this case, going through a comparator will make it possible to have a first agreement in principle with a specialized organization offering a very attractive rate.

Getting a first new car credit agreement at the best rate on the web will help prepare for negotiation with the banker. Either it does better, or you already have the best deal in your hands.

Aid for the purchase of an electric car

Aid for the purchase of an electric car

With the aim of preserving the environment and reducing the cost of purchasing an electric vehicle, numerous aids have emerged to encourage the French to cross the threshold of the electric car. Find out about the assistance you need before getting into an electric car loan to be sure of the total amount to borrow.

Regarding the purchase of a used electric car, certain organizations offer specific used car loans.

The ecological bonus up to $ 6,300

It consists in rewarding the purchasers of new cars emitting very little CO2 and conversely, it penalizes the purchase of excessively polluting vehicles. This bonus which can go up to $ 6,300 (CO2 emission <20g), in particular for electric cars, will in most cases be directly deducted by the seller when purchasing the vehicle (as seen in the example). Please note, because this aid cannot, however, exceed 27% of the total cost of the car purchased including tax. 

The super bonus of up to $ 10,000 (ecological bonus included)

This aid, additional to the ecological bonus, allows for the replacement of a diesel vehicle over 10 years old by an electric car to benefit from a conversion premium of up to $ 3,700. Bringing the total premium to a maximum of $ 10,000. 

Tax credit up to 30% for the installation of a charging station

There is one last national aid for the installation of charging stations at home (no impact of the amount of the credit car electric car). More particularly in favor of carrying out energy improvement works for private dwellings. The percentage of the tax credit obtained will then be deducted from income taxes, the year following the installation work.

Regional aid

There are also local aids, and to find out about them and benefit from them, we invite you to visit the website for your region or to inquire directly with your town hall, prefecture or regional hotel.

Some insurances also lower their costs

Some insurers have decided to go in the direction of the state by offering more attractive rates for buyers of electric cars. Refer to your insurance to find out if the latter gives the right to a reduction in the cost of insurance, following the purchase of an electric car.