The purchase of a new or used car can take place by taking advantage of the various types of loan available, without depriving yourself of a good slice of liquidity. If you choose the path of financing you have a first choice to make: leasing or financing in the strict sense which, in turn, can be personal or finalized. Each type of loan can present pitfalls, which if known can easily be avoided. In addition, in recent years, forms of light leasing have spread, which summarize the main characteristics of this type of financing, combining them with the main characteristics of long-term rental. term. So the choice has become richer in alternatives, but also more complicated.
In the case of leasing: pay attention to the redemption and brokerage costs
With a leasing contract, the buyer does not immediately become the owner of the car, but only at the conclusion of the contract, given that the asset is purchased by the leasing company which then makes the asset available behind the payment of the lease installments.
So you have to see to what extent this service is distributed over the financed (higher interest rates or the presence of brokerage costs). The related items must be reported in the contract (but are often omitted on partial estimates that are only indicative). Furthermore, there are significant differences in the incidence of interest depending on whether there is a high or low redemption price and on the presence of a percentage to be paid as an advance. Even on the advance that must be paid, the percentages can be very different, but hardly drop below 10% of the total amount requested with the car loan. Obviously, the percentage of the advance payment will depend on the percentage of the redemption cost.However, it must be stressed that the leasing does not oblige to become the owner of the car, since the possibility is given not to pay the ransom by leaving the vehicle to the leasing company. These cars are often then sold as used with traditional auto loan agreements.
In all cases it is necessary to get the various types of printed quotes, so as to compare them, demanding, among other things, the quote in accordance with the law which must include all the cost items.
Finalized loan or personal loan
The finalized loan usually has lower interest rates than the personal one, but requires the inclusion of the surety clause in the insurance contract. Some companies charge this “service” a few tens of euros more. Then one must also pay attention that the finalized loan is really such, and does not instead represent a form of personal loan “adapted” for more specific purposes.
In fact, it is not even said that the car loan proposed by the dealership is finalized, just as it is not said to be the most convenient.
Regardless of the possibilities offered, before signing the contract, you must have more than one quote made, so that you can compare them and, in any case, request a copy of the contract.
In this specific case, you must also be careful of the presence of the “contract release” costs that can be foreseen (and could be omitted in the estimate), since they must be paid regardless of whether or not you agree to make the loan .
Zero-rate financing proposals
Finally, there are the so-called zero-rate financing proposals. It is useless to underline that they are not real solutions without interest and for this reason it is necessary to carefully read the conditions related to the access of the proposal, since in many cases high advances are required, in order to then pay small installments at interest rates. zero and, again, being faced with a large installment with very onerous refinancing.
Of the numerous items that are often omitted in the quote, the following should be noted:
- the collection costs rid and those for periodic and mandatory communications (which, however, are subject to payment);
- any extinction costs;
- the costs associated with a credit insurance.
In the event that these items do not appear in the estimate, therefore, it should not be taken for granted that they will not be reported in the loan agreement.
What are the cheapest car loans?
The big car companies often belong to groups which also have their own internal banks or financial companies such as Fca for Fiat, Renault and Dacia Finrenault or Volkswagen Financial Service, etc. The proposed loans are generally cheaper, because the total profit is “shared” between that linked to the sale of the car, and the interest rate on the car loan granted. Among other things, this type of financing follows softer evaluation lines than an external financial or bank.
In these cases you can also count on hybrid forms, which take advantage of the characteristics of leasing together with those of long-term rentals and which offer the possibility of deciding whether to: become owners, change cars after a period of time (even with value protected vehicle), return the vehicle without other obligations.
It may be interesting to take advantage of the formulas that also allow maintenance and insurance coverage to be financed. In these cases, however, it can be more complicated to understand the convenience from a purely electronic point of view. In fact, it is no longer possible to make a simple comparison between two “estimates” with almost identical conditions. The components and characteristics of insurance and maintenance are in fact highly customizable.
In these cases, the usefulness and added value that ends up being able to exploit by choosing a particular type of “car loan” generally offered in the form of “service packages” with payment in installments, must be assessed according to the real needs that have, and with a view to future savings. In this regard, it becomes important to evaluate the costs for ordinary and extraordinary maintenance agreements (it is good, for example, to check which types of expenses refer to if they are spare parts, or to the workforce or both, etc.) and , where present, the “protected value” option of the vehicle, which therefore does not devalue according to the whims of the used market.