If you want to buy a car but you do not have enough money at the moment, you can take out a car loan. This loan is usually taken out as a personal loan because the loan amount has a specific purpose and that is to finance your new car. The car loan is very common because the car is often a necessity for many people. If you had an older car and it suddenly broke, it may be necessary to take out a car loan. If you have a BKR registration, it is still possible to get a car loan, but you should carefully consider what the options are for you in this situation. Not all Credit Providers will want to give you a loan, but some may want to do so. There are various loans possible to get money for a car. This does not necessarily have to be a personal loan. There are also possibilities with lease constructions or a revolving credit, although a revolving credit is not common for a car loan. In addition, you can also use your car as collateral so that the lender is more willing to grant you a loan.
Do you want to borrow money for the purchase of a new car or a second-hand car? Or do you have a major repair for which you want to borrow money?
View the options for a car loan
On the TV you probably see it sometimes: “The new Ford, Volkswagen, Seat or Opel etc .. now for only 4,999 euros” and then you can pay the remaining amount next year. This sounds very attractive but you have to pay attention to what interest you pay AND what conditions are attached to it. For example, you may not have to pay interest on the remaining amount, but you must take out a relatively expensive all-risk insurance policy with the car dealer. This is therefore also a form of the increasingly common car loan. Sometimes there are also possibilities that you can pay off the car within 5 years with a fixed amount that you have to pay off annually. In such cases, you actually borrow money (in the form of your new car) from the car dealer or from the finance company affiliated with the car dealer.
Options to finance your new car
As mentioned, the car loan is common because it can be a luxury product, but it can also be a bitter necessity for many people. Because the personal loan is often used when taking out a loan for a car, it is good to take a closer look at the personal loan. One of the features of the personal loan is that you get the entire amount of money directly into your account. This is therefore different from a revolving credit where you can withdraw the money and repay it whenever you want. Another characteristic of the personal loan is that the loan has a fixed term. So you know when you take out the loan when you must have paid off the loan. This means that you have to pay a fixed amount every month and you have a fixed interest. This form of loan has structure and gives more security, so some say that this way of borrowing is safer. But despite that still applies: borrowing money costs money.