More and more consumers are preparing to apply for a car credit to finance the purchase of a new or used vehicle. Faced with the term of the loan. When faced with the choice of the duration of the loan, buyers often find themselves in difficulty, especially when, for example, it is a question of comparing the loan offer with a lease. What are the advantages of short, medium or long term financing when it comes to financing the purchase of a car? All our explanations and advice.
Why choose a credit and not a lease?
If the solution of a leasing is today the most popular method for the purchase of a vehicle, the choice of the private loan increasingly attracts the buyers. But let’s see in detail this method of financing:
- It allows to finance the vehicle in whole or in part. For example if the buyer already has funds, he can apply for a private loan to complete the missing amount for example.
- It ensures total freedom for the buyer in terms of the make and model of the vehicle, but also as regards insurance (full or partial helmet), and also allows you to resell the car at any time.
- Avoid having to re-purchase the vehicle at the end of the contract (or to resume a lease).
- Finally, it allows tax deductions that can prove interesting.
Buying a car with a credit, all the benefits
As explained by the Lite Lender company on its website in the section dedicated to auto credit, choosing to apply for a loan to buy a new car has numerous advantages. Consult the section of this site to find out more.
Financing from 12 to 24 months
A short-term loan is in principle reserved for customers who have a sufficient budget to guarantee a high monthly repayment and therefore allow to reduce the interest to be paid. It is also a good solution for people who are looking for a cheap vehicle or already have their own funds. Indeed a short-term credit:
- It allows to reduce the total interest and consequently the “cost” of the credit
- Monthly installments are higher
Financing from 36 to 48 months
This type of medium-term financing is one of the most balanced solutions, because it avoids excessive total interests and at the same time guarantees a controlled monthly invoice:
- Total interests balanced
- Balanced monthly installments
Financing at 60 months and more
Choosing a longer repayment term allows you to decrease the monthly cost, but it implies a very high total interest cost. For a type of long-term loan, it is therefore important to benefit from the lowest rate possible. This type of financing
- It allows to reduce the monthly cost
- It has a higher total cost
Who to contact?
As always, the best solution is to appeal to a specialist. Lite Lender also offers auto credits at the best rate, guaranteeing the free analysis of each applicant’s dossier. More than evaluating an offer, it is particularly important, for example, regarding the choice of the repayment period, to have a real consultancy service.