car dealerships no credit check no down payment
ith rates below 1%, borrowing to buy a car has never been better. These favorable conditions are pushing more motorists to turn to car credit. Figures from the Professional Credit Union show that last year 192,000 cars were purchased via an installment loan .
It is also possible to borrow to buy a used car, but the conditions are less favorable if the vehicle is more than two or three years old. Last year 107,000 used cars were purchased on credit. As these figures show, car loans are clearly on the rise: since 2013, we have seen an increase of 14%, and for used cars, it has been close to 13%.
The number of credits is not the only one to increase: the amounts borrowed follow the same path. For example, BNP Paribas Fortis granted no down payment car lots car loans amounting on average to 17,971 euros per file in 2017, against 15,233 euros in 2015. The amount borrowed is indirectly proportional to the age of the car. At ING for example, the credits taken out for the purchase of a new vehicle amounted on average to 19,159 euros, and 17,492 euros for a second-hand car less than two years old, and to 9,871 euros for other cars. opportunity. According to a Wikifin.be survey carried out as part of Silver Week, reimbursements amount on average to 463 euros per month (auto + motorcycle credits).
With the low rates, borrowing can be attractive, even for those who can pay their car cash . The Wikifin.be survey also indicates that more high-income households (more than 3,000 euros per month) borrow to finance their car (44%) than low-income households (25%). These credits allow borrowers to keep a financial mattress for unforeseen expenses, without forgetting that it is possible to deduct fiscally a part of the interest paid (read below) and obtain a higher return by investing their money. On average, 37% of Belgians have (already) taken out a car loan, against 49% for the purchase of a house, the only loan more popular than car credit.
It is of course possible to apply to your banker for financing, but other channels are also possible. " Most car manufacturers offer financing services which are part of their commercial arguments. They generally apply interest rates lower than those of banks, " explains Philippe Decrock of Traxio, the federation of the automotive sector and sectors related (formerly Federauto). Some dealers even offer 0% credit. Among conventional financial institutions, the best offer today is that of the niche bank Beobank, with a historically low rate of 0.65%. But beware, the rate is not everything.
" An (almost) free credit offered by an automobile brand often means that you have to sacrifice all or part of the price reduction generally granted on the sale price of your new car. Furthermore, the seller will be less generous with the free options or take back your old vehicle at less advantageous conditions. In an ideal scenario, it is better to negotiate first the price of the vehicle and the possible free options before starting to compare the rates of the different credits, "advises Philippe Decrock.
Auto loans have one of the lowest percentage of consumer defaults . In the event of default, the car may be confiscated by the creditor. Those who do not want to run any risk can link their outstanding balance insurance to their credit which can protect them in the event of death, serious illness, incapacity for work and / or loss of employment.
The vast majority of auto loans are installment loans, which are offered by both financial institutions and builders. This usually means that you repay the same amount every month for a predetermined period. "The car loans offered by garage owners and manufacturers are generally shorter than bank loans. The maximum duration of a 0% loan is 60 months," says Philippe Decrock, of Traxio (ex-Federauto). Many banks offer loans of up to 120 months. However, there are certain legal restrictions: for example, amounts up to 10,000 euros must be reimbursed within 48 months maximum.
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