5 Jan 2012

Auto Loans - Things to consider before it

Even if you have a capital, the purchase of a vehicle often requires taking out a car loan. In order not to have to take the time to learn from many organizations and compare different offers. For buying a car, two solutions are available: subscribe to a consumer credit, or, more commonly, take out a car loan, assigned only to the purchase of a vehicle. The credit can be self granted by a bank or through the auto dealer financing. The credit provided by car dealers are generally formulas including supplemental services for the purchase of the car, such as the guarantees of maintenance, repairs ... they can be interesting but often higher than the credit offers classic car. Here are some definitions to help you familiarize yourself with the language of the credit car.

APR (annual percentage rate): it takes into account the interests of themselves and all costs of insurance, guarantees, commissions and other costs. It must be stated in the loan offer, allowing you to compare offers.
Nominal: This is the base interest rate agreed between the bank and the maker of a car loan; it determines the amount of annual interest. It is only part of the blow of the credit.
Total cost of credit: they are all costs that the debtor must pay for the duration of the loan. The total cost of credit varies depending on the capital borrowed, length of credit, interest rates and the cost of insurance.
Whatever the car credit that you purchase, the amount of monthly payments is set at the time of purchase and remains fixed throughout the term of the loan. You also have the option to make an early repayment. The credit period usually varies between one and five years but may be higher. Plus the credit period is shorter; the cost of borrowing is reduced. To register a car loan you need to bring certain documents: an ID, proof of address, photocopy of last 3 pay slips and any other income, recent bank statements, proof of employment and Record of bank account. it is possible to withdraw from a credit within 7 days of the signing of the preliminary offer. To do this, you must send a letter of withdrawal, accompanied, if you have it, the detachable coupon attached to the form of prior offer of credit. You must send your letter by registered mail with return receipt to the financial institution from whom you purchased your credit. If the supply of credit and the sales contract are legally bound, the cancellation of credit resulting from the breach of contract vented.

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