When you want to buy a car, you have several financing options. In the beginning, let’s set general conditions: the car will not cost less than 10-15 thousand PLN with additional fees (insurance, registration, taxes). Everything that is cheaper should be financed from cash stocks.
Application for a bad credit car loan
A bad credit car loan? Well, there are car lenders.
Usually, a car loan can be obtained directly from the dealer, although the financing rules can be very different there. Today, dealers are also more likely to offer personal leasing combined with mechanic services or a cheaper insurance package. In the case of a new car, it is also worth reviewing the offers of car loan loans. Calculators, thanks to which it will be possible to calculate the number of installments for a car in particular banks, will give an answer to the question whether there is anything to fight for at all. It happens that in a car dealership the car is cheaper than in bank loans, but this is not the rule.
Credit for a car up to 10 years
Ten-year cars in just a few banks will be able to be credited. In general, credit and leasing are similar in this respect: financing cannot be granted for a car older than ten years, and the repayment period plus the age of the car must also be less than 10 years. In practice, this means that a ten-year-old car must be repaid. Of course, this is only an example of the most frequent record, while in individual banks it may be slightly differently formulated. Nevertheless, one should not count on a more liberal approach.
In the case of not very old used cars, however, we have two options to choose from car loan (with collateral) and cash. Theoretically, in the first case, the interest rate should be lower, but if you look at the proposals for cash loans in the promotion, you may find that even a cheap car loan will not be better. However, it should be remembered that both forms of crediting differ from one another in the technical provisions of the contract. In the case of a cash loan, the car is usually direct security for the loan, which may complicate the possible enforcement proceedings.
Loans for cars older than 10 years
Car loan for a vehicle older than 10 years is a rarity in Polish banks. You can look for such in Gilpin, but here you can count the offer on the fingers of one hand, so the only reasonable solution is a cash loan. The situation is analogous to the example above, but you have to be aware of one thing: when you take out a car loan, the vehicle is essentially the collateral for the claim. Therefore, the amount of credit depends on the market value of the car.
In the case of cash loans, there is no such relationship – if you overpay for the car and later the bank decides to proceed with enforcement, the car itself will not have enough value to cover the liabilities, so it is always worth first checking the value of the car and review the car loans for older cars .
The best cheap car loan
A cheap car loan is theoretically an ideal way to finance a car that you can not buy for cash. In this case, however, the borrower also bears some risk. The decision about the purchase should be preceded by a detailed analysis of the loan agreement, because in the case of car loans the only thing you really buy is a loan, and the car – well, you buy, but the bank will always have something to say in this matter.