The purchase of auto credit offers more flexible conditions for the reimbursement of his car. Opting for the online purchase of credit also reduces the cost of its car loan by avoiding the significant fees charged by conventional lenders.
A car loan to go upmarket
The average auto budget in France is around € 5,700. Faced with this item of expenditure – the third most important for French households, arbitration is necessary: new or old car? If a concession vehicle is more expensive to buy, its maintenance and consumption will be less expensive than for a used model.
Whether it’s a family vehicle to anticipate the arrival of a newborn baby, a bus to make long trips, or a city to travel around the city, buying a car new or recent allows to benefit from the latest innovations of manufacturers, in terms of safety and equipment. But this remains an important investment: about 24 000 € on average according to an annual study of L’Argus. The sale of the old vehicle can provide a significant amount to finance the purchase of a new car, but it will be primarily a personal contribution. Because the new model is usually a higher range. Hence the need to contract a car loan.
Auto credit: a specific product
With a duration of one to seven years, the car loan has certain specific characteristics, such as a ceiling of € 75,000, monthly payments and a fixed duration upon signature, or the possibility of a partial or total refund without interest. The auto loan, however, has the same legal status as consumer credit, being governed by the Scrivener and Neiertz laws. It is assigned to the purchase of a vehicle: the obligations of the borrower with respect to the lending institution therefore take effect only from the delivery of the car, and the credit is canceled in case of cancellation of the purchase. In addition, the car loan has optional insurance:
- death guarantee;
- temporary interruption of work;
- Job Loss.
The purchase of auto credit, a breath of fresh air for the budget
Auto credit affects the ability to borrow, and therefore the possibility of contracting a consumer credit to finance a new project. The auto loan buyback can reduce the amount of monthly repayments via a spread of debt over a longer period, or benefit from a lower interest rate to reduce its overall cost. In both cases, the purchase of auto credit gives air to the budget.
Purchasing power is increasing, but it is also an unavoidable solution to face a fall in income, and thus avoid over-indebtedness. The other significant advantage of a pool of credits is the simplification of budget management on a daily basis, thanks to better legibility of the accounts, with only one deduction on a specific date.
Online Credit Redemption: Savings at the Key
Online credit platforms offer a real alternative to traditional lending institutions such as personal loan platforms. Thanks to these new players, it is possible to benefit from a consumer credit at an attractive rate, as it is relieved of the fees, margins and commissions of conventional lenders. This new way of thinking about consumer credit carries no risk when the platform is approved as a credit institution by the Prudential Control and Resolution Authority (an organization attached to the Fancia Bank), which is the case of Creditstair. This company differs from credit between individuals because it is not a direct transaction between two individuals: the amount of money made available to the borrower is taken from the savings of investors platform.
The purchase of auto credit with Creditstair
The platform grants credits by releasing funds for the borrower who can then repay, with his new cash, his outstanding credits. With a credit platform like Creditstair, the study of the borrower’s file is carried out with the same requirement as any lending institution. Creditworthiness is the essential criterion, but the borrower must also be able to:
- justify a stable professional income;
- not having a history of payment or credit repayment incidents that have been the subject of FCC or FICP filings with the Fancia Bank.
If the file is validated, the platform makes the funds available and the borrower can use his money to pay off some debts.