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Do you need to buy a new car and are you wondering what is the best way to pay for the car? Well, you’re in the right place. Here we provide you with all the information to choose the Best options for car financing to buy a car. 

But be careful that it is not said that the fastest financing to be obtained is also the best. For this, we want to give you a complete picture of all the ways in which you can buy a car so that you can choose independently.

Below we analyze all the possibilities that the financial market offers us, starting from the fastest method and arriving at the slowest one.

Do you want to quickly compare the best online loans for car purchases? In our opinion, Crystal is one of the most complete and easy to use comparators.

We would like to be able to give you a dry and unambiguous answer, but on this topic, the offers vary continuously, also in relation to the needs of the customers and the type of vehicles and amounts being discussed. and as already mentioned, the fastest loan to obtain is not necessarily the best, at least in economic terms.

For some, it may be more advantageous to financing from the manufacturer, for others it is better to evaluate the sale of the fifth. Precisely because the choice is difficult, we want to give you the information you need to move independently and to know how to choose the best loan for you.

We, therefore, recommend that you read this article before making a hasty decision. Enjoy the reading.

How does the loan to buy a car work?

Here’s how the loan to buy a car works.

When you go to the dealer, whether you are looking for a new car or a used one, it is very likely that you will also have financing offers that are called finalized because they are intended for the purchase of the car and, for this reason, the money is paid directly to the dealer. This is definitely the fastest loan to buy the car. If you are in a hurry, read the paragraph below immediately.

We advise you to evaluate these proposals well and to compare them with other types of loans for the car that you can independently request online or in person.

You can get quotes for personal loans (and therefore not finalized to purchase) or you can also make an assessment on the assignment of the fifth, another interesting option because the money requested is not finalized for the purchase and is therefore paid to you, applicant, then you will have to pay the dealer. So you could also make a higher amount request to return other small expenses if you can use it. Make your request here for the sale of the fifth.

Do you want to quickly compare the best online loans also for car purchases? Choose this excellent comparator.

Financing to buy a new car

To buy a new car, you have more possibilities. We see below in detail the possible car financing. The first thing to remember is that the finalized loans do not cover the whole amount, but generally up to 80/85% and that they are not payable to protesters or bad payers. 

Faster car financing: loan from the manufacturer

The first finalized car loan that we want to present to you is what the manufacturer will want to do to you. This is the fastest car loan you can have. Go to the dealership directly with an identity card, tax code and the last two payslips and you’re done. It will be the car dealer who will handle the loan deal for you. If you do not propose a loan directly from the manufacturer, surely it will have to show you financing finalized with financial agreements.

The financing from the manufacturer is called ” captive “and is the brand finance company created directly by the automaker. This financing gives you the possibility to buy the machine with an easy method, by having the dealer do the job directly, who takes care of everything. You will only have to present a demonstrable income (such as paycheck or cud). 

How to know which financing is appropriate?

We always advise you to make more estimates and compare them. Consider how much you’re going to spend in total at the end of the loan. Make a simple calculation by multiplying the monthly amount by the number of months of the loan term. At this value subtract the value of the car.

The difference will be the real cost of the loan and you are certainly looking to spend as little as possible. Therefore, beyond the simple words, take in hand paper, pen, and calculator and do your accounts. The targeted loans we have seen above tend to be fast and are also the best in terms of costs. But let’s see below how to evaluate them based on TAN eTAEG. If you want to learn more about how to calculate the effective interest of a loan by analyzing TAN eTAEG, read our article.

Zero-interest car financing

Like the zero-interest car loan proposals, you have to be careful. It looks like a great opportunity but it is not always. This type of consumer credit is very frequent to entice the customer to purchase by paying in installments.

To understand how zero-interest financing works, we need to analyze the TAN ( annual nominal rate) and the APR (Annual Global Effective Rate).

You can find 2 situations in general:

  • TAN and APR equal to zero. In this situation, we talk about financing at zero installment rate and actually, it is advantageous because the costs of the preliminary investigation, ancillary expenses, commission for collection (APR) are borne by the retailer;
  • in general, the most frequent proposals on consumer credits are zero-interest loans. The value that is reset to zero is the TAN, ie the monthly value of the interest share. Instead, it remains to pay the APR which includes the costs of the practice. So this is the percentage to evaluate well to decide the best financing. The lower the percentage, the cheaper the financing is.

In general, a zero-rate loan can be obtained up to a maximum of € 30,000 for 5 years. The amount that can be financed does not exceed 80 – 85% of the car’s value. 

We must make all the possible assessments on all types of loans to try to spend as little as possible over the years. For the purchase of a small or medium-sized machine, you can even pay € 3,000 more than the value of the car.

Car loan with a fixed-term contract

You have just started work and have made you a fixed-term contract with the promise that they will renew you indefinitely. So the prospects are excellent, you have an income and now you can afford to buy even a car.

We can tell you that you are in a favorable situation because you have a paycheck, but the banks still are not calm to lend you the money because your contract is fixed-term. You must not be discouraged though.

The bank will meet you if you bring a guarantor. This guarantor can be your relative or friend, he must not be a bad payer and must have a demonstrable income.

Even in this situation, we advise you to consider buying a used car so that you can pay off the loan more easily. When they make you a permanent contract, after 6 months from the signing of the contract, you can think about changing cars and taking a new one.

Loan for private car purchases

Is it possible to have a loan to buy a car from a private individual? Of course yes. You can get a quote for a personal loan or you can evaluate the sale of the fifth.

When it comes to these 2 types of loans, you don’t have to communicate the purpose of the request. Consumer loans are defined that are not linked to a specific purchase. If following the feasibility assessment, you have a positive outcome, the money will be paid directly to your current account. You can then decide whether you want to allocate all or part of your machine, regardless of who the retailer is.

We hope to have given you all the information you need to better evaluate the loan or loan to choose to buy your car.

Are you ready to evaluate some car quotes? We advise you to consult Crystal for a concrete comparison.