When switching to the credit box, you must, first of all, choose the type of financing that suits you best: installment sale, installment loan, "balloon credit" or private lease.
Have you found the car and negotiated the price? It's good! But discounts are of course often not enough to pay for a new car in cash ... Most buyers always have to go through the “credit” box. And in this case, the first thing to do is to choose the type of financing to contract.
If you contact the banks, they will most often offer you the installment loan formula. The installment loan is a loan with a fixed term and fixed monthly payments. The period during which the loan must be repaid is defined in advance. Each month you have to pay a fixed amount, including interest.
Dealers, in most cases, leave the choice between an installment loan and an installment sale. The installment sale also allows you to buy a property by paying the price in several fixed monthly installments.
Among the automobile financing formulas, there is also the “ balloon loan ”, which has been very successful in the automobile market for a good ten years. The purpose of this credit formula is to reduce the monthly payment, sometimes after a down payment, while the last monthly payment, called the “balloon”, is higher. It is worth, depending on the contracts, from 30 to 50% of the purchase price of the vehicle.
Several manufacturers and leasing specialists offer leasing solutions for individuals. Concretely, this is a long-term rental with an associated rent. With private leasing, there is no down payment.