Although the Spanish automobile market is growing, the level of sales is still below the European average. In Spain, the sales ratio is 15 vehicles per 1,000 inhabitants, while in the rest of the continent 35-40 cars per 1,000 inhabitants are sold. However, now it is one of the best times to buy a vehicle : the entities offer large loans to finance a car or a motorcycle that we can get without being clients and without having to contract linked insurances.
What are the most advantageous car and motorcycle loans?
Car loans have also been affected by the price war that credit institutions have been facing over the past months. Now it is possible to finance a car or a motorcycle at a low interest and without the need to contract linked products. Here are some examples of the best opportunities to finance a car:
|Cofidis New Automobile Project Credit||€ 4,000 – € 15,000||1 to 6 years||6.86% APR||Apply for|
|Cofidis Motorcycle Project Credit||€ 4,000 – € 15,000||1 to 6 years||9.33% APR||Apply for|
|Orange Loan of ING Direct||€ 6,000 – € 40,000||1 to 7 years||7.18% APR||Apply for|
Requirements to finance a car or motorbike
The car loans that we have seen can be requested without being customers of those entities and without having to contract linked products. To lend us the money we need to finance a car, we must meet the following conditions:
Be of legal age and reside in Spain . Depending on the lender and the vehicle we want to buy (car or motorcycle), the minimum age can be 25 or even 35 years.
Have a sufficient source of income to return the credit . Generally, they will ask us to be self-employed or employees with good remuneration or to be pensioners with a sufficient pension.
Have a good credit history . They will not accept our request if they detect that we have had problems returning other loans or if we are registered in delinquent registers
Have a good socio-economic situation . The entities will take into account aspects such as the type of employment contract (indefinite, part-time …), our marital status or the number of people we have in charge.
Keys to finance a car without paying more
Before hiring a car loan we must take into account several keys that will allow us to get the money we need to finance our car or motorcycle without paying more:
Set a budget : we must be realistic and not ask for more money than we can return. Also, if we have savings, it is advisable to use a part to finance the car. In this way, the amount of the credit that we request will be lower and we will not have to pay so much in interest.
Be careful with the deadline : although it is tempting to choose a long term to reimburse comfortably the car credit, it will always be cheaper to pay somewhat higher fees for a shorter period of time.
Choose the car loan with fewer links : linked products such as life insurance, auto insurance or payment protection can increase the price of the loan. Before hiring a loan to finance a car, we must assess whether we pay for these linked insurances or if it is better to request a loan with slightly higher interest, but without linked products.
Have other expenses : the price of the car credit is not the only expense that we must take into account when we buy a new vehicle. Acquiring and maintaining a car or a motorcycle also entails other costs, such as registration tax, road tax, insurance fees and other expenses such as gasoline, tolls, etc.