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Car credit, which documents are kept?

You have taken out a credit for your car and you end up with a lot of paperwork following this transaction. These documents are extremely important and we will have to keep them, even after having fully repaid the credit!

So what are the documents to keep during and after the credit? Why do we have to keep them? And for how long after the end of repayment? We explain everything in this little complete guide.

What are the documents inherent to a car loan?

When you buy a car loan, the financing organization, whether it’s an independent credit organization or your bank, provides you with a sometimes impressive amount of documents that all matter: loan agreement, amortization schedule, general conditions , special conditions, insurance …

To this, it is advisable to add the account statements of your bank on which appear the monthly payments of the credit, and / or the stubs of checks in case of payment by check …

All these documents must be perfectly well preserved throughout the duration of the credit, and even after the last repayment of it.

– The loan contract : this is a generic agreement for which the lender (organization or bank) agrees to lend a certain amount of money to the borrower at a given date and under given conditions. The signatures of both parties on the contract are essential.

– Amortization table : this is a double entry financial table, drawn up by the lender, showing the number of monthly payments corresponding to the duration of the credit, the dates of these monthly payments, the amortized capital, the interest (monthly and cumulative), insurance and capital remaining due month after month. This table allows the borrower to know where he is as his repayment progresses.

– The general conditions of the loan : this contractual document specifies the clauses of the transaction (management methods, guarantees, duration of the commitment, conditions of remittance of funds, failures of reimbursement, etc.).

– The particular conditions of the loan : this contractual document specifies the specific rules of the transaction (type of credit, rate, duration, identity of the subscriber and the beneficiary, scope of the guarantees, premiums, etc.).

– Loan insurance : they are optional but highly recommended because they cover the risks related to death or disability that may occur during the term of the loan.

– Statements of account : these are the ones on which appear the monthly payments of the credit which it is important to preserve (Even if, today, it is quite easy to obtain duplicates near his bank!).

– Check stubs : these are the ones concerning the payment of the monthly installments of the credit which must be preserved, as well as the statements on which appear these checks.

Why keep all these documents?

All these documents are very important and should be kept for the duration of the credit . In fact, in case of problems (change of situation, non-payment of monthly payments, repurchase of credit, claims, …), they are valuable proof of repayment if they are claimed.

Reminder letters should also be retained in the case of non-payment of a monthly payment.

All these documents can be requested at any time by your credit organization, your bank, your lawyer (in case of dispute), or by the court …

They are official proof of any claim, redemption of credits, or any other change of situation that occurred during the course of the loan.

How long do these documents need to be kept?

The law requires keeping them for the duration of the loan, but also at least 2 years after the repayment of the last monthly payment . Indeed, if problems occur towards the end of the credit, it is necessary to be able to prove the refunds made, even months after the deadline.

For example, if your credit car lasts 5 years, it is strongly advised to keep all the documents inherent to this loan for 7 years minimum.

To conclude, keeping all the documents relating to a car loan may seem to be a constraint, but this is important because, if you are worried, you will always have at hand all the evidence necessary for the progress of the proceedings, whatever they may be. , and it will save you a lot of trouble!

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Auto Credit: Know Before You Go

Like a home loan, a car loan represents a non-negligible financial burden for several years. So, before contracting this loan type, it is better to analyze the situation and the different opportunities (help, laws, financing) available to you.

The regulation of car loans

The regulation of car loans

The legal protection of the borrower, in the case of a car loan, is guaranteed by the Scrivener Law which governs the legislation of all consumer loans. The borrower thus has different rights including:

  • the obligation to inform all aspects of the contract
  • a reflection period of 15 days
  • a withdrawal period of 14 days after signature
  • the limitation of the loan amount to 75 000 USD

Possible financing and aid for a car loan

To help you finance your purchase, several organizations can intervene, especially for jobseekers and people with modest incomes.

Among these organizations, CAF offers a zero-interest loan (preventive loan) and a micro-loan (loan of honor). Although these two credits are not exclusively reserved for the purchase of a vehicle, they can still participate.

Pôle emploi, likewise, helps young drivers under the age of 26 who have just found a job that requires a means of transport. This is also the case for young drivers who have taken out a student loan to pay for their first vehicle.

Finally, different associations exist as:

  • the friend, to help unemployed RSA to acquire a vehicle
  • the cars of the heart
  • the association lend me a car

In any case, it is important to have a global idea of ​​the offers available on the market; benefits offered by dealers and financial organizations depending on your situation. Only then will you be able to make the best choice.

What do you need to know before you start?

  • Recognize a serious body, to whom to turn
  • Different types of financing
  • How much do I need to borrow? (what can I include in financing, car prices, miscellaneous expenses …)
  • The different helps to finance a car
  • Borrowing capacity, do the math
  • Minimum conditions for obtaining a car loan
  • Purchase of your car, cash payment or credit?
  • Is there a personal contribution to finance a car on credit?
  • Insurance for a car loan, principle and utility?
  • Auto loan when you have financial difficulties
  • The different personal situations possible when you apply for a car loan
  • Can auto credit vary according to the type of car?