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 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?