Auto Loan: Financing Purchase New Cars 2018
Looking for more information on car loan in Italy updated in November 2018 ? You’ve come to the right place!
Know that your wishes can turn into reality, and that to do so it is not necessary to use a magic wand, but only a little ‘commitment to find the best loan to buy a new car that can do for you.
By the way, how can you find it? And what are the characteristics of a classic loan for the purchase of a new car?
Loan for new cars: where to request it
First of all, if you want to buy a new car instead of leasing or a long-term rental company, the loan for the purchase of a car can be paid directly by a bank or financial institution or through credit for consumption .
In the first case you will have to go personally to the bank and – as we will see in a few paragraphs – make a specific request. In the second case instead you will have to go directly to the dealership, and it will be the same dealership to take care of everything (sometimes, through its own group financial).
The difference is quite intuitive: if you choose to turn to the bank, the institution will give you a sum that you will have to “bring” to the dealership to buy the car, while in the second case you will not “see” any amount of money transit for your accounts, considering and considering that the disbursement will be tied in favor of the financial.
It is also difficult to say which of the two forms of financing is the most “convenient”. In general, loans with consumer credit can boast promotions and “favor” conditions, but this is not always the case: we therefore invite you to consult the conditions of both forms with particular attention, comparing the estimates that you will receive. delivered.
In this sense, finally, keep in mind that often banks do not have a product specifically designed for the purchase of a new car. Often you can find a generic car loan, other times a loan for the largest category of engines, even more often a “generic” personal loan, which you can of course also use for the desire to buy a new car.
How much can I get with a new car loan
Regarding the amount you can get by applying for a car loan , this varies naturally depending on the vehicle you want to buy and your repayment capacity. With an analysis of the Italian credit market, we have noted that the amounts are potentially very generous, and can even exceed 50 thousand euros.
As anticipated, however, a lot will depend above all not only on the estimate that you will present (and that can be 100% funded) as much as the ability you have to repay the loan that will be granted: banks usually do not like you to get indebted for more than 30% of your monthly net income.
How long is the loan for car purchase?
The duration of the loan for car purchase usually varies between a minimum of 24 months (2 years) and a maximum of 120 months (10 years). It is understood that at any time you can still proceed to the early extinction of the residual debt, if you have the financial availability and have the convenience.
To extinguish the financing for new car purchase you will not have to do anything else but warn of your intention the bank / financial, with a few days in advance: you will give the creditor institution time to formulate specific accounts for the early extinction, which will allow you to make a bank transfer or payment in other forms agreed with the bank. The extinction can be free, or subjected to a small penalty of early termination of the relationship: try to take a careful look at the financing contract, before proceeding!
How much is the loan for new car purchase
Now that we have seen how the loan for the purchase of a new car works , it is legitimate for you to ask yourself: how much does it cost? In principle, the greater cost that you will have to face is certainly linked to the interest rate that will be applied to the capital subject to financing. With a few exceptions, the rate applied is always fixed and indefinite for the entire duration of the relationship, established in the measure agreed with the lender.
However, other elements also come into play to determine the total cost of the loan . Take into account, for example, the need to face expenses and commissions of investigation, or even the possibility of combining a life and damage insurance policy, which will protect you from the risks of death, total permanent disability, disability, serious illness, of hospitalization or loss of employment. Attention, however: the policy is optional, and nobody can force you to sign it! It therefore evaluates its effective expediency freely and with full awareness.
How to apply for a loan for a new car purchase
As we have seen in the previous lines, you can apply for a loan for new car purchases at the bank or directly at the dealership. Beyond this different “interlocutor”, nothing changes as regards the modalities of the request and with regard to the presentation of specific documents to be attached to the same.
In fact, you will need to match the request form:
- personal documentation (identity card, health card);
- documentation related to income capacity (paycheck, pension slip, income tax return and other documentation based on the nature of your income);
- expense documentation (a quote for the purchase of a new car).
Once all the documentation is delivered, they will spend a few days before obtaining the result. In case it is positive … you can stop looking dreamily at the dealer window and start imagining yourself driving your new car!