When a person decides to buy a car he is making a momentous decision for his finances, not only because of the size of the investment but because in many cases the available resources are not enough to buy the cash car.
Most of the people of the world seek financial problems for the purchase of their car. In the market today there are competitive car loan rates. You could study them carefully before getting into debt. We offer you a guide that includes everything you should do to find the best financing option for your car.
When you choose your car, visit several dealerships and several websites. In the market there are many brands, there are imported or national cars, sports or classic, family or small, luxury or economic. It all depends on what you want, your needs and obvious, how much money you have available. It all depends you want to buy a new or used car and how old. The percentage of financing changes considerably depending on the model of the car.
Mostly banks offer credits for new cars for 90% of its value with terms of up to 60 months, while for cars of 15 years, only loans 60% of its value for up to 36 months. Also keep in mind that when the business closes you have to assume expenses associated with the purchase such as compulsory insurance (SOAT), insurance against accidents and theft, the cost of registration and plates and taxes.
Once you have selected your car, request through your dealer or directly, financial institutions, to study your debt capacity, taking into account variables such as your income, job stability, credit history and real estate.
These will determine if you are eligible for the loan and will also define the loan amount, the interest rate and the term. The rates offered at this time for vehicle range between 1.1% and 1.85% month expired, standing on average at 1.5% month due, that is 19.8% annual cash. The terms, meanwhile, range from 12 to 72 months.
To make your credit application, you must submit the required documents and also, prove a minimum income. For example, if you are an employee you must prove that you earn at least 3.5 minimum monthly salaries to be able to apply for a vehicle loan.
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Bear in mind that there are financial entities that offer credit lines specialized in financing the purchase of cars, among which are many companies. When you know that your ability to pay allows you to borrow, you must carefully study the financing alternatives offered by the market. There are many, some more expensive than others (Table). Define which the best is for you, taking into account your income, your debt capacity and, above all, your available resources.
Credit is the traditional option to finance the purchase of cars. If you agree on a variable fee with a fixed rate, you will find a cheaper option. It would start with a fee of $ 1.1 million and end up paying $ 579,000. His car would come out for $ 45.39 million, one million less than with the credit with a fixed fee. In most cases, these loans have life insurance under their validity, as well as a collective policy against risks.
If you choose to pay 50% of your car today and the other 50% in a year, your car will go for $ 43.4 million, that is, $ 5.4 more expensive than if you pay everything in cash, but $ 3 million cheaper than the credit with fixed fees. The option ’50, 25 and 25 ‘is even cheaper, your car would come out for $ 41.7 million.