The moment you want to take out a car loan you want to do this in the cheapest possible way. By comparing car loans you can indeed find a cheap car loan. We help you on your way by putting a number of excellent lenders among themselves with the options they give you when taking out a car loan, also known as car financing. It will also depend on your personal situation how much a lender you ultimately want to give for your car loan. By performing a car loan simulation at the lenders you can quickly see what costs will be associated with your car loan.
Compare car loans
It is very important that you do not immediately take out the first car loan that you calculated, because comparing car loans is far too important for that. There are differences per lender not only in the interest rate of the loan, but also in the amount of money that a lender you want to borrow. The fact is that one lender will handle things more smoothly than the other lender, so that it may be that you are rejected for one of your car loans, while the other just approves you for the loan.
You can compare car loans with a simulation. Put the results of the loans that you have simulated next to each other and therefore compare the costs that you have spent on the car loan. These costs in proportion to the time you spend paying off the car loan will determine whether it is a good car loan or not. Therefore, always view multiple car loans and also check what the duration of a car loan does with the costs that you have to pay for the car loan each month. As a rule, if you opt for a longer duration for your car loan, you will also pay less per month, but at the end of the process you will have paid more in total. So this is definitely something to take into account.
The cheapest car loan
For everyone it will differ what he or she under a cheap car loanbut it is of course clear that when it is cheap you should also do this. It is simply not necessary to take an expensive car loan if cheaper lenders are also active on the market. What exactly your cheapest car loan will cost depends on several things. First of all, the amount you want to borrow will of course play a very important role, but it will also depend on what you can miss every month. If you can miss a lot of money every month for your car loan, then you can opt for a shorter loan, which means that the loan is repaid faster. You then have slightly higher monthly payments,
You can of course also pay for all your cheap car loans yourself by paying part of the costs that you have incurred for the purchase of your car from your own pocket. By already reducing the costs at the start of your loan, this will naturally also result in the costs of the car loan going down. In the end you will of course benefit a lot and if this is possible and you can already lower the loan in advance by already paying part of the car costs, it is certainly advisable to do it in this way.
Apply for a loan
After you have chosen a lender, it is time to apply for the car loan. The moment you have made the choice for a certain lender, that does not mean that the lender will actually want to lend you the money. For this they will go through your details. Among other things, a lender will check whether you are blacklisted, for example. If this is the case, this will reduce your chances of obtaining the loan.
You naturally fill in all the information truthfully when you want to request a loan. The blacklist is just one of the things that a lender will look at, because it is of course also very important that the amount of money that you want to borrow for your car loan is also proportional to the salary that you (and possibly your partner) ) receive monthly. If you are applying for a loan that is too high and your salary is too low, you will be informed by the lender and they will immediately let you know what is possible in your situation to borrow. If this does indeed occur and you find that the amount that a lender can lend you in such a situation is too low, then it is better to look for a lender who will approve the amount of money you want.
A car loan simulation helps
It is of course clear that you cannot perform a simulation for nothing. It shows you immediately or the car loanwhat you have in mind is that it might be better to opt for a slightly lower loan. On the other hand, a car loan simulation can of course also show that you could actually borrow more for one car and that you might therefore also want to buy another car right away. A car loan simulation tells you a lot about the options you have with the loan for your car. It is of course also very convenient for lenders themselves to offer a car loan simulation on their website, since this can prevent you from applying for a loan that does not correspond at all to what you could actually borrow. If you do a car loan simulation, then you can conclude this fairly quickly and you can adjust the car loan if necessary.
Interest rate of your car loan
As you can see in our overview, we have sorted the lenders according to the interest rate, starting with the lender with the lowest interest rate, after which the interest rate increases. Of course we did this because a low interest rate offers a guarantee for a cheap car loan. What you have to pay attention to is that this is the lowest possible interest rate from a lender, but it may well be the case that when you take out a small loan for your car you may be confronted with a higher interest rate. This is of course something that a car loan simulation can immediately show, so you should always do this first.
The interest rate of your car loan may also differ if you want to purchase a second-hand car with your loan. The fact is that for most lenders the car loan for a new car is offered cheaper than the car loan that serves for the purchase of a second-hand car. Typically, a car will be counted as second-hand if it has passed the age of 3 years (this can also be 2 years for some lenders). Until that time it can therefore continue as a new car and that also means that you can then actually take out the cheapest car loan.