It has been proven that many consumers want to borrow money to finance a new car. For such a large purchase, it is usually the best decision to use an expiring credit (eg personal loan, senior credit or annuity loan) to complete the car loan or car loan.
What is a maturing loan?
A expiring credit is a money loan that is not used to hold money back, but rather to make a one-off expense. Perfect as a car loan, because this is a one-off purchase.
Expiring credits also offer many guarantees. The monthly costs remain the same during the (fixed) term and usually a fixed amount is paid monthly as interest, with the exception of the annuity loan.
Personal loan as a car loan
The personal loan can usually be offered as one of the best car loans. This is a typical expiring credit with fixed monthly charges and a fixed interest rate. The personal loan is one of the most popular forms of loan in the Netherlands. Many people want to borrow cheaply for a new car, the personal loan is often provided, also under the name of car finance.
Senior citizen credit as car financing
Senior credit can also be used as a car loan, but is limited to a specific target group. The senior citizen credit is a personal loan for consumers between the ages of 65 and 72 years old. However, the loan cannot be taken out by consumers older than 68 years. Senior credit must be repaid before reaching the age of 72.
Annuitary loan as car financing
There is only one difference between the personal loan and the annuity loan. The difference is found in the method of repayment. Although the monthly costs remain the same during the term of the loan form, the amounts intended for interest and repayment do not remain the same. An ever smaller interest payment is paid because the loan debt decreases after each payment.
What advantages does auto financing offer?
- Would you borrow for a car through a typical car loan (such as the personal loan), you would receive a lot of security. You pay fixed monthly charges during a fixed term and at a fixed interest rate;
- Lenders do not run the risk of losing money with a very low interest rate, as a result the interest on expiring loans is often slightly lower than with revolving loans;
- It is possible that car loans and car loans with free death cover are provided.
Car financing without BKR assessment
You will also be tested at the BKR for car financing. However, a car loan without BKR testing is possible, for this we recommend that you request multiple quotes so that you can compare yourself with which provider you are and are not being tested. The disadvantage of car financing / borrowing without BKR testing is that a slightly higher interest rate is often requested due to an additional risk premium.