Auto Financing is a loan that, as well as the name suggests, is required for both buying a car (new or used), also for motorbikes, campers, etc. Further editorial at http://wrtc2006.com
For convenience and to avoid repetition when we refer below to the financing to buy one of these vehicles we will say “car loan”.
Loans are defined as “finalized” as they are provided by the Credit Institution (bank, financial or brand company) exclusively for the purpose of purchasing a car (such as a car or motorcycle).
They are fixed-rate loans and usually (but not exclusively) they are requested from car dealers and dealers that have agreements with a branded company that have agreements in this sense with credit or financial institutions or through financial companies ( the so-called “captives” created specifically by the car manufacturers themselves: Renault created FinRenault, Fiat created Fiat Sava and so on.
These financings offer very favorable and unique and exclusive conditions because, logically, they are created to sell the cars of their own brand.
A pre-amortization period can be granted, an initial period of time in which installments are not paid, but generally the calculation of the interests starts from the date of the stipulation of the contract: it is a specific offer of the financial companies that offer reductions on loans aimed at buying a car.
Attention: if you intend to buy a used car from a private individual the car loan in question will be the personal loan.
To obtain the car loans the times are shorter than usual and the financing is paid within a week through a credit directly on the client’s current account; even the protesters and the bad payers can access it even if of course there will be need to provide the guarantees and insurance policies required by the case.
Requirements to be able to apply for Auto Loans are the age between 18 and 65 and have a demonstrable income through presentation of the pay slip (valid for employees) or the tax return (self-employed workers).
It is interesting to note that, depending on whether it is a new or used car purchase, different conditions are offered as the statistics indicate greater cases of insolvency and default in relation to the purchase of used vehicles.
Any guarantees required (although they should not be necessary) could be the exchange of installments, or a single bill or (more commonly) the signature of a co-obligor or a third guarantor, who acts as guarantor.