What is a used car financing?
The auto loan opportunity is, just like car loan, a loan installment affected allowing you to finance a second-hand car. This type of used car financing is an assigned loan granted by a financial institution. Thus, you repay each month, during a predefined period, a fixed monthly payment including interest calculated according to several factors. All the conditions of the self financing chosen are listed in the car loan agreement and vary from bank to bank.
Which vehicle can I buy with a financing option such as auto loan opportunity?
With used car financing, you can buy a second-hand vehicle: be it a motorcycle, a van, a truck, a car. And whatever the engine or fuel of the vehicle. For a large number of banks, a used car (which has already been driven on public roads) is a vehicle that is more than 2 years old. Therefore, if you are interested in a car under 2 years, you will in most cases benefit from a new car loan, which is generally cheaper because the lender has a pledge on the vehicle.
How much can I borrow to finance my car?
As you can see in the table below, the amount you can borrow for your used car loan varies greatly depending on the bank and ranges from € 500 to € 100,000. On the other hand, the price range that you will find for a used car of more than 2 years generally varies between 1.250 € and 100.000 €. On the other hand, while some banks set a minimum amount of € 500, others raise the bar to € 5,000. The same goes for the maximum amount, which can be as much as € 10,000 or € 100,000 or more, case by case.
How long can I borrow?
Like the loan amount, the duration of financing an used car varies from bank to bank. Thus, while most financial organizations make a minimum of 12 monthly payments, some reduce this limit to 4 months and others increase it to 36. The maximum duration compared on our site is 120 months. However, it is important to distinguish between a new car loan and a used car loan. Here are the conditions, subject to variations according to the banks:
|New car loan||Used car loan|
|Age||0 to 2 years||> 2 or 3 years *|
|Interest rate||between 1.29% and 10%||between 3.45% and 10%|
|Amount of loan possible||between € 1,250 and € 125,000||between 500 € and 100.000 €|
|Possible borrowing time||between 4 and 84 months||between 12 and 120 months|
|Other||Possibility of borrowing up to 120% of the amount||Possibility of borrowing up to 120% of the amount
TAEG sometimes increased in case of purchase from an individual
* If the vehicle is less than 2 or 3 years old, it is possible to obtain the same loan as for a new car.
Indeed, varying the duration of the loan can easily allow you to find the auto loan opportunity at the best rate. It is therefore essential to compare different offers of used car financing to find the one that best matches your profile. If, on the other hand, you want to finance a new vehicle, you can find the cheapest car loan.
Can I borrow more than 100%?
The act of purchase is easy. On the other hand, it is important to take into account all the ancillary costs related to a used car which will weigh later on your monthly budget. It is therefore essential to separate two types of expenses:
Can I apply for all purpose loans to finance the used car I want to buy?
Indeed, it is quite possible to apply for a personal loan for any purpose to acquire a used car. This type of credit is much more flexible than an auto loan assigned since it does not require any supporting documents, proof of purchase, order form or other. You can enjoy the amount borrowed as you see fit. On the other hand, because of this flexibility, all-purpose personal loans have two disadvantages:
- Its interest rate is higher than that of a car loan (credit affected). This difference can be substantial and vary by at least 4%.
- As a borrower, you are less protected. Indeed, in case of cancellation of the sale or non-delivery of the vehicle, you will still have to repay your loan.
How to find the best car financing opportunity?
In order to find the most suitable auto loan matching your spending profile, it is important that you compare all online offers on the Belgian market. Thanks to this, you:
- Save time because you no longer have to go to your banker or other financial institution for a credit simulation.
- Have an overview on the different loan offers in Belgium and have direct access to information related to each bank.
- Directly identify the car loan opportunity that suits you best and know everything about the repayment process.
- See interest rate fluctuations without having to go back and forth at your financial institution.
How to apply for auto loan opportunity?
Whether you are looking for a specific car loan or simply information, you can simulate your car financing opportunity on the comparison platform BetComparator be to see which bank is the most interesting for you and thus find the used car financing at the best rate. To do this, the steps are simple:
- Go to the car loans page ;
- Click on the orange button ” Simulate & compare all loans “;
- Enter the desired amount and term of repayment;
- Compare all offers ;
- When you find the one that suits you, click on the orange button ” Continue “;
- You will then be redirected to the site of the selected bank and can make your request.
A simple online loan simulation does not commit you in any way and in no way binds you to a bank. The latter will come back to you after submitting your application online. You can then study the contract received and choose to sign it or not. Only after signing the contract are you bound to the conditions mentioned therein.
Via which recognized organizations can I find a good used car?
Finding the pearl of opportunity is not an easy task and distribution networks are becoming more numerous. Whether you decide to buy your used car directly from an individual or you are promoting a professional, the list is long to find your car financing.
Car financing: recurring issues
- Insurance is usually paid every 6 months or once a year.
- The traffic tax is annual and is calculated according to the regions as well as the power of the car.
- The maintenance and repairs are also to be taken into account, especially when the car is a used car and, therefore, already a certain age.
- It is not possible to get a loan within 24 hours. If you have found the pearl and do not want to miss this opportunity, find a quick credit is possible by preparing your file before even go to a particular bank.
In view of the budget that this can represent in addition each year, it can be interesting to ask for a loan higher than 100%. According to financial institutions, the percentage of your car financing can go up to 120% of the price of the used car. What you can afford to cover all these costs upstream without having to tap into your personal resources. In order to have more information on the subject, do not hesitate to read our dedicated guide.