How to finance the purchase of a car

Few people are able to buy a car and pay for it in cash, so knowing how to finance this expense becomes as much or more important than choosing the vehicle. There are different options to do it, so it will be very important to study them to choose the one that best suits your needs. In .com we help you in this task explaining the possibilities available to finance the purchase of a car .

Personal loans

Getting a good personal loan is becoming more complicated, as there has been an increase in the lack of financing by banks and the rate of delinquency. The reaction of the financial entities is being the reduction of offers, the increase of interests and the increase of the rigidity in the conditions. Many entities offer exclusive products for the financing of a vehicle, although, to take advantage of their conditions to the maximum, it is necessary to hire other related products such as car insurance .

Financing of dealers

Keep in mind that car sales have dropped significantly in recent years due to the crisis, which causes many brands and dealers are desperate to sell vehicles. This translates into an increase in funding possibilities. Many vendors and manufacturers offer loans through banks, but with fairly advantageous conditions in order to make the sale.

Renting and leasing

These banking products offer the possibility of partially financing the purchase of a new vehicle. With them you can use a car in exchange for a monthly fee, having a purchase option at the end of the contract period. In addition, on some occasions, repairs are carried out by the entity that offers the product.

VAT

Finally, we must remember that cars have also been affected by the VAT increase, from 18% to 21%. This translates into an average increase of about € 650 in the cost of the vehicle.