Auto Loans - Things to consider before it

Even if you have a capital, the purchase of a vehicle oftenrequires taking out a car loan. In order not to have to take the time to learnfrom many organizations and compare different offers. For buying a car, twosolutions are available: subscribe to a consumer credit, or, more commonly,take out a car loan, assigned only to the purchase of a vehicle. The credit canbe self granted by a bank or through the auto dealer financing. The creditprovided by car dealers are generally formulas including supplemental servicesfor the purchase of the car, such as the guarantees of maintenance, repairs ... they can be interesting but often higher than the credit offersclassic car. Here are some definitions to help you familiarize yourself withthe language of the credit car.

APR (annual percentage rate): it takes into account theinterests of themselves and all costs of insurance, guarantees, commissions andother costs. It must be stated in the loan offer, allowing you to compareoffers.

Nominal: This is the base interest rate agreed between thebank and the maker of a car loan; it determines the amount of annual interest.It is only part of the blow of the credit.

Total cost of credit: they are all costs that the debtormust pay for the duration of the loan. The total cost of credit variesdepending on the capital borrowed, length of credit, interest rates and thecost of insurance.

Whatever the car credit that you purchase, the amount ofmonthly payments is set at the time of purchase and remains fixed throughoutthe term of the loan. You also have the option to make an early repayment. Thecredit period usually varies between one and five years but may be higher. Plusthe credit period is shorter; the cost of borrowing is reduced. To register acar loan you need to bring certain documents: an ID, proof of address,photocopy of last 3 pay slips and any other income, recent bank statements,proof of employment and Record of bank account. it is possible to withdraw froma credit within 7 days of the signing of the preliminary offer. To do this, youmust send a letter of withdrawal, accompanied, if you have it, the detachablecoupon attached to the form of prior offer of credit. You must send your letterby registered mail with return receipt to the financial institution from whomyou purchased your credit. If the supply of credit and the sales contract arelegally bound, the cancellation of credit resulting from the breach of contractvented.