1. Compare and apply for the cheapest car loan
The most important thing we want to tell you is that you should always go for the most beneficial loan. You probably already planned that, right? But where can you find the best and cheapest credit for your new car? Well… here
In the overview above you see real-time (live) the best loan rates of the moment. You can click directly to the provider for more information about the conditions and apply and close online. You can also click on ‘all loan rates’ and then even compare specific car loans for costs.
Would you like a financial expert to take a look with you? Then call in Credither for you. You can request a free quote here. They do this on the basis of years of experience and are specialists in everything that has to do with loans and loans. And you can always compare their quotation with your own online comparison to see which one is the most advantageous.
2. Borrow money for car wise / smart?
This is a very justified question that we must answer more often. Let’s assume that you can decide for yourself whether you think it is worth taking out a loan. Maybe you just need that new car to get to work? Or not at all but would you like to buy the car of your dreams and not have to save for years to come?
Whatever the reason is that you think about borrowing, you know that this also costs money. After all, you pay interest. Do you think this is worth it and can you also pay the monthly amounts? Then nothing has to stop you. As long as it is a decision that you have thought about. And always ensure that you go for the best loan in terms of type and costs, as we described above how you can do that.
3. Loan without BKR review / registration
Every loan in the Netherlands is registered with the BKR. This then makes it more difficult to take out another loan such as a mortgage. Each provider will first look at an application to see if you already have another loan. The purpose of this check is that you do not get too involved with multiple loans and therefore cannot pay your monthly repayments. So it’s basically to protect you so you don’t go bankrupt.
Now you can still borrow money without doing so with a so-called BKR check. This is not an amount with which you can buy a large new car, but perhaps you can pay for the last part: up to $ 1,500. We call this a mini loan. You don’t even have to show a payslip or other documents, just your identification. So simple that you can request it in 5 minutes and get it to your account in 24 hours.
Note that the duration of this type of loan is short. So you have to be able to pay this back quickly. For example, if you know that you will receive your holiday pay or a bonus / end-of-year bonus in a while.
For example, if you borrow the maximum 1500, then you have to pay off half after a month and the rest after 2 months. A relative advantage of this short term is that the final interest costs “only” amount to $ 25.11
With a longer term, this would have been much more, since the interest rate is high at 13.99%. Take out such a loan with an experienced and recognized party such as Ferratum. They do this internationally in many countries on all continents.
4. Private car financing: types of loans
Make sure you think carefully about the loan form / credit form. There are several options for private individuals, all of which in the Netherlands must comply with the regulations of the Netherlands Authority for the Financial Markets (AFM). They protect you as a consumer against inaccuracies and unclear conditions.
A personal loan is the most used option for a car, but a revolving credit can also work well. Depends a bit on your preferences and wishes. You can click on the links for more information about the specific products and to read the pros and cons. We are not going to recommend one of the two.
5. Financing via car dealer, whether or not to do it?
You can always consider financing your car directly through the dealer. This is ultimately just a loan and is often offered when buying a car. Incidentally, they are no longer allowed to offer loans of 0%. The reason that the AFM prohibited this is because it was misleading because, despite a lack of interest, there were financial conditions and obligations involved.
Now the sellers offer the same loans as we have already described above. So you can easily include that in your comparison. But keep comparing with the loan interest overview above! Research shows that the loan through a dealer is often more expensive. But that does not always have to be the case.
6. Alternative: private lease
Instead of borrowing you can do something else. Or actually it is a very different option than that you buy a car at all. You can also lease that cart! Where in the past you actually did that only through your employer or own company, you now see that the so-called private lease market is growing strongly. There are the following advantages and disadvantages:
- Fixed costs; you pay a fixed amount per month and then you only have to pay for your fuel. All other costs are paid by the leasing company. Such as maintenance, depreciation, road tax, insurance etc.
- No savings or loans needed: Because you don’t buy a car, you don’t have to deposit a purchase amount either. That makes a difference.
- Cheaper with a new car: A lease contract always comes with a brand new car. Buying a new car is much more expensive because you have high depreciation in the beginning. So if you want a new car per se, leasing is definitely a good option.
- Canceling is expensive: terminating a lease contract prematurely is expensive because you have to pay hefty fines.
- Driving a car can be cheaper: an occasion is often cheaper than a new lease car. Even if you have to purchase it with your own money. As long as you “drive” it up completely.
- Expensive with little use: does your car stand still a lot? Then leasing is not interesting. Leasing companies only count from 10,000 or 15,000 km per year. Everything that you do not drive will cost you money.
- Still BKR check and registration: a private lease is also registered at the BKR in Tiel. It remains a payment obligation / credit and can therefore make it more difficult to get a mortgage just like a loan. And yes, before concluding a lease contract, the company will first check whether you already have a registration!
The cheapest option to drive a car really is to save for that car. Patience therefore earns you money, as if that is not always an option.