Menu
When the time comes to purchase a new or recent relatively expensive vehicle, it is necessary to use an auto loan to finalize the transaction. In the case of a “minoune” to spend the summer, it is better to use your savings. Here’s what you need to know about an auto loan for young people, with or without down payment.
The car loan is obtained directly from a merchant or a group of dealers such as DDC Credit, unlike the personal loan which is obtained from a financial institution. The rates are lower in the case of a car loan, because it is an installment sales contract (CVT) where the vehicle serves as security for the amount loaned, until final repayment. In addition, the credit application process is simple and completely supported by DDC Credit which will put several lenders in competition in order to find you the most competitive interest rates.
It is possible to choose a payment interval according to your budget and your pay: every month, every week, or every two weeks for example.
If the idea of paying off a car loan quickly is good, paying it comfortably is a doubly winning proposition: you will have more flexibility and build your credit at the same time! However, there is a golden rule to respect. The value of the vehicle must be equal to or greater than the amount remaining to be repaid. So, if you've paid off your car loan and the vehicle is still worth a few thousand dollars, you'll have a good trade-in value for the next purchase. This is called “positive equity.”
A car loan comes with an interest rate . This is the rent for the money lent. This rate is set by financial institutions based on the “payment default” risk factor that you represent. The snapshot of this risk factor is your credit score, a number between 300 (poor) and 900 (excellent). You can get your rating for free by visiting the Equifax and TransUnion agency sites. The better your rating, the lower the rates charged. It is therefore essential to take good care of your credit score and report and the safest way to do this is to pay all your accounts on time all the time.
Before you apply for a loan, make sure you don't have any overdue accounts, even a small one. The most common example is that of an old cell phone account that you forgot to pay. Bad idea, it's a stain on your record. If you are not able to pay off a $20 bill, how do you convince a bank that you will repay a $20,000 loan. In short, clean up your things.
You are now better informed about the car loan! Financing and purchasing your next vehicle with DDC Crédit will allow you to drive with pride and peace of mind.
Anyone with a valid driver’s license can get a car loan.
Interest rates and loan conditions are directly linked to the credit rating and history of each person, young or old, as well as the vehicle chosen.