The repurchase of credit is an operation which will consolidate the existing loans, but it can also include a new credit for the purchase of a vehicle, among others.
Study the eligibility for the conversion bonus
With the implementation of the “super” conversion bonus, the period may be ideal for launching a new car project. The device helps French people who earn modest incomes to acquire a less polluting vehicle than the one they currently own. According to the detailed scale, the share financed by the State can go up to 4,000 dollars .
But there is still the difference to pay that the buyer will have to finance. Without equity capital available, credit financing is one of the most common options for getting a new vehicle. Two solutions are then to be considered.
First, the French generally go to their bank to launch a financing plan. The establishment will then offer a consumer credit offer allocated to the purchase of the car. In this case, the borrowers will have to provide a quote beforehand to justify the existence of the project. Indeed, the affected nature of the loan, and the resulting preferential rate, obliged to use the sum granted for the purchase of the vehicle.
Consolidate your loans and finance a car
Now, taking out a new car loan in a credit repurchase is also an alternative. The borrower must then make a request for repurchase of credit with a banking intermediary while informing the need to finance a new vehicle. If the budgetary situation can authorize the opening of a new line of credit, the borrower will then benefit from a single loan since the repurchase of credit will group together all of its maturities as well as the new car loan. A grouping of credits with an existing car loan that includes a new car loan is also a possibility.
Each month, the borrower will only pay one monthly payment following the consolidation that he can reshape by reducing it up to 60% of its initial amount. This will have the effect of lowering the household’s debt ratio for better living and increased borrowing capacity. However, this mechanism applies by increasing the duration of repayment of the credit, which increases its cost ultimately.
Finally, many French people resort to Rental with option to purchase (LOA). A popular practice which consists in not being the owner of the driven vehicle but simply its tenant. Each month, rent, ultimately similar to a monthly loan payment, is then paid until the contract ends. During this interval, the purchase option can be exercised if the lessee chooses to become the final owner of the car. It should be noted that a monthly LOA may be subject to a credit buyback under certain conditions.