How is the 0% financing for cars?

Coming September it will be a year since the AFM curtailed the offering of 0% interest rates for car loans. The AFM was of the opinion that a 0% interest financing was “misleading”. Borrowing always costs money. This offer implied something else despite the use of the mandatory slogan “Attention! Borrowing money, costs money”.

These loans meant in practice hidden (high) costs for the consumer. For car dealers, too, the sun goes up after all. AFM proposal to car dealers: offering low interest rates is permitted but no interest rates of 0% or close to 0%. Which alternatives do car dealers offer their customers as financing one year later?

Personal loan most used financing form car

 

The most common form of financing for a car is a personal loan and then most consumers opt for a five-year term. They want a term that matches the economic life of a car. You want to avoid having to incur costs for a car that has been written off or has already been sold.

The choice for a personal loan is easy to explain because of the certainty you receive. You have paid off the loan in full on the due date. Furthermore, the interest rate is historically low and you secure this with a personal loan. The demand for revolving credit as financing for a car has therefore clearly decreased because the interest on the credit is variable. And unlike old loans, nowadays even with a personal loan, additional repayments are permitted free of charge. For loans with old conditions, a fine always had to be paid in the event of extra repayments. The bank went wrong in calculated interest income and charged a penalty interest.

Car dealers still offer (for them) lucrative forms of financing to their (future) customers.

money cash

In addition to the possibility of leasing and buying on installment, they offer the 50/50 deal . That means paying half when purchasing , you can pay the other half in installments at an agreed interest rate.

The advantage for a car dealer is that they already have the consumer in their showroom and can immediately make a financing offer. It is tempting to arrange everything through the dealer. But is that also in favor of the content of your wallet?

Car lease

If you want to drive a new car but you don’t want to buy it, you can lease a car. You do not become the owner of the car; you rent it. You pay a monthly amount and furthermore you only pay the gas costs. The moment you enter into a lease contract, this agreement is registered with the BKR. If you are going to take out a new mortgage, this amount has consequences for your maximum mortgage amount.

Buy new car on installment

Buying an installment car, “buy now, pay later”, is actually taking out a loan. But with the big difference that you are the owner of the car with a loan, in the case of an installment purchase you will only be the owner of the car after you have paid the last installment. Car dealers charge high interest rates for this option and you are often required to take out supplementary insurance.

50/50 deal

Since the ban on 0% loans, car dealers are still offering the form of financing, the 50/50 construction. You pay half of the car at the time of purchase. For the remaining 50 percent of the amount, you have 12-48 months to pay the outstanding amount in fixed monthly amounts at an agreed interest rate. Car dealerships seem to be pushing the limits again; promotions are currently being offered to pay off the second part of the costs at 0% interest. A loophole?

A year later, it seems that car dealers are complying with the September 2016 ban imposed by the AFM. But what will the AFM do with the latest 0% promotions? Are the dealers ticked or are the promotions allowed?

Financially finance your car

Financially finance your car

If we compare the facts, the most advantageous loan form for a car loan is a personal loan. Are you curious about the low monthly charges that we can offer you? Easily calculate it yourself and request a quote. We work quickly and discreetly and we treat your personal information strictly confidentially. The application process is digital so no unnecessary phone calls or advice agreements.

Guide: In these countries, you need to refuel your car on a self-driving holiday

There are huge differences in how much you have to pay for fuel as you drive through Europe. It shows a new study by Dave Brandstetter, which here gives you a guide to where it is most economical for you to refuel gasoline as well as diesel.

Every summer, several Danes go on a self-drive holiday, where experiences under foreign skies and the opportunity for more hours of sunshine lure. One of the many benefits of driving self-vacation is, among other things, the great independence and freedom where you can hold and stretch your legs when the desire is for it. Furthermore, the drive allows you to enjoy the view along the way, experience the local culture and grab a meal at a local restaurant.

In these countries, you need to refuel your car on a self-driving holiday

In these countries, you need to refuel your car on a self-driving holiday

There can also be financial benefits associated with drive-yourself holidays, as it may be cheaper, for example, to fill up the car with the family rather than to transport in airplanes and then rent a car at the holiday destination. Taking the car also takes into account the great environmental impact that flight poses.

If you are planning your self-drive holiday, we recommend that you plan as best you can in which countries to refuel your car. Namely, there can be large differences in fuel prices.

On the world map below, you can study which countries offer the lowest fuel prices.

Map of gasoline and diesel prices in the world. Updated every day at 02:00

See the map in large format here

The map clearly shows the price differences between countries, but it also shows the difference between gasoline and diesel. For example, the price difference between 95 octane gasoline and diesel in Denmark is USD 1.52 and 1.64 in Greece, then the price difference is only USD 0.22 in Belgium. Furthermore, in a number of countries, diesel is more expensive than gasoline (Switzerland, Romania and Serbia), which is economically important to keep in mind when refueling.

How much does a run-yourself vacation in fuel cost?

holiday loan

You can see examples of what it costs to drive to selected holiday destinations in the table below.

(Please note that geographical distances are obtained via Google Maps and that they may vary depending on route selection. Also, the need for car type fuel, driving conditions, etc., so the amount of 50 liters of fuel is selected solely to make fuel prices comparable ).

If you are going to Norway, you should always refuel your car before crossing the border. Norway has some of the highest prices in the world for diesel such as gasoline. The price difference between Denmark and Norway is thus USD 1.61 per share. liter of diesel, while it is USD 0.85 per liter. liter gasoline (dated 13.6.2018).

If you are going to Italy you should also think about where you are thinking, as Austria is significantly cheaper than its neighboring country. In Italy, diesel costs USD 11.32 and gasoline USD 12.21 per unit. The prices in Austria are USD 9.38 on diesel and USD 9.76 on gasoline respectively. The price difference is thus USD 1.94 on diesel and USD 2.45 on gasoline (dated 13.6.2018).

All countries have the same purchase price

All countries have the same purchase price

Although all countries have access to the same fuel prices, diesel and gasoline prices vary considerably around the world. This is due to various taxes and subsidies, where rich countries generally have higher prices, while poor countries and countries that themselves produce and export oil have significantly lower prices.

Interested in credit? Take care of your story

Getting a loan at the moment is a real challenge for every person who submits an application at the bank to obtain a certain amount of cash. The problem in this respect is not only people who have considerable debts, but also people who have never taken anything on credit or borrowed. Experts from the credit services industry emphasize how extremely important is building your own credit history. It depends on her in the overwhelming number of cases whether our application will be approved by bank analysts or rejected by them.

It is also emphasized that our ability does not depend only on the wealth of our portfolio (i.e. the revenues we receive each month), but also the history of our commitments plays a significant role here, i.e. the way in which we have dealt with the repayment of our debt in the past.

 

A good customer is at a premium. Credit history decides.

A good customer is at a premium. Credit history decides.

Paradoxically, for a bank a much better customer is a person who had loans in the past (even if they had minimal delays in payments) than a user who had no obligations and is not listed in any database. For the banking system and working analysts, it is completely unknown and therefore there is a considerable risk as to its financial condition and solvency.

Therefore, if in the future we are thinking of taking a larger loan, e.g. a mortgage, it is a good idea to build your credit history now. We can e.g.
– decide to use a credit card (of course, no one urges anyone to spend money excessively, but sensible use of a credit card on the one hand can make our lives easier and on the other will be followed by a positive entry in the Credit Information Bureau, i.e. in the popular BIK)
– in addition, attractive installment purchases also involve taking out a loan (we can also improve your creditworthiness through timely repayment)

They don’t have to be large amounts. It is important above all that we have made a given commitment and have been repaid by us conscientiously.

 

What does the bank check in addition to installments?

What does the bank check in addition to installments?

Repayment of our obligations in the past is a basic thing that the bank verifies. In addition, however, we can be checked in one of several Economic Information Bureaus (e.g. KRD) for the correct payment for utilities and alimony (if awarded). Any future borrower should also take this into account.

 

Are you a guarantor? Check how the person you have trusted copes with paying off the debt.

debt credit

A popular proverb says that if you have a soft heart then you must have a hard other important part of our body and this is also the case with credit. The failure of the main borrower may result in us as the guarantor falling under the obligation to pay a specific debt. The additional commitment that we will “gain” in this way will certainly not have a positive impact on our financial condition, and even less creditworthiness.

 

Credit card – convenience, but also danger

Credit card - convenience, but also danger

Access to cash is so easy at the moment that sometimes we can even fall into debt unconsciously. In the case of credit cards, this has the additional minus that we will be charged a relatively large interest and on the other we can easily get to the register of debtors. Therefore, even if there is a lack of debt repayment on time, we should even pay a small part of it in order not to be on the bank’s “blacklist” with a closed path to the loan.

A car repair loan? – Car Loan

Ca

For many people, a car is an integral part of their daily routine – it may be necessary for business purposes as well as being the only means of transportation to get somewhere. In any case, there are people who are so used to the use of the machine in their daily lives that, when they are suddenly absent, they feel like they are without their hands.

As with any commodity, the use of machinery on a regular basis and as the vehicle grows older each year, various problems arise. These can be relatively small technical stumps, such as replacing a wheel bearing, but can also be bigger problems that require a lot of money to repair – even hundreds of dollars.

 

Loans are used for a variety of purposes, including car repair

Loans are used for a variety of purposes, including car repair

The technical malfunctions of the machine, like a human being, do not usually plan their health problems in time – they usually occur unexpectedly. As a result, the owner of the car may need financial help to get the car in order, as his or her own resources are not enough at the moment or the money is planned for someone else.

In such cases, it is possible to use the credit. Nowadays there are several types of loans, different lenders with different offers and conditions. This means that the owner of the machine must carry out a prior study of the lenders and lenders in order to repair their vehicles on profitable terms, while paying as little as possible for the services provided by the creditor.

In order to find the best loan offer, the car owner has to calculate how much money to borrow. There is certainly no need to borrow more money than is really necessary. In other words, the potential borrower must find out what the cost of repairing the car is at the car service station. Once the approximate amount is known, it is up to the car owner to look into the offers of the lenders.

If the amount required is relatively small – up to $ 200, then it is possible to find among the lenders who offer the first loan free or interest-free. This kind of credit means that the borrower, when borrowing for the first time with the selected creditor, does not pay the loan interest. In other words, if the borrower borrows 150 USD, then at the end of the repayment term (for fast loans it is usually 30 days), the same 150 USD and no more than a cent. A free or interest-free car repair loan is a great option that you should definitely use. This type of cash loans can be obtained at Bondo, LinkSMS, Easypoint Credit, Gold Plus Credit and other lenders.

 

Not all car problems can be solved so easily and cheaply

Not all car problems can be solved so easily and cheaply

In cases where larger sums of money are needed for repairs, you can find lenders that offer borrowing as much as several thousand dollars. In such cases, however, it will be expected that the credit will not be available if the lender, when verifying the customer’s solvency, has doubts about whether the borrower can afford such cash loans. In addition, there are now tightening restrictions on access to credit.

In the case of larger cash loans, the lender will definitely check the customer’s income, volume and regularity; a certificate from the State Revenue Service (SRS) as well as a place of employment may be requested. The credit history of the customer will also be definitely addressed – if the borrower is on the debtors’ or credit register or is regularly late in payments, then the lender has the right to refuse the loan application.

Similarly, a large number of lenders no longer grant credit to persons who are only 18 or 19 years old. However, if the customer’s income situation is sufficient and stable, and there are no other factors that affect the availability of credit, then there should be no problem in getting the required loan for auto repair. Bigger loans with longer repayment terms can be obtained from Surity Bank or Lodo.

 

Another way to pay for car repairs

Another way to pay for car repairs

If your finances are currently inadequate, is to use a credit card. In addition, credit card companies like Visa also have special deals that are specific to car repair. In this case, you first need to find out at which car repair service you can take advantage of the credit card.

Also, the principle of using a credit card is essentially the same as for loans taken over the internet. The Customer uses the limit offered by the credit card and inquires about the benefits; the loan is then repaid within a specified period.

Why does cash loan pay off?

The profitability of a cash loan is high under certain conditions. Currently, the economy has very low interest rates and stable inflation. Thanks to this, the conditions for taking short-term loans are ideal. In the article, you’ll see why cash loans start paying off even on low-income household budgets.

 

Access to a cash loan is the first cost-effectiveness factor

Access to a cash loan is the first cost-effectiveness factor

Access to additional money has improved primarily through dedicated loan services, often combined with free credit comparison websites. The borrower no longer has to go to stationary branches or order an expensive home consultant. All you have to do is submit a loan application online. Another factor of profitability is the strong competition on the short-term loan market between retail banks, loan companies and even social loan portals, where you can get a commitment on extremely flexible terms. The next cost-effectiveness factor is legal changes regarding the reduction of non-interest costs in cash loan agreements. The borrower no longer has to be afraid of excessive non-interest costs or debt collection costs. With an ordinary cash loan, you can’t lose all of your fixed assets because of the exact legal regulations, as well as the greater favor of the judiciary in dealing with typically usury commitments. This is one of the most important pluses for borrowers on the domestic market. In addition, cash loans do not require very high property collateral or financial guarantees. To obtain additional money, a positive creditworthiness and no arrears in the Credit Information Bureau database are enough.

 

Cash loan is therefore profitable due to availability

Cash loan is therefore profitable due to availability

Lack of high security when signing the contract, thanks to positive legal changes and greater public awareness regarding usury loans. A cash loan is a great tool to supplement your home budget in critical situations. The low monthly installments and the limit of non-interest costs enable ideal contract optimization. What do you think about the profitability of cash loans?

Cash loan comparison sites

In Poland, many clients still treat banks as institutions. For this reason, many customers decide to use most banking products in one bank, where they have had a bank account for many years. It can be considered that this is a large customer loyalty to a given bank and brand. On the other hand, in social surveys, one third of customers indicate that they would happily change the bank whose services they use. This is mainly due to the fact that the Polish banking market is still an unsaturated market. Many customers do not use any banking products at all. For this reason, a new client still brings banks much more profit than a regular client who has been cooperating with a given bank for a long time. Check the cheapest cash loan installment calculator, you’ll find on this page.

 

With cash loans

With cash loans

It’s not worth deciding only on the offers of the bank where you have a bank account. Although a cash loan in a bank where you have a bank account is usually much easier to obtain, but it should be taken into account that in other banks conditions can be much more favorable. This is due, inter alia, to the fact that, from time to time, individual banks introduce promotional terms for cash loans in their offers. For this reason, the best solution is to check different offers and compare to choose the best offer.

How easy it will be to get a cash loan depends primarily on the client’s situation. The time after which we want to use the money is also significant. When money is needed in a short time, the best solution is definitely to get a loan from the bank where you have a bank account. Currently, it is possible in this case to use a simplified form of obtaining credit. Banks offer the possibility of obtaining loans primarily for regular customers via the Internet or telephone contact. These types of procedures are primarily addressed to customers who are applying for a cash loan.

 

If money is not needed in a short period of time

If money is not needed in a short period of time

Then the best solution is to reach for a comparison of cash loan offers. This allows you to check and compare the cost of cash loans in individual offers. Banks offer different rates on cash loans, as well as different loan costs. Of course, the best solution is to choose cash loans that have the lowest loan cost. Such low costs can be obtained primarily by using promotional offers, which most often provide reduced interest rates or no commission on credit.