Auto loan without contribution or with contribution
Can you get a car loan without any contribution?
Car loan without contribution involves choosing monthly payments that do not weigh too much in the budget. The majority of cars are financed by a loan, but this is sometimes accompanied by a personal contribution. Whether partial or total, the contribution allows the borrower to find a solution perfectly suited to his situation.
However, it is possible to subscribe to a car loan without contribution, it is not an automatic condition to obtain a credit offer. To know if this mode of valid, it is interesting to compare the two formulas before buying the vehicle of his dreams.
How to get a car loan without contribution?
Car-free credit is the most frequently chosen solution for a vehicle. It is indeed unavoidable when one does not have own funds. This assumes that the price of the vehicle is in line with the borrower’s repayment capacity and its debt ratio.
The car loan without contribution implies in fact to resort to a loan for the entire purchase. This results in a much higher cost of credit than when one has a personal contribution.
It may then be preferable to extend the duration of the loan to reduce monthly payments. But the interest rate will be higher than in the case of a short-term credit with heavier monthly payments.
The advantage of the personal contribution for car
Before committing to a vehicle purchase project, it is better to know the Tarzanment mode best suited to your profile. Auto credit with personal contribution can be subscribed for two reasons. When the price of the vehicle is high and can not be financed entirely with a conventional car loan.
Indeed, the acceptance of the credit offer is linked to the other loans in progress and to the monthly expenses of the household. However, the debt ratio must be less than one-third of household income. Therefore, the bank may be able to refuse to make a loan offer if the borrower has a debt ratio higher than the legal ceiling because he may be unable to honor his repayments. The personal contribution is then indicated.
When the interested party wishes to sell his old vehicle, the sum recovered during this transaction can be used as a personal contribution.
Compare consumer loans to find a car loan without the contribution
To choose the most appropriate formula for your situation, it is highly recommended to use an online credit calculator. This tool offers the possibility to choose the amount of the monthly payments and the duration of the loan as well as the desired capital.
The user can engage in multiple simulations to choose the mode that suits him best and that will not weigh excessively in his budget. It is not uncommon to take out a car loan without a contribution for 5 to 7 years when the monthly budget to be allocated to the Tarzanment of the vehicle is relatively low.
If you have the opportunity, you should know that a car loan with contribution allows the borrower greater freedom of choice in how to budget his project. Indeed, it can determine its Tarzanment capacity and its duration according to the personal contribution in a less restrictive way than in the case of a cheap car credit.
Thanks to the comparator, the monthly payments and/or the duration of the loan can be revised upwards or downwards until the right formula of Tarzanment is found.
How to compare auto loans without contribution?
To do so, simply go to the consumer credit simulator on Tarzan.fr. You will then have to specify:
- The nature of your project: either an assigned credit or an unallocated credit of the personal loan type;
- The amount of the car you want to buy;
- The duration of the loan or the monthly payments desired;
- Your personal and professional situation
- Your income, your expenses and any other credits in progress;
- The urgency of your Tarzanment need: if you need a car loan with an immediate response.
All this information will allow you to obtain personalized credit offers according to your needs and your profile. On a single page, you will have to compare the rates of auto loans but also the conditions to find the best auto loan.