6 x Smart Borrowing for Car

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borrow money for a car

Do you want to buy a new car?

Second-hand / occasion or new from the factory.

But do you still need some money because you just don't have enough available?

Then borrowing is a solution .

We give you 6 advice and tips to consider.

In this article:

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 advantageous loan. You probably already intended to, right? But where can you find the best and cheapest credit for your new car? Well ... here

In the overview above you can see real time (live) the best loan interest rates at the moment. You can click directly to the provider for more information about the conditions, request a quote online and close immediately. You can also click on 'all loan interest' and then even specifically compare car loans by costs.

Would you like a financial expert to take a look with you? Then contact Credit Group USA 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 credits. And you can always compare their quotation with your own online comparison to see which is the most advantageous.

2. Borrow money for car wise / smart?

This is a very valid question that we have to 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 actually not at all, but would you like to buy the car of your dreams and not have to save for it for years to come?

Whatever the reason you think about borrowing, know that it 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 carefully about. And always make sure you go for the best loan in terms of type and costs, as we have described how you can do that above.

3. Loan without BKR review / registration

Every loan in the Netherlands is registered with the BKR. This makes it more difficult to take out a loan afterwards, such as a mortgage. Each provider will first check with an application whether you already have another loan. The purpose of this check is that you do not incur too much on yourself with multiple credits and therefore you can no longer pay your monthly repayments. So it is basically to protect you so that you don't go bankrupt.

Now you can still borrow money without doing a so-called BKR check . This is not an amount with which you buy a large new car, but can perhaps pay the last bit: up to $ 2000, - 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 on your account within 24 hours.

Please note that the term of these types of loans is short, namely a maximum of 4 months. You must therefore be able to pay this back quickly. For example, if you know that you will receive your holiday pay or a bonus / year-end bonus in a while.

For example, if you borrow the maximum 2000, you pay it back in 4 equal installments at $ 507.29 of 31 days each. A relative advantage of this short term is that the ultimate interest costs are “only” at $ 29.24

This would have been much more with a longer term, as the interest rate is high at 7.08%. Do take out such a loan with an experienced and recognized party such as Money Now . They do this internationally in many countries on all continents.

Not that there are many providers in this market, because in the Netherlands the only other permitted provider is Saldodipje.nl and it also has exactly the same conditions.

4. Car financing private: types of credit

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). These protect you as a consumer against inaccuracy and unclear conditions.

A personal loan is the most commonly used option for a car, but a revolving credit can also work well. A mini loan can also be used in addition to a portion of your own money. So depends a bit on your preferences and wishes. You can click on the links for more information about the specific products and read the pros and cons. We are not going to recommend either of the two.

5. Financing through car dealer, to do or not to?

You can always consider financing your car directly through the dealer. Ultimately, this is 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 has prohibited this is because it was misleading because, despite a lack of interest, financial conditions and obligations were indeed involved.

Now the sellers are offering 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 has shown that the loan through a dealer is often more expensive . But that does not always have to be the case.

6. Alternative: private lease

You can also do something else instead of borrowing. Or actually it is a completely different option than buying a car at all. You can also lease that cart! Where in the past you actually only did this through your employer or your own company, you now see that the so-called private lease market is growing strongly. This has the following advantages and disadvantages:

Benefits

  • 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 lease company. Such as maintenance, depreciation, road tax, insurance, etc.
  • No savings or loan needed: Because you do not buy a car, you do not have to deposit a purchase amount. 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 absolutely want a new car, lease is certainly a good option.

Cons

  • Canceling is expensive: terminating a lease contract prematurely is expensive because you have to pay hefty fines.
  • Driving can be cheaper: an occasion is often cheaper to drive than a new lease car. Even if you have to purchase it with your own money. As long as you then “drive” it all the way.
  • Expensive with little use: does your car stand still a lot? Then leasing is not interesting. Leasing companies only charge from 10,000 or 15,000 km per year. Anything that you don't 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 is still really to save for that car . Patience therefore earns you money, although that is not always an option.