Automatic credit: advantages and disadvantages

You have certainly familiarly acquired with all the products offered by the banks to achieve our personal goals. And otherwise, it is important to discover that relations with the bank, financially and controlled, offer us many benefits and development opportunities.

An example in this case would be the credit of the car, which is an advantageous banking product, and for many of us and the only one (or the best way) to buy a car. It is good to be informed with all the advantages and disadvantages of the automotive market if you are preparing for a purchase for your garage.

What is the credit of the car

Credit car is a suitable solution for various economic scenarios in which you are. Perhaps you have not been able to save so far and set them aside in a bank deposit. Or maybe you don’t want to consume your savings on a car, but you want to invest them in something else. In this case, the Credit car is your long -term purchase you make using the bank’s help.

In particular, the car credit is a sum of money that you receive from a banking or non-banking institution for the purchase of a new or second hand car, contributing an advance between 15-25% of the car price. The advance differs from a bank to bank and also depends on the type of credit you do: Credito Auto in her or currency.

The life of the car loan is between 6 months and 7 years and up to a certain amount, its guarantee consists of the car purchased. In other words, if you cannot buy the car credit, the bank will be able to recover the amount you need to. If a car loan is required on a great amount (for example 15,000 euros), as in the case of a mortgage, the mortgage is required for a building.

Advantages for automotive credit

The main advantage for choosing a car loan is that it does not consume or block your savings in a good purchase. Therefore, you can continue to make plans with the money you put aside by paying the monthly rate for your new car.

Another advantage would be the readiness of the purchase. In the absence of current savings, the car credit helps you to buy a car without gathering money to the mattress. There are some events in our life that hurry to buy a car: a new family member, who moves to a house beyond work or a new job.

There are non -banking institutions that accept automotive credit also for people with negative history in the credit office. If you have already had an attempt to collaborate with the bank, which you have not been able to manage the car’s credit correctly, it offers you a second possibility.

Another great advantage is that some institutions accept up to 2 co-managers and consider the whole family income. So your possibilities have increased even more to get the car credit.

Disadvantages for automotive credit

A main disadvantage of automotive credit is the compulsory helmet insurance. This conditions the approval of the credit and is a cost that you will have to incur. It will also be granted in favor of the bank.

The car loan limits the choice of the car a little, especially if you opt for a used car. This shouldn’t be more than 5 years old.

A further effort for some is to receive entries in a bank account at the institution from which the car’s credit is required. It does not seem so bad, but it can be more disadvantaged for those who receive income in accounts open to the banks imposed by the company they work for. (You can support the deposit commission every salary day).

Another disadvantage is that for a car used, the amount borrowed and the refund period are smaller, precisely for the depreciation of the guarantee.

The conditions differ from a bank to bank, so it is better to study the market and offers that all banking and non -banking institutions have and choose what is better for you.