Auto credit, what is it?

A car loan is a loan intended to finance the purchase of a new or used car. It falls into the category of consumer credit. This type of loan is triggered when you buy a car and cannot be used for the purchase of another asset, like a motorcycle loan. This is then referred to as affected credit.

Thus, it differs from a personal loan which aims to strengthen a cash flow. The car loan or car loan is therefore better perceived by a banker than the personal loan.

Auto credit between a new or used car

For the purchase of a new or used vehicle, the way the auto loan works does not change. Obviously, prices are very often different between a new and used vehicle. Therefore, the volume of credit is not the same. But in the case of a new vehicle, the banker takes into account the contribution of cash to the resale of the vehicle if this takes place within the first 5 years after the purchase.

In the case of a used car, even if the price is less important, the cash inflow on resale is often less. Before taking out a car loan, carefully calculate your car borrowing capacity so that you have an idea of the maximum loan you can apply for.