To be sure of being on a real car loan comparator, you must check:
- The presence of the fixed APR rate
- The registration of the company at ORIAS
- That the comparison is made on the cost of credit
And these 3 criteria must be verified. Because many credit comparators offer rankings that show a comparative imitation and even rates but whose only classification criterion is the money they will receive.
A good online car credit comparator will offer at least this level of service. But we can go even further to obtain a cheap car loan.
Online car credit comparator: efficient and inexpensive
A car loan comparison based on the APR rate
An auto loan comparator simplifies the procedures for customers and collects all of the markets offers for them. The first important point not to be overlooked when consulting a car loan comparator is the criterion used for ranking. The main criterion of a good car credit comparator must be this credit rate: APR, the annual effective annual rate. Indeed, this is the rate defined by law as a reference in terms of communication on consumer credit. This rate includes all credit charges including administration fees if there are any. This is what makes it possible to obtain a comparative objective auto credit.
The cost of credit
Of course, the APR rate is essential to an auto credit comparator but it is not enough. It is also important to show the cost of credit. The latter can be influenced by the speed of repayment in particular. However, many comparators ignore the cost of credit. Moreover, they present a classification of the car loan by organization whatever the duration borrowed and the amount borrowed.
But if a credit organization or a bank offered the best credit every time, that would be known! And an auto loan comparator wouldn’t do much. We must therefore be wary of comparators who do not ask to detail the need for financing and the client file.
Official credit comparator
In France, the official financial intermediaries are all officially registered in the ORIAS file. It is the single register of insurance, banking and finance intermediaries. We must therefore find in the legal notices of an online car credit comparator its registration. Our registration is 14006971 as a non-exclusive agent in banking operations and payment services (MOBSP).
To go further and ensure that customer data is processed in compliance with the regulations, it is also necessary that their processing be the subject of a declaration to the CNIL (for us CNIL N ° 1784516).
Save with a cheap car loan comparator
A consumer loan comparator does not yield anything but it can save on credit costs. Let us take the concrete example of the most requested car loan: a loan of 15,000 USD over 60 months to finance the purchase of a new car (contribution deducted and generally linked to the recovery or resale of the old vehicle). Here is what our car loan comparator is giving at the moment (December 2017):
- Least expensive fixed APR rate: 2.90% monthly payment: 268.61 USD cost of credit: 1,116.60 USD
- Most expensive fixed APR rate: 6.07% monthly payment: 289.35 USD cost of credit: 2,361.00 USD
Beyond making it possible to obtain the best car loan, a car loan comparator can make it possible to avoid paying nearly 1250 USD more for exactly the same loan! And the most expensive car loan offer at the time of this statement is offered by one of the credit organizations that we see the most on television.
Obtain an agreement for an auto loan application
Offering an objective auto credit comparator does not guarantee you will get the best auto credit rate. Indeed, on the car loan market:
one in two car loans is refused
This is the reason why we have put in place an exclusive system which makes it possible to obtain an immediate response in principle from the organization offering the cheapest car loan.
After filling out our questionnaire, the credit request is sent automatically and in real time to the cheapest credit organization. The customer then benefits from a response in principle without obligation immediately. If the application is accepted, that’s fine. If this is not the case, it will be possible to interrogate with a single click the organization classified second for the request. And so on on our auto loan comparator until you get the best personalized rate for your file.
The credit will only be effective when the customer returns his signed contract with all the supporting documents. This first step is not engaging but essential to know what is the best rate that everyone can hope for.
Avoiding the Traps of Auto Credit
Consumer credit is an area that is fairly well framed by law. However, and as everywhere, we must be wary of overly aggressive commercial offers.
Promotional rates too catchy
We often see commercial hooks that promise super low auto credit rates. They are also integrated into our car loan comparator. But if we pay attention to the legal notices (the sentences written in very small at the bottom of the posters which often start with *), we see that the promo rates very often are offered on a reimbursement period limited to 12 months.
Repaying a credit of 15,000 USD (if we take our example) over 12 months generates monthly payments of more than 1,200 USD! What very very few people can afford. But no matter, if the customer called or went to the dealership, the trap worked. The seller will always offer to be able to take a credit over a longer period to obtain an acceptable monthly payment. But there, the rate will increase sharply! And the only way to know if this new rate is interesting, is to check it with our auto credit comparator. Nothing should be signed before checking.
Do not neglect the negotiation on the price of the car
Our auto credit comparator does not identify the offers offered by dealers and their automotive financial subsidiaries such as Credipar for Peugeot Citroën or Diac for Renault). They are rarely the best on the market and often specific to each regional concession. However, it happens that once or twice a year, they offer a big promo which can go up to a car loan at 0% APR rate!
In this case, it is clear that the offer is unbeatable. You couldn’t find better in our auto credit comparator. Nevertheless, we must remain vigilant about global negotiation. Indeed, there is a good chance that if there is a big discount on the cost of the credit, the seller limits the discount on the price of the vehicle. However, a free credit on financing of 15,000 USD over 60 months is around 1,500 USD offered.
However, the average discount is around 24% according to Challenges for an average purchase amount of 20,000 USD. Or a discount of more than 6000 USD to compare to our 1500 USD from the credit. Conclusion: Never neglect the negotiation on the price of the car, even in the event of credit reduction.
Used car credit comparator; new car
It is through the choice of the type of project that our system switches from a used car credit comparator to a new car credit comparator or vice versa.
The main difference is in the rates that can be obtained. Indeed, the new car credit rates are a little cheaper than those of used cars. The reason is quite simple. In case of non-repayment of the credit, the organization will come to seize the car and get a better resale price for a new car. But beware, impossible to cheat. To obtain a new car loan, you will have to provide proof of purchase of the car such as a purchase order for example.
For the comparison of used car credit, there is no photo, the best credit is offered by specialized credit organizations. In any case, since most sales are made from individual to individual, concessions are in fact excluded. To obtain the classification of the best rates, you will have to choose the “Used Auto Loan + 2 years” project in our auto credit comparator.
NB: our auto credit comparator also allows you to find the best motorcycle credit. Indeed, even if you have to choose the project “New car loan or -2 years” or “Used car loan + 2 years”, this type of credit can be used to finance any type of vehicle.
Negotiate the auto loan rate
This method is mainly intended to negotiate the rate of a new car loan.
- Get the best rate from financial organizations
Our auto credit comparator will simply provide the best possible rate that anyone can get from the largest credit agencies in the market.
- Receive a formal proposal
After completing our questionnaire, if the file obtains the first agreement in principle, the client will receive a prior offer by email and / or by post.
- Go to dealership
By not forgetting to take the offer received through our car credit comparator, it is only what will ask the seller to do better. If he can’t, then you’ve already got the best deal.