The purchase of a vehicle is an important project and often requires the purchase of a car loan. This credit, belonging to the category of personal loans, can be contracted over 7 years or 84 months.
Auto credit is a popular solution for the French in the purchase of a new or used vehicle. Like other banking products on the market, this type of loan is strictly regulated by law. How to make a car loan over 7 years or 84 months? Details.
Why take out a car loan over 7 years?
Auto Loan allows you to finance the purchase of a new or used car. The Consumer Code requires financial institutions to have a maximum loan term of up to 84 months when it comes to financing a new vehicle. For used cars, this period is reduced to 72 months. These rules aim to protect the consumer and limit the risk of over-indebtedness.
Taking out a car loan over a period of 7 years gives you several advantages. Indeed, the amount of the monthly payments will be easier to bear for the borrower. This period is particularly suitable for the acquisition of new vehicles that are logically more expensive, by providing greater financial flexibility. On the other hand, a shorter auto credit can be considered if the buyer has a large initial contribution.
Subscription of a car loan: operation
Your decision is made, you will change your vehicle and have already chosen your new model? First and foremost, you must evaluate your debt capacity, which is the maximum amount of your monthly credit repayment. It is best if this threshold does not exceed 33%, or about one third of your income.
To find an auto loan offer tailored to your needs, you can go to a bank or directly to a dealer. Indeed, your seller may offer to sign this credit agreement through the financial subsidiary of the automobile brand he represents. Many households take out car loans directly from the dealer so that sales and financing can only be managed by a single contact.
Before subscription, the offers offered on the market must be put in competition. For this you can use an online credit comparator and ask for several free quotes. If the total cost of the credit over 7 years is important, other criteria must be studied: the interest rate, any fees, the amount of fees in case of early repayment, the amount of the monthly payments, the repayment period, the special conditions of the contract. All this information appears on the pre-contractual information form (FIP) that the lending institution must give you.
Make an auto credit simulation online
Your car loan commits you to 7 years or 84 months. Therefore, it is essential to study carefully the contract that you are about to subscribe. To help you, do not hesitate to use the car loan simulator online. This tool will allow you to accurately assess the amount of your future monthly payments taking into account several criteria including the value of the vehicle, the amount of your personal contribution, your income, the duration of the desired loan.
You now have all the cards in hand to select the best offer of car credit over 7 years or 84 months and realize your purchase project in the best conditions.