Like every year, it is now looking back to the offers that financial institutions have come up with in connection with the Motor Show . At the time of writing, Beobank applies a low rate for its car loan of 1.29 percent. During the previous 2017 Motor Show, however, the lender opted to temporarily lower its interest to just 0.89 percent. At the time of writing, Beobank has not yet announced its offer for the Motor Show, but it is likely that a lot of good things will be coming for borrowers. Are you not planning to take out a loan for the purchase of a new, but of a second-hand car? In that case you will have to take into account a cost which is a lot higher.
Loans for second-hand cars are becoming more expensive
Where financing for new cars becomes cheaper, the cost price for second-hand cars just rises. The average cost price for a car loan for a second-hand vehicle is up to four times higher than the interest charged on financing for a new vehicle. Several factors influence the cost price as well as the possibilities of a second-hand car loan. This not only concerns the age of the car, but also the specifications, the mileage as well as the possible own contribution that is realized. However, it should be noted that the price tag of a car loan for a second-hand vehicle is significantly higher today than it was one year ago. This is certainly something to take into account when buying a second-hand car.
Borrow money from the car manufacturer yourself or not?
People who have little or no confidence in professional financial institutions can always choose to borrow from the car manufacturer themselves. That is obviously a possibility, but in practice it is not always interesting. In the majority of cases, the average cost price that has to be paid for such financing is much higher compared to the best offer sent by a bank to the world. Moreover, the credit conditions are often much stricter, so there is hardly any margin for temporary financial problems. Before choosing to take out a loan for your new car from the car manufacturer, it is therefore always worthwhile to check the offer of the banks and other financial institutions. This way you can make the best choice.
Car loan has never been so popular before
The low cost of a car loan has also given the credit form an extra boost. Never before have so many Belgians opted for a loan to buy a new or second-hand car. This may seem a bit striking given the low savings rate offered by banks, but in practice this is a logical explanation. An investment in a car is regarded as a ‘lost investment’ in the majority of cases (an oldtimer left there). This, of course, because the value of the vehicle does not rise over the years, but only decreases. People prefer to keep their savings for investments that can generate extra returns. This also has given the popularity of the car loan well done.
Take out the cheapest car loan at the 2018 Motor Show
Are you also planning to buy a new car and are you going to take a look at the Motor Show? In that case, it is still a matter of waiting until the offer from Beobank is known. Perhaps this lender can also offer you the best possible conditions this year for taking out financing for a new vehicle. One thing is already certain now, if you want to borrow money for the purchase of a new car it is definitely worthwhile to use the offers during the Motor Show 2018!