A fully-fledged consumer credit project, auto credit still concentrates a large part of loan applications. But how to find your way between a new car loan and the LOA solutions sold by dealers? How to make sure you get the best car loan in 2019, whatever your situation? Comparison of rates and advice not to be taken in.
Where to find the best auto credit 2019?
Is the best new or used 2019 auto loan the one sold with an LOA solution or rather a conventional loan? What should we think of the rates offered by dealers: are they as attractive as those for car credit? First of all, remember that you must systematically provide a vehicle order form to obtain a new or used car loan. When this is impossible, as in the case of a purchase directly from an individual, it is then necessary to turn to a credit without proof of use.
Let’s list the different players capable of offering car credit in 2019:
- Online Auto Credit Organizations
- A classic or online bank
- Most insurers
- Certain specialized sites
You should know that, in general, the best idea to find a cheap car loan is to turn to an online credit comparator. Specialized in simplified procedures, credit organizations systematically lead the way in our classic auto credit simulations. The garage owners do not get out until their promotional periods. The banks are very late. They generally only offer car credit to their customers.
The best auto credit 2019 in five simple steps
Three simple steps allow you to get closer to the best car loan in 2019, whether it is a new or used car loan.
- Identify the amount of the desired car and perform a credit simulation online, on our credit comparator.
- The auto loan form allows you to see the best rates, but above all to get an immediate answer in principle.
- The organization having accepted the request at the best rate confirms its agreement by email within 24 hours.
- Bring the non-binding credit contract to compare other more traditional offers (bank, concession, insurers).
Our experience in comparing credits allows us to say that the best car loan 2019 has a good chance of being owned by an organization. The latter actually have much more experience in processing requests.
Online car credit = cheap auto credit?
Car loans from specialist organizations have several major advantages:
- The possibility to compare the best APR rates without pressure and at any time, thanks to a credit comparator.
- The speed of the request: a few minutes are enough to obtain an immediate response in principle.
- A final answer within a few days on average, synonymous with fast car credit.
Understanding the APR rate, barometer of cheap auto credit
The APR rate (annual effective annual rate) is the only benchmark for consumer credit. Indicated on each loan offer, it indicates precisely the cost of interest, as well as administration fees (or additional costs). Put in relation with the duration of repayment, the APR is the best ally in a search for the best car credit 2019. Our credit comparison is only based on the APR rate to establish an honest ranking, namely the cheapest credit at more expensive.
The 2019 auto loan rate barometer
Here is a representation of the best auto loan rates for 2019 from organizations connected to our comparator, for several amounts. Rates are subject to change, depending on promotions posted by specialists.
|For a new car loan of $ 15,000||Best credit rates car|
|Over 12 months||1% to 1.50%|
|Over 24 months||1.50% to 2%|
|Over 36 months||2.50% to 3%|
|Over 48 months||2.80% to 3.20%|
|Over 60 months||3% to 3.50%|
|72 months||3.80% to 4%|
|84 months||4% to 5%|
Best car loan 2019: what place for LOA?
LOA (rental with option to buy) is not to be proscribed – far from it – but costs more than a conventional car loan. Our opinion on the LOA also highlights several weaknesses of the formula, namely:
- The absence of APR rate on the contract.
- The borrower becomes the lessee of the vehicle for the duration of the contract and not the owner.
- Obligation to respect a mileage rate, under penalty of paying penalties.
- The car must be in immaculate condition after the years of rental, otherwise the announced amount of the repossession could be lowered.
Despite some doubts, three out of four new cars have been funded via an LOA solution since early 2019 (see figures). It must be said that the formula sometimes offers a financing solution to individuals whose application for classic 2019 auto credit has been refused. We can however say that this is not the best car loan 2019 if we are interested in its total cost. We prefer a classic car loan.