Car/Motorcycle credit

Car/Motorcycle credit : Your Fast Track to the Road

Car/Motorcycle Credit is much more than just a loan, it's the opportunity to make your dream of a new vehicle a reality, whether it's a car for the daily commute or a motorcycle for adventures on the road. At AGRI FINANCIAL, we understand how essential mobility is to modern life, which is why we've simplified the process to make it easier for you to get on the road.

What is a car loan?

A car loan is a loan taken out to finance a new or used vehicle. Considering the considerable budget required, most households are unable to access the full amount immediately, or to dip into their savings.

A car loan is the ideal solution. Also known as earmarked credit, it is intended for the purchase of a vehicle, to the exclusion of any other goods or services, and generally offers attractive interest rates, as it is backed by a concrete asset, in this case the vehicle itself. What's more, it offers a flexible repayment period, which means you can choose the repayment term that best suits your budget. This allows you to keep your monthly payments under control, while giving you the freedom to get on the road quickly.

What's the difference between a car loan and other types of credit?

A car loan, as the name suggests, is specifically designed to finance the purchase of an automobile. However, it is important to note that this type of loan is closely linked to the acquisition of the vehicle itself, which implies certain important constraints:

The purchase of a vehicle and the granting of a car loan are intrinsically linked, so the absence of one automatically cancels the other.
In practice, if the car is not delivered or if the sale fails, the car loan is automatically cancelled.
What's more, if the borrower fails to obtain the loan needed to finance the purchase of the vehicle, the sales contract becomes null and void.
It is important to note that repayment of the loan cannot begin until the borrower has taken delivery of the car. What's more, in the event of a dispute concerning the purchase contract, there are provisions which, under certain conditions, allow repayment of the loan to be suspended.

This close relationship between the car loan and the vehicle purchase ensures that the borrower only starts repaying the loan once the purchase transaction has been confirmed and secured, offering added protection to the parties involved in the transaction.

What is the ideal term of a car loan?

The chosen duration depends on two factors:

Amount borrowed ;
Your repayment capacity.

Clearly, there's no such thing as an ideal term. If you're on a tight budget, it's in your interest to reduce your monthly payments, and therefore extend the term of your loan.

Let's take two examples. You've found a car for €30,000. If you repay over 7 years, you will pay €420 per month, excluding insurance. If you choose to repay over 5 years, the monthly payment rises to €555. So it's your pre-credit income and expenses that determine how much you can reasonably afford to pay back each month.

Documents required for a car loan application

Before granting you a car loan, your bank or credit institution will ask you to provide documents attesting to your situation. Your banker is likely to ask for :

Valid proof of identity;
Proof of address less than 6 months old;
RIB ;
Proof of purchase;
Your last pay slip;
Your last tax assessment ;
Your employment contract;
Your latest bank statement if you are applying for a car loan through a bank other than your own.

Frequently asked questions about car loans

How do I take out a car loan?

Depending on the insurer, you can take out a loan directly online after running a simulation, or with an advisor over the phone. You can, of course, visit a branch if you're borrowing from a well-known establishment.

Which bank is best placed for a car loan?

To find out, compare offers with our car loan comparator. You'll get an overview of the offers on the market to find the one that best suits your profile.

What loan rate for a car?

The borrowing rate depends not only on the bank you choose, but also on the amount borrowed and the term of the loan. A simulation will give you a clearer idea.

How can I get a car loan quickly?

Online banks sometimes offer fast credit so that you don't miss out on a good opportunity. Once again, compare offers to find out how long it will take for the funds to reach your account.

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