
Everything you need to know about car loans: conditions, benefits and advice for financing your vehicle
Definition and Importance
A car loan, also known as a car credit, is a financing solution designed specifically for the purchase of a vehicle, whether new or used. Unlike a personal loan, this type of loan is earmarked: this means that the amount borrowed must be used to purchase a vehicle, whether car or motorcycle.
Why is this crucial? Because it determines whether you'll obtain a loan: if the transaction doesn't go through, the loan agreement is canceled free of charge. This specific feature protects both the borrower and the lender, significantly reducing the financial risk in the event of cancellation or a dispute over the vehicle.
But that's not all: the car loan also gives you access to more advantageous conditions than an unsecured loan, particularly in terms of the interest rate (APR).
Specific advantages of a car loan
Choosing a car loan means benefiting from a range of advantages...