What they are and how they work
The car loan allows you to buy a vehicle even for those who do not have the liquidity to pay for it in a single payment.
Which category they belong to
Auto loans are part of the targeted financing category. These are intended to allow the purchase of an asset (in this case, a vehicle) in installments. The mechanism of car loans follows that of personal consumption credit, with the difference that, for these types of loans, the loaned amount is not credited to the beneficiary’s account but to that of the car dealer to be purchased. The borrower then immediately receives the vehicle and pays it in installments, which represent the repayment of the loan obtained. The retailer must make the vehicle available to the private individual and is in no way involved in the development of the credit transaction, as he has no responsibility for the regular repayment of the same.
Who should be requested
The car loan should usually be requested from banks or financial institutions. It can also be activated by the concessionaire / seller who, by means of specific agreements stipulated with credit institutions, initiates the request for loan request. To obtain car loans it is necessary to possess the requisites required for personal financing. First of all, have a good credit rating. In summary: having a certain income (from permanent employment, fixed, self-employed or retirement), duly documented with payroll, payslip issued by the pension institution or tax return. It is also necessary not to be registered in the end-to-end knowledge company’s list as a “bad payer” or in the public register of promissory notes. Finally, have a monthly spending capacity that allows you to pay the debt to the lender.
In addition to these, specific subjective requirements are also required. We remember: age not over 75 years, Italian citizenship or permanent residence permit, lack of criminal charges, regular possession of a valid license and, in some cases, the submission of a third party guarantee can also be requested or turning on a death insurance or protecting against the risk of losing a job.
Auto loans are usually paid at a fixed rate and amortized in constant installments. The repayment of the capital starts only after a pre-amortization period, during which only the interest on the loan is anticipated. To get an idea of the cost of car loans currently available on the market, you can request a quote, fast and free, simply by filling out the form on the side.