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Auto credit in Belgium, how does it work?

New car models are the dream of young drivers like those who have had a driver’s license for several years. But to take advantage of hybrid cars with
various and varied functions , it would be necessary to have substantial funding. In order to respond to this problem, some have opted for auto credit. The point.

What is auto credit?

Auto credit is basically a banking service. It is an affected loan which offers you a capital of $ 88,579 only for the purchase and repair of cars . It is repayable over several years, in 10 or 15 years on average, in this case.

It is an assigned loan. And in this sense, you must present supporting documents to benefit from it. This is the case, for example, with quotes from dealers or proposals from sellers if it is a used vehicle . To this are also added the classic supporting documents such as identity documents, residence certificates, etc.

Recently, however, banks no longer have a monopoly on auto credit. Belgian dealers can also offer them. But be careful, even if the offers seem practical and accessible, generally the offers of this kind cost more.

The advantages of auto credit

Auto credit has certain advantages. After the drop in loan credit on the European market, the offers became more attractive. The Belgians were able to increase their debt capacity and thus borrow more for a cost identical to that of 10 years ago.

In addition, the process to claim an auto loan offer has been made easier since the advent of online banking. Now all it takes is a few clicks to embark on the adventure. And the loan establishments answer you as soon as possible.

It is a quick and secure financing plan. This is an assigned credit that can be canceled automatically if the object of the sale and financing is not suddenly available. The termination of the contract will be without penalty. But it all depends on the conditions under which the cancellation will be made.

The disadvantages of auto credit

Auto credit, however, is not for everyone. In particular, you have to prove that you have a good financial situation to get involved. If necessary, this would represent a risk for your financial health according to the accountant in Forest, Uccle or Brussels.

As with any other consumer credit, the auto loan commits you until it is fully recovered. Failure to meet a monthly payment exposes you to over-indebtedness and all the resulting consequences: filing in banking incidents, banking bans, auctioning of pledged items, etc.

In addition, auto credit can have a substantial rate. Bank returns vary not only from institution to institution, but also depending on your borrower profile. You will need to ask a Forest accountant to accompany you during the search for the best alternatives on the market to limit the risks.

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