Auto loan: everything you need to know before signing

To buy a new or used car without breaking your budget, auto credit is a good solution. This specialized loan has several strings to its bow. Here’s how to take advantage of it.


After buying a main residence, buying a car is one of the biggest expenses for households. Spreading the payment by taking out a car loan can allow some to complete their transaction without delay.

Evaluate your car purchase budget

Buying a car on credit is a transaction that commits you. First assess your repayment capacity: generally, a loan is granted if your debt ratio, that is to say all of your monthly loan payments (real estate, consumption, etc.), does not exceed 30% of your income.

If you can, a personal contribution will lower the credit rate and/or the repayment period and therefore the total cost of your loan.

Take advantage of the specifics of auto credit

Unlike a consumer loan, which can be used to finance the purchase of any equipment or day-to-day expenses, auto credit is an “assigned” loan. That is to say, it can only be used to pay for the purchase of a car, new or used.

A feature that has several advantages:

  • On the one hand, the interest rates charged for car loans are most often lower than those for personal loans.
  • On the other hand, a car loan makes it possible to secure the transaction for the buyer: in the event of cancellation of the delivery of the vehicle, suspension of the sale or refusal of the loan, the transaction is automatically cancelled.

Consider car loan insurance

To compare car loan offers, take into account the Annual Effective Rate (APR) which includes all costs, including borrower insurance.

The latter, which covers the credit holder in the event of an accident of life (incapacity, death, disability, etc.) , is not compulsory for a car loan, but strongly recommended.

Because in the event of an accident in life (disability, death, etc.), if you have opted not for a cash purchase but for a consumer loan with insurance, that changes everything: not only will you have preserved your savings, which remains available to deal with the hard blow, but in addition the insurer will pay all or part of your reimbursements.


Why take out an Auto Loan?

  • You can finance your car.
  • You can postpone the repayment of your first monthly payment up to 3 months after the release of the funds (1)
  • You have the possibility to repay your loan free of charge at any time, in whole or in part, according to the conditions of the contract.
  • You can subscribe, in addition to your loan, to Auto Breakdown and/or Discount Capital contracts.

How does a car loan work?

You determine with your adviser the duration of the loan, its amount and the amount of your monthly payments according to your repayment capacity.

  • Solution Conso Auto is reserved for people aged at least 18 and assumes the acceptance of your file by LCL.
  • As soon as your adviser or telephone adviser agrees, your loan is released on the 15th day following the signing of your contract or on the 8th day if you request its early implementation?
  • Once the funds are made available to you, you can dispose of them freely.

What insurance do you they offer  ?

Death Insurance, PTIA (Total and irreversible loss of autonomy) and IT (Incapacity for work) at an annual rate of 0.828% of the capital borrowed.


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