Borrowing 10000 euros for a car is a much in demand amount and the question is therefore which loan is best for that and how long would you have to repay? One loan is not the other and when buying a car you must ensure that the loan does not run longer than the time the car lasts. This way you prevent that while you no longer have the car, you are still paying off the loan.
Borrowing 10000 euros for a car
Most people who are going to buy a car are looking for a loan of around 10,000 euros. This is an amount that you can get a new car for today. But a good second-hand is of course also a good option. Especially if you pay a little more you often get a better guarantee. But which loan is actually suitable for buying a car?
Continuous Credit or Personal Loan
This form of borrowing is more suitable to ensure that you have some money in hand if something breaks or needs to be replaced, such as a washing machine or a TV. When purchasing items that require a larger amount in one go, it is wiser to take out a personal loan. A personal loan has a fixed term and a fixed interest rate. The average duration of a personal loan is around five years.
Depreciation of the car
If you go to a bank or another credit institution, this will also look at the debit of the car. If you buy a new car, a five-year depreciation will not be a problem. If it concerns a second-hand car, the depreciation period may be shorter, depending on which model you have in mind. For example, the lender could decide to shorten the term, ie less than five years. This way they want to prevent that when you no longer have the car, you still have to pay back money every month.
Where can you take out a loan
The company where you are going to buy your car naturally also offers you to do the financing right away, often this is not wise because in general the interest rate is a lot higher than if you would take out a cheaper loan on the internet. On the internet you can already take out a personal loan for buying a car with an interest rate of around 5%.
Don’t be tempted
Many people who are going to look for a new car are often tempted to take out a loan immediately because it is so nice and easy that you can do everything at one company. You can of course consider this, but it still makes sense to request a number of quotes online. This way you can compare the offers and see what is the cheapest and best solution for you.