Car loan during parental leave

If a baby completes the family, then exciting months and years are on the doorstep for everyone involved. It is important to provide the new little family as well as possible and to prepare everything so that everyone feels comfortable and can meet all needs. One of the basic needs of our time is also a car. A mobile pedestal that brings the family to any place and helps with many everyday things. But even if a car already exists, it can happen that this must be replaced during parental leave against another model. Be it because it is old and defective. Or because the new family member requires a lot of space and this is simply not given in the old vehicle. After all, not only a new family member, but also a stroller and many other important utensils must be transported for the new earthlings. The fact that the old car reaches its limits may not surprise us is completely normal.

The car loan during parental leave – the considerations

The car loan during parental leave - the considerations

If a loan has to be taken up for the purchase of a new vehicle, the great consideration begins. Where is a car loan possible during parental leave? Which prerequisites must be brought for it? And what must be observed when recording necessarily?

A car loan during parental leave differs slightly from conventional credit. Since a parent is on parental leave, they can not take the loan. It can not even act as guarantor or co-applicant because the banks do not view the parental allowance as income. They see in it only a social allowance, which can not be used as collateral for a loan. Regardless of whether the person concerned wants to act as a borrower or merely as a “supporter”.

This must be noted

This must be noted

A car loan during parental leave is no easy task, as the banks look very closely at how the borrower’s family circumstances are. Since only the parent can take the credit that is not at parental leave, the borrower must have such a high income that this is enough for him and the rest of the small family. If this is not enough, a co-applicant must be sought, preferably within one’s own family, since banks are the most likely to agree to a loan.

Since a car loan always considers the car as collateral, there is no need for further collateral. Only the private credit must vote – but this is a prerequisite for any loan.

Here is the car loan during parental leave

Here is the car loan during parental leave

With good conditions, the car loan can be taken during parental leave at any provider. Whether car dealership, house bank or any other bank in Germany: The offers are so extensive that certainly something suitable will be found.

To find the best deal, a comparison should always be made. This is best done with a comparison calculator, which can be found on many websites on finance and loans. Within a very short time, the calculator will show you some very cheap and worthwhile offers that only have to be evaluated afterwards. The best offer can then be requested directly afterwards. Often directly over the Internet, as the calculator links to the page of the offering bank. There then only the application must be completed and provided with the necessary documents. If you send everything to the bank for review, they will check the loan application and make a decision on the approval within a few days.

If you turn personally to a local bank or a car dealership, you can expect faster with a commitment or a rejection. Because the application is then usually directly tested and evaluated. If everything works, then the car can be bought and used directly afterwards.

Car loan for a second-hand car: gasoline or diesel

At the end of this year, a diesel car will no longer be cheaper than a gasoline car. Automatic made that prediction in Het Nieuwsblad. About 5 years ago there was still a gap of more than 20 euro cents in price difference, while it has now shrunk to a difference of 1 euro cents. Chances are that by September or October diesel will be more expensive than gasoline. The only advantage that remains then is that your engine uses less. Those who often cover very long distances are better off with diesel. But if you use your car for short journeys in the city, you better opt for gasoline.

Hybrid or electric

Hybrid or electric

In addition, you have 2 other options, namely the hybrid and the electric car. A hybrid also has a traditional gasoline engine, but also generates electricity by braking. This way you drive short distances on the electric motor and you automatically switch to petrol for longer straight sections of the highway. The big disadvantage of the hybrid is the more expensive purchase price and the limited possibilities to purchase a second-hand copy. That also plays a role in obtaining a car loan.

The most environmentally-friendly option is of course the fully electric car, which is accompanied by a number of tax benefits in Flanders. For example, there is the zero emission premium, which is still 3,000 euros this year, but will disappear completely by 2020. In addition, you enjoy a reduced road tax and electricity is cheaper than gasoline or diesel. The disadvantage is of course that the purchase price is much higher.

Before you take out a car loan at the bank, it is better to list everything well. Think carefully about which type of second-hand car you need and what you will use it for. Then you determine the budget that you think you will need, including costs that you will still have after purchase. With that total sum of money in mind, you go to the bank for the best car loan for your car. And remember that borrowing money also costs money.

Car loan with benefit

 

A loan to finance a car if you only receive benefits can often be difficult. Before you take out such a loan, it is also advisable to see whether this is justified. If you cannot repay the car loan with only your benefit, then your financial problems may become even greater. You must therefore always carefully check whether there are no other solutions to finance your car.

Borrow with a benefit

Borrow with a benefit

The type of benefit you receive actually makes little difference when borrowing to finance a car. It makes no difference whether you have to make ends meet from, for example, unemployment benefits or invalidity benefits, in all cases your income will be the same as that from a full-time job. Banks, however, are commercial institutions and therefore aim to make a profit, so taking out a loan with a benefit can entail quite a few obstacles.

Seizure of persistent payment problems

Seizure of persistent payment problems

It is very important for banks that you can repay a loan as agreed. If you do not succeed in doing so on time, you may be able to seize your benefit, just as can happen to someone with a salary. However, a lender will never be able to seize your entire benefit.

In principle, it is therefore also possible to seize benefits, but not the full amount. Moreover, there are a number of exceptions that in principle cannot be seized:

  • an allowance for orphans,
  • a living wage,
  • an allowance for the disabled,
  • child benefits,
  • income guarantee for the elderly,
  • financial support from an OCMW.

Maintenance creditors are an exception to this rule, but they can seize the aforementioned income.

Calculate the expected monthly charges

Calculate the expected monthly charges

As a rule, a benefit is not a huge sum of money. The moment you want to take out a loan while you have to make ends meet with a benefit, then you have to take into account the fact that there won’t be much money left to live on every month. With a temporary benefit and the prospect of resuming your work, your situation is considerably more favorable. However, even in that case, a lender will often assume the current situation.

Perhaps before you take out a car loan, you can better check if there are no other solutions to raise the necessary money. You may have items at home that you no longer need, but that you can still sell.

Which loan is possible with a payment?

Which loan is possible with a payment?

To be able to take out a loan with a bank, you must have income from work. With smaller loans, benefits are of course also considered, but taking out a car loan for a new car of, for example, 20,000 euros will not be possible.

Take out a mini loan with a benefit

Take out a mini loan with a benefit

Taking out a mini loan with a benefit is often no problem. Often you can even take out such a small loan (a maximum of 1000 euros) if you are mentioned on the black list of the CKP. However, you must bear in mind that a mini-loan is relatively expensive, even if it concerns a small loan amount. A mini-loan can also be regarded as expensive compared to other forms of loan. Moreover, you will have to repay the money that you borrow through a mini loan within a short period (within three months).