Articles by David Redding

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

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

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

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.

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

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.

 

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

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

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

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?

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

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).

Today, a lot of people, and therefore also pensioners, use a so-called car loan to finance the purchase of a car. The moment a pensioner buys a car from a garage company, this can in a large number of cases also take care of the application for a car loan. In addition, as a pensioner you can take out a car loan at a bank or other financial institution that has committed itself to providing loans and credits.

Borrowing from the garage?

The moment the garage, where you want to buy your car, wants to arrange the financing for you, that may seem like a friendly and helpful gesture. However, you must not forget that by agreeing to this, you can often negotiate less or even no discount on the purchase price of the car you had in mind. It is therefore better to look for a cheap car loan yourself to finance your dream car.

The most affordable car loan for pensioners

Due to the large number of different lenders, many pensioners may no longer see the forest for the trees. Almost all different lenders apply their own terms, rates and options. Of course, most of them will also claim to offer the most affordable car loan for retirees. If you can believe their advertising talks, they all also offer the most favorable conditions and most advantageous loan rates. If you would blindly rely on these smooth sales pitch, instead of making a good comparison between the different providers and loan forms in advance, the final borrowing costs could be considerably higher.

To find the most affordable car loan for pensioners, a thorough investigation is not a superfluous luxury. By quietly taking the time to make a comparison of various lenders and loans they offer with which you, as a pensioner, can finance the purchase of a car. You can do this, among other things, by requesting quotes from multiple providers, or by conducting a so-called loan simulation on a car loan for pensioners on multiple websites of credit providers. By following this path you can quickly save quite a lot of borrowing costs on a car loan.

Interest on a car loan for pensioners

Every loan and every credit that is provided by an official financial institution will always be charged a certain loan fee. This compensation is a form of compensation for the financial risk that a credit provider runs by lending money. In general, the loan payment is calculated as an interest rate on the outstanding debt. Because a car loan ( also specifically intended for pensioners ) is actually a variant of a traditional personal loan, the interest will usually be fixed for the entire term.

Because of the fixed interest rate, you already know what it will eventually cost before taking out the car loan. In addition, the term and the monthly repayment terms will also be known in advance. Even before you have signed the loan contract, you already know exactly what to expect.

What can a pensioner borrow for a car loan?

Just like any other borrower, a pensioner will also have to calculate in advance whether a certain car loan can be paid back without any problems. You can calculate this so-called return payment capacity by adding up all fixed income and then deducting all costs from it. If you want to be absolutely certain that you will not be confronted with payment problems afterwards, you should also deduct a certain amount for unforeseen costs.

Today, more and more people live in our country as single people. However, this does not mean that, as a single person, you cannot bump into quite a few obstacles if you want to take out a car loan. Despite the fact that more than 1.6 million Belgians live as single people, borrowing money for, for example, financing a car often turns out to be a problem.

Positive discrimination for couples who borrow money

In a lot of cases there can even be talked of a form of positive discrimination in favor of couples who want to borrow money. After all, lenders give them an interesting discount when they take out a loan, for example for the purchase of a car. Lending money to a couple ensures a smaller financial risk, but also ensures that a single person can borrow more difficult money.

Take out a car loan as a single person

Many single people regularly wonder how much money they can borrow to, for example, finance a car. The answer to this question is unfortunately not always that simple. You can usually start from the rule of spending a maximum of 1/5 of your net income on a loan to finance a car. In practice, however, you can sometimes negotiate the maximum loan amount with a lender.

How much can a single person borrow?

If you as a single person want to calculate how much you can spend on the repayment of a car loan, you can use an online simulation (on the website of most lenders), among other things. However, if you want to make such a calculation yourself, you must take into account various factors that will influence the maximum amount of the loan, such as:

• the fixed income that you receive,
• the term of the car loan (the longer the term, the less you pay each month. Of course, you pay more interest over the entire car loan. A shorter term, on the other hand, means higher monthly repayments).
• the interest rate (this is linked to the term and the period in which you take out the car loan).

However, you can always negotiate with a lender to see what is possible in your personal situation.

Tips for taking out a car loan as a single person

• If you want to take out a car loan as a single person, you have to take into account that you need to have enough extra money to cover unforeseen expenses. Preferably, you put some money separately in a savings account with a favorable interest rate.
• In all cases, look for a car loan that matches your personal situation. There can, however, be significant differences between different loan forms, such as a personal loan and a revolving credit. To finance your car, as a single person, it is always wise to first be well informed of all possible options.
• Compare the different loan products from multiple providers to find the best deal. Moreover, many credit providers are only willing to make the effort to come up with the most advantageous rate, when another financial institution dares to take the risk.
• Good preparation and many comparisons will ultimately save you a lot of borrowing costs.
• Preferably, you start and end your search for a car loan at your own bank and always take the most favorable rate with you to a subsequent credit provider until a better proposal can no longer be made.
• Preferably start your search for a car loan online. You can therefore easily request customized quotes from a number of lenders.

Have a guarantee

As a single person, it will certainly work to your advantage if you have a certain guarantee when you apply for a car loan. You can think of:

• savings that can serve as collateral,
• an own home,
• other valuables,
• people who want to guarantee you.

In the first place it is important that you get the Car-Pass in the hands of the second-hand car that you want to buy. This pass can tell you a lot about the mileage history of the car. The data on the pass can therefore both support and knock down the sales story. This also applies to a number of other points that certainly require your attention if you want to buy a second-hand car

1. What should you look for when buying a second-hand car?

• bring a car expert yourself to assess the condition of a used car,
• check for signs of damage, an accident or hidden defects, for example spots with rust, a difference in the width of the seams and different paint colors. You also need to pay attention to the correct closing of the doors and windows and the wear on the top layer of the pedals,
• Always start the car once with a cold engine. This way, defects in the engine block or the battery come to light faster.

A test drive with the second-hand car will also provide you with a lot of information about the condition of the car. Along the way you should certainly pay attention to abnormal noises, a regular engine noise and the method of shifting to all gears. Checking the road holding is no superfluous luxury, just like checking the operation of the brakes, the lights, the direction indicators and the windscreen wipers.

A check of the car documents of the second-hand car is also necessary. But the maintenance book is also necessary to find out whether all planned maintenance has been carried out properly.

When checking car documents you view:

• the certificate with the test results,
• the Car-Pass with the mileage history,
• the new registration certificate to bring the car back into circulation.

The documents may not be older than two months.

2. Do you have to borrow money for a second-hand car?

Sometimes you really need a different car, but you lack sufficient resources to purchase it. Even if you are planning to buy a second-hand car, your finances may not be favorable (temporarily), so you will have to borrow money for this. In certain cases you just need a car, for example because you have to go to work or education at times when you cannot use public transport.

In other cases it is best to postpone the purchase of a second-hand car, for example if it is a second car, or because you have been bored with your current car. You could then pay more attention to your expenses and thus create additional financial leeway. By saving this money you will also receive a (albeit small) financial compensation which is of course at odds with the costs you have to make if you are going to borrow money for the purchase of a second-hand car.

3. How much money can you borrow?

Before you take out a loan, for the purchase of a second-hand car, it is good to know exactly how much money you can borrow. For example, if you already have one or more debts, a new loan can mean a considerable extra burden on your finances. After all, you can only spend the money that comes in every month once and you will also have to take into account the fixed costs that you incur again and again.

It can therefore vary from case to case how much money you can borrow to finance a second-hand car. Someone who has a good income and has no further outstanding debts will be able to take out a larger loan than a person whose finances look a bit less rosy and who also have one or more substantial loans. So you don’t have to get the loan that the same lender has also provided to your neighbor. After all, the personal and financial situation of your neighbors can be completely different from yours.

4. Assessment at the CKP

All loans and credits taken out in our country of at least a thousand euros and / or a term of three months or more are kept in a CKP database. The CKP also has a database of borrowers with an accrued payment arrears, or who have even entered the books as defaulters. By the way, these databases are not easily accessible to everyone and only certain governmental and financial institutions (with legal authority have access.) However, a check at the CKP can in all cases be considered time-consuming and usually takes several weeks.

Every loan and loan provider, including the loan provider for your second-hand car, is required by law to check with the CKP before any loan can be provided. Such a check is not only a protection for the lender, but also for all borrowers. After all, if you have built up too many debts, the chance of financial problems and non-payment increases. After a check at the CKP, a lender can therefore also refuse you a loan for the purchase of a second-hand car. In certain cases you will be offered a smaller loan, but often you can only borrow money again if your outstanding debts have been (partially) paid off again.

5. No more borrowing that is really necessary

The moment you decide to take out a loan to finance a second-hand car, you can easily be tempted to borrow more than is strictly necessary. For example, you could spend the extra money borrowed during a day of carefree shopping or on that hip phone that you would otherwise have to save for months for.

Borrowing more money than you need, you do indeed give more room for maneuver, but you will also incur additional borrowing costs. Furthermore, the periodic repayment terms are likely to be higher and / or the term of the loan will become longer. After all, you have committed to a larger loan and will therefore have to pay more interest. It may even be that if you borrow more than you need, to buy a second-hand car, you will end up tighter for a certain amount of time, you have to start living very economically or even deny yourself a number of things, like a night out.

Despite the widespread use of car sharing, there are still a lot of Italians who want to own a vehicle with four wheels.

To complete this purchase, many motorists choose to apply for a personal loan, so as to experience the financial commitment with greater confidence.

Car loans: get up to € 60,000

To apply for a loan, however, has as a basic requirement the presentation of a series of documents such as, for example, the pay slip that represents the assurance of a job position and, consequently, a sort of guarantee in returning the amount paid. But how do you get extra liquidity if you don’t have this document? Let’s see how to apply for a car loan without payroll and what are the solutions for 2019.

Considering the current socio-economic situation of our country, many banking and financial institutions have developed specific financing solutions for all those who cannot present a pay slip as a guarantee. These are interesting opportunities, which allow the group normally excluded from credit to access special solutions capable of providing the necessary budget to carry out their desires, such as the purchase of a car.

In all these cases, usually, to meet the needs of this specific customer segment, banks require the presence of the guarantor, that is, a person who presents certain securities and who is therefore deemed able to guarantee the repayment of the sum lent. Much also depends on the amount you wish to obtain: for large amounts, the institution can request additional guarantees such as the mortgage on a property that you own or the presence of any co-holders.

Moreover, among the roads that can be pursued in 2019 in this sense, there is the possibility of obtaining a loan that provides for the payment of installments through bills of exchange. If the applicant does not comply with the commitment made, the institute will be authorized to foreclose its assets for a value equal to that of the installments without the need for a judgment to exist.

Loan estimate of 10000 euros

Financial:	Simple Loan
Product:	Personal Loan
TAN Fixed:	4.25%
APR:	4.33%
Loan duration:	60 months
Amount Financed:	€ 10,000
Total due:	€ 11.117

Monthly installment € 185

Financial:	Loan
Product:	Credit
TAN Fixed:	6.01%
APR:	6.18%
Loan duration:	60 months
Amount Financed:	€ 10,000
Total due:	€ 11.602

Monthly installment € 193

Financial:	Loan
Product:	Loan
TAN Fixed:	6.50%
APR:	6.80%
Loan duration:	60 months
Amount Financed:	€ 10,000
Total due:	€ 11.764