Owning a car generates some benefits, including the freedom to go where you want, at any time. You will no longer be dependent on public transport. The market offers, today, a multitude of ranges of cars.
To acquire the model of your choice, an individual has 2 solutions: pay cash or make a car loan. However, as not everyone is in possession of enough money to finance such a project, the use of car loans is a more favorable option in many situations.
Auto loan, what is it?
The car loan is a type of loan belonging to the category of consumer credit. It is used to finance the purchase of a new or used car. Depending on your financial situation, you can request financing for the entire purchase.
If you have a few savings that can finance part of the transaction, you have the choice to ask the lender for only the amount you are missing. For any credit application, a voucher must be provided. It can be a purchase order or a sales certificate.
Not having enough money to buy a car is a reason to turn to auto loans. However, people who do not have enough money to finance their car purchase are not the only ones interested in this type of credit. Some people simply want to avoid spending a large budget in one go, at the risk of not being able to cope with any unforeseen events.
Married car auto credit: the specifics
After your wedding, you plan to buy a car. However, you have already spent all your savings for the preparation of the happy event. In such a context, the use of a car loan is a good choice. Buying a car loan as a couple is a decision that should not be taken lightly. Indeed, this means that both parties are jointly linked to the debt.
Even if the groom alone (or the bride alone) signs with the bank to take out a loan in his name, the other party will be jointly and severally associated with the debt, if the purchase of the vehicle is not unreasonable and the property purchased actually meets the needs of the household.
However, the financial institution often requires written agreement from the spouse of the loan applicant. Sometimes the contract is made with the signature of 2 co-borrowers.
Choosing a car loan for married couples is one way to increase your borrowing capacity. This is because the bank considers all spouses’ income. However, it also takes into account the household’s debt ratio, by checking current credits and their natures.
Buying a car loan with a couple allows you to buy a car that will be used for different occasions, such as going to work, traveling on vacation, transporting children to school, shopping, hobbies, etc.
Factors to consider before getting a car loan for a married couple
To enjoy maximum benefits on a car loan, it is important to choose the financial institution to trust. You can take out this type of loan from different types of organizations, such as: traditional banks, online banks, dealers and most insurance companies.
Online comparators or simulators are now available free of charge. These tools help you find the best addresses for a car loan on favorable terms. You can play your proximity and trust with your usual bank to get a car loan in a short time. With this option, you will enjoy a quality service (advice and support in all the steps). However, credit rates are often less advantageous to conventional banks.
For more attractive conditions, it is possible to move to online banks. In a few clicks, you can inquire about offers from several brands. Some institutions give you a fee, while others guarantee very competitive rates.
However, one should be wary of offers that seem fanciful, that is to say, prices too low. It is better to find serious credit agencies. Before signing a contract, it is also advisable to check the clauses it contains. You can get help from an experienced and reliable broker.
With regard to car loans for married couples, it is essential to know all of its principles, such as the fact that in case of divorce, the lending institution can approach one or the other for require repayment of monthly payments.
In such a situation, early repayment proves to be the best alternative to avoid any complication. The matrimonial regime you have chosen in your marriage contract can define the sharing of the amount of your car loan remaining to be repaid.