Car Loan Rates: where and how to get the best?

Finding the best car loan rate is a first step, but you still need to make sure you get a deal in principle. We will go around the question, in particular by soliciting our credit comparator. This article therefore has a double objective: to identify the best car loan, and to obtain an immediate favorable opinion online.

Auto loan rates: who offers the best?

Auto loan rates: who offers the best?

There are several players capable of offering a car loan rate:

  • Credit organizations 
  • Dealers
  • A bank or specialist insurer
  • Certain resellers 

Car loan rate: always in fixed APR

The rate of a car loan is always expressed in fixed APR. The overall effective annual rate is a benchmark for consumer credit. Any car loan simulation is therefore based on this rate. It includes both the interest on the loan and any administrative costs, making it possible to calculate – once the repayment period has been fixed – the real cost of the loan. Our auto credit comparator is only based on the fixed APR to rank the best offers.

Good to know: the car loan is a credit with proof. This usually means delivering the vehicle purchase order to the lender. The rates are on the other hand more attractive than those of a credit without proof.

Car loan rates comparison

Car loan rates comparison

Our auto loan rate comparison allows you to compete with the best organizations offering online car credit. We are therefore going to flat out the best car loan rates recorded by our tool, before comparing them with those of classic Renault credit, that of two large banks and a specialist insurer. Our comparison is based on a new car loan simulation up to 15,000 USD, over 60 months (5 years).

Online car loan rates: the barometer

We have just seen: the best car loan is usually owned by the credit agencies. Our last statement of rates (2019) of the new car loan 15,000 USD allows us to see the offers in force according to the chosen repayment period.

For a new car loan of € 15,000 Best credit rates car
Over 12 months 1% to 1.50%
Over 24 months 1.50% to 2%
Over 36 months 2.50% to 3%
Over 48 months 2.80% to 3.20%
Over 60 months 3% to 3.50%
72 months 3.80% to 4%
84 months 4% to 5%

On the other hand, it is necessary to carry out a car loan simulation on our comparator, to try to obtain a cheap car loan. Rates are constantly changing, and promotions are not uncommon in the field. It is always interesting to find out by carrying out a first simulation without obligation.

Car credit: banks are late

Banks are lagging behind on the issue of auto loan rates. Not only are the rates on average higher than those of specialists, but above all you generally have to be a client to benefit from them. Each time we carried out a car loan comparison, the banks lagged behind specialist organizations (Viloan car credit, Astro Finance, Bankate car credit, etc.). This does not prevent some better-off and more stable customers from obtaining an advantageous car loan rate.

Dealers are betting on LOA, but why?

Dealers sell many new cars with LOA solutions (rental with option to buy). The reason is simple: the car loan rate via LOA is never displayed. LOA is associated with mostly acceptable monthly payments. In reality, many individuals for whom conventional auto credit would be refused are offered this solution. Remember that this is a rental contract, including a kilometer package and any additional guarantees (maintenance included, etc.). At the end of the contract, it is possible to buy the car at the cost initially fixed, or to return it. Please note that a non-conforming return (deterioration, technical problem) can lead to significant penalties.

Get the auto loan rate in five minutes flat

Get the auto loan rate in five minutes flat

Our credit comparator provides the best rate for each type of consumer credit. Most of the time this is the best offer. It is however always possible, once the contract without engagement obtained, to canvass other actors. Here’s how to make sure you get the best rate for your car loan:

  1. Perform a credit simulation online on our comparator by indicating “new car loan (-2 years)” or “used car loan (+ 2 years)”, the amount of the targeted vehicle and the desired repayment duration.
  2. Our questionnaire is completed in four minutes. It has four simple steps (identity, address, location, budget).
  3. Once the non-binding form has been completed, our tool lists the best auto loan rates.
  4. Our system immediately queries the best credit agency. In the event of an unfavorable response (acceptability <5%), it is possible to interrogate the second and the third in one click. So many chances to get a funding agreement.
  5. A confirmation is sent by email within 24 hours when funding is possible. It is accompanied by a non-binding credit contract.
  6. Based on the best auto loan rate accepted, it is much simpler to canvass the dealer, or even his banker.

Remember that it usually takes to provide a good vehicle control for a car loan online or from his bank. In the case of a credit accepted at the best rate, it is also important that the mention “purchase on credit” be present on the order form. In this case, the credit will be canceled if the car is not delivered. The sale will also be canceled when the borrower decides to retract within the statutory period (see Law).