As a specialist in consumer credit, Bank offers the entire range of consumer credit. Bank car loan is one of them. In this article, we will detail the characteristics of the product and compare it to the auto credit of competitors.
Bank car loan in details
What does it finance?
As its name suggests, the Bank car loan is used to finance the purchase of a car, whether new or used . More broadly, it makes it possible to finance any vehicle purchase: scooter, motorcycle, caravan, motorhome. In fact, for the sake of simplification, credit organizations do not generally offer motorhome or motorbike credit in their simulators. It is therefore necessary to choose the wording “car credit” for all these types of financing.
The characteristics of Bank car credit?
It allows to :
- borrow from $ 3,000 to $ 50,000
- repay over a period of 12 to 84 months
- no contribution obligation
- no processing fees for the Bank car loan
- possibility to take monthly breaks
Optional borrower insurance
Bank auto loan borrower insurance is optional. It protects the borrower in the event of a life accident :
- Job Loss
- total incapacity for work
- total and irreversible loss of autonomy
- failure to collect support payments
This latter guarantee is a specific feature of Bank borrower insurance, which sets it apart from its competitors. If one of these events occurs during the repayment of the Bank car loan, the borrower would no longer have to pay these installments, the remaining monthly payments would be covered by insurance.
This borrower insurance has of course a cost which will be added monthly to the monthly payment of the Bank car loan. Please note that borrower insurance should not be confused with auto insurance. The latter insures the vehicle as well as the driver against material and bodily injury.
Bank car credit in the face of competition
Auto loan = cheapest credit
Credit offers are mostly more attractive in the context of a car loan . In fact, the nature of the project being clearly defined, the financial institution considers that the risk of default is lower. He can therefore agree to offer a lower APR. The car loan rate will be even lower if the vehicle is new . In the worst case, the lender will be able to seize the vehicle in the event of a characterized non-repayment and thus recover part of the amount loaned. Also note that justifying the purchase of a vehicle also regularly gives access to a longer reimbursement period.
Bank auto credit is no default to this rule. Here for comparison, on 05/21/2018, the APR offered by Bank depending on the nature of the project to be financed for a loan of $ 12,000 over a repayment period of 60 months.
- new car loan: 3.70%
- used car credit: 3.75%
- personal loan: 3.85%
This is an example, the differences are generally much more marked.
The importance of comparing
First of all, it should be borne in mind that credit offers evolve regularly , whether from Bank or its competitors. It is therefore essential to compare the offers at an instant T in order to obtain the best credit. As such, we offer a comparator that ranks the main offers on the market from best to worst depending on the borrower’s needs. The benchmark for ranking offers is the APR . It corresponds to the interest rate on the credit including all costs incurred for the loan excluding borrower insurance costs. On the basis of the APR, the credit offers are therefore comparable from one organization to another.
Like Good Finance in mass distribution, Bank is positioned on low prices . Bank is one of the organizations offering the lowest rates on the market, regardless of the nature of the project.
Comparison of a new car loan
As of May 21, here are the top 3 offers from our auto credit comparator for the purchase of a new vehicle with a borrowed amount of $ 15,000 over a repayment period of 60 months:
Best offer: APR = 3.19% monthly payment: $ 270.49 credit cost: $ 1,229.40
Bank auto editor: APR = 3.70% monthly payment: $ 273.75 credit cost: $ 1,425.00
3rd best offer: APR = 4.99% monthly payment: $ 282.24 cost of credit: $ 1,934.40
In this example, Good Finance Bank car credit is not the best offer, although it ranks second. The savings made on the cost of credit are far from negligible from one offer to another. It is therefore important to compare before subscribing.
Comparison of a used car loan
On the same principle, here is an illustration for a used car loan of $ 8,000 over a repayment period of 36 months
Bank car loan: APR = 2.30% monthly payment: $ 230.08 cost of credit: $ 282.88
2nd best offer: APR = 3.10% monthly payment: $ 232.85 credit cost: $ 382.60
3rd best offer: APR = 3.30% monthly payment: $ 233.54 cost of credit: $ 407.44
As of May 21, 2018, Bank is the cheapest credit institution for this simulation.
The Bank opinions left by customers also reflect this pricing policy.
How to take out a Bank car loan
Where to take out a Bank car loan?
There are several methods for taking out a Bank car loan. In our opinion, online subscription remains the simplest method . It makes it easier to compare the offers of Bank with that of its competitors. It also allows you to collect all the information needed to fill out the credit application as well as all the supporting documents. In addition, an answer in principle will be given immediately upon completion of the credit request duly completed.