Do you absolutely need a car loan following a vehicle breakdown, and your financial situation does not allow you to take out a new loan? Do you want to reduce your monthly repayment? The auto loan repurchase offers you an attractive alternative to regain purchasing power. See http://www.coopermaps.com/2019/12/20/30000-car-loan-with-bad-credit-see-the-best-car-loan-companies-for-bad-credit/ for the scoop
What is credit repurchase?
The repurchase of credit (also called grouping of credits ) can be requested by all the public, whatever the age or the income generated. It is particularly suitable for people already involved in several consumer loans, and who wish to find better financial legibility.
Auto credit, home loan, or other consumer loan: all your monthly payments, your repayment schedules can be grouped into a single monthly payment, with a single rate.
Combine your loans, including a car loan: which loans are eligible?
Once a person has taken out at least two credits whose repayment is in progress, it is possible to consider the grouping of credits. It is even possible to combine only one loan by including additional cash in the loan buyout in order to finance a new project. Thanks to the repurchase of credit, all the credits in progress are settled and a new single loan regrouping all the credits of the borrower is signed.
A car loan can be the subject of a grouping of loans with the following loans:
- another car loan or LOA (except the first year in which the vehicle is bought back according to the provisions of the LOA contract);
- a home loan, as part of a mortgage loan buyout;
- one or more consumer credits (personal loan, earmarked, revolving or revolving credit);
- a bank overdraft, considered to be a consumer credit;
- additional cash.
It is also possible to include debts in the repurchase of credit:
- rental delays;
- unpaid invoices (electricity, internet, water, gas …);
- tax delays;
- co-ownership charges;
- family debts or amounts owed to private lenders;
- ln employer loan;
- bailiff debts.
The advantages of buying car credit
The repurchase of car credit opens new perspectives for the purchase of your vehicle . By combining your credits, you benefit from the following advantages:
- a more advantageous rate : depending on the evolution of auto credit rates, combining your credits can allow you to save on all of your repayments;
- lower monthly payments : buying back credits makes it possible to dilute your monthly payments over time, with an extended term;
- better financial visibility : with a single monthly payment, you can quickly identify your new borrowing capacity;
- lower cost of insurance : credit consolidation makes it possible to drastically reduce a non-negligible item of expenditure.
Thanks to this financial relief, your car loan project can become more ambitious. You have a higher monthly borrowing capacity, which allows you to look at more high-end vehicles. With your debt ratio down, you have a better chance of having your loan application accepted.
Can you take out a credit buyout with auto credit?
Requesting the repurchase of your current loans can be an optimal solution to integrate your vehicle purchase directly into the loan group. In fact, the repurchase of credits makes it possible, depending on the case, to include the cash necessary for the acquisition of the vehicle. There are several advantages to this mechanism:
- There is no creation of a new monthly payment: the purchase of a vehicle is part of the credit repurchase;
- All your loans are put together and subject to a single rate.
Which establishments offer credit repurchase?
The auto loan redemption request can be completed at any banking establishment, including the one where you have your main account. To compare the best offers in force, we offer a free credit buyback simulator.
For a grouping of credits , it is also common to call on a credit broker like Urizen (also called IOB ) to obtain the most competitive rate. Brokerage fees may be required depending on the institution; Urizen brokerage services are free for borrowers.