Do you dream of a new, delicious car and look with skeptical eyes at the dizzying price? Before you dream further, it’s a good idea to think about how big a car loan you can get.
In principle, you can borrow up to several millions if you want a large car loan. However, it depends on you as the borrower how much money the bank will lend you. The size of your car loan further depends on several different factors.
For example, your personal finances, what kind of car you want to buy and the age of the car are all factors that define how big a loan you can and should get.
Link between personal finance and car loans
Your personal finances can have an impact on how much money you can be allowed to borrow. It depends on the credit rating that the bank makes of you in connection with your car loan.
If the bank considers that you have a sound private economy, they will be more likely to give you a large car loan. The assessment is based, on the whole, on the chance of the bank getting its money back. Another thing that can help you further is if you have the money to be able to pay the payment of the car that you would like to buy.
Big Loan – Big Payout?
It fluctuates how big a payment you have to be able to pay. A rule of thumb says you should be able to pay 20% of the purchase price, that is, the total price of the car. This means that if the car you want to buy costs USD 100,000, then you must have USD 20,000 available before you take out the loan.
A savings earmarked for car purchases and loans shows the bank that you are a responsible debtor and that you are more likely to be able to repay the loan. Many banks and especially many auto dealers require that you have the capital to pay out before they will negotiate for large car loans.
Possibility of large car loan without payout?
There are many creditors who will offer you large car loans without disbursement, but as the same loan is not provided to the loan provider, there may be other conditions that you need to be aware of.
For example, there may be various fees and expenses associated with large car loans. In that regard, it may be helpful to have a look at the OPP, which shows you how expensive the loan will be for you. Most loan providers can offer you a loan of up to USD 300,000 if they consider that your finances are suitable for this.
Big car loan tips
Basically, the banks are willing to give you a bigger car loan if your plan is to get you a new and thus expensive car. This has something to do with the impairment of the car.
A new car decreases in value more slowly than a used car. That way, the bank has a security in the car if it should end up that you cannot repay the loan. You should at least be able to settle the debt in the car as quickly as the impairment of the car.
The loss of value depends on two factors, the age of the car and the number of kilometers the car has driven. On average, a car loses 16-25% in value per year in normal use. Normal usage means you are driving between 15,000 and 20,000 km. per year. For example, if you buy a car for USD 300,000 and drive it normally, then the value of the car after 10 years will be assessed at USD 32,212.75.
If, on the other hand, you want to buy a used car for less than USD 50,000, it can sometimes be better to take out a consumer loan or quick loan. In the event that you are in urgent need of a car, consumer loans or quick loans may be advantageous as they are quick to apply.
How To Get The Largest Car Loan Cheapest
Before you fall head over heels in a new shiny car, it’s a good idea to find out how big a car loan you can actually get. That being said, there are many different providers and banks that can offer different loans with different interest rates.
It can be a jungle to find around and it can be hard to figure out where to get the biggest car loan cheapest. Therefore, here you will find a guide to large car loans and what different options you have.