Car buyers beware: new car discounts at peak – car loan rates on low point

Up to 46 percent discount on new cars – never was a new car in the last 10 years cheaper than in August and September 2017. This shows the car discount index of the University of Duisburg-Essen. At the same time, the annual interest rates for car loans are at historically low levels. Never has a vehicle financed more cheaply in the last 4 years than currently. According to information from the Smava credit portal, the average interest rate on car loans has been below 3 percent since March – an average of 2.97 percent in August and September. Over the same period, demand for Online Zuma car loans increased 24 percent from the previous month. Despite the overall very favorable conditions car buyers should not be dazzled: The high discounts are not forever and not for everyone. Moreover, not every car loan is as cheap as it is advertised.

Highest discounts on the VW Passat and Skoda Octavia

According to information from the Car Center of the University of Duisburg-Essen, car buyers could save based on the new car list price and basic models of the Skoda Octavia and VW Passat Trendline with 46 percent the most. The Skoda cost instead of 17,450 euros only 9,386 euros. The price of the Passat fell from 26,750 euros to 14,486 euros. The lowest discount was the Mazda CX-5 Prime Line. Instead of 24,990 euros, this vehicle cost 19,927 euros. That’s a 20 percent discount.

Discounts will fall by 2018 at the latest

The high discounts are possible because many car brands offer scrapping and environmental premiums for old diesel vehicles in addition to their normal discount campaigns. As a result, the total discounts rose to 46 percent. From the high discounts benefit so first and foremost owners of diesel cars. The conditions on which the premiums are linked vary from manufacturer to manufacturer. There is only one thing in common: the premiums are limited in time. They end after information of the car newspaper and Finanztip at the latest on 31.12.2017. After that, the new car discounts will fall again.

Demand for car loans increased by 24 percent

According to information from the Smava credit portal, interest in car loans increased by an average of 24 percent in August and September compared to the period between January and July 2017. The increase can also be attributed to the historically low level of interest rates. Those who completed a car loan four years ago paid on average an effective annual interest rate of 4.75 percent. In August and September 2017 the average was 2.97 percent. With a good credit rating, even interest rates of less than 2 percent are realistic. The portal assumes that interest rates on auto loans will only fluctuate slightly over the coming months.

Bank or dealer financing?

Car dealers often advertise with even lower interest rates. Therefore, for the car buyer, the question arises whether financing through the dealer is not the cheaper option than going to the bank. It should be remembered that this is a mixed costing. The interest may be cheaper at the dealer than at banks, but the vehicle can be more expensive than another dealer. It is therefore about the total cost, so the costs incurred for the car and the loan in total. It is clear that the variant of bank financing offers more choice: It can be used both the cheapest purchase offer and loan offer. The latter can be found with the help of loan portals, which at the same time compare loan offers from several banks and thus give a larger overview than a single bank.

Installment Loan, Private Leasing, Balloon Loan or Three Way Loan?

An installment loan is usually not only the most calculable way to finance a car but often the cheapest. Unlike the other forms of financing, installment loans are transparent from the start. The monthly rate can be adjusted to the individual options over the term. A high final payment does not exist, unlike the other loans. In addition, the vehicle belongs to the buyer after the last installment.

Further, reduced by cash payment purchase price

A loan gives even those car buyers, who do not have enough liquid funds, the chance to pay for the new car in cash. This does not necessarily mean that the buyer has to go to the dealership with a full briefcase. The point is that the car is paid for in full with one payment. As a result, experience has shown that the purchase price can be further reduced. The amount of the additional discount is a matter of negotiation. With the current low interest rates, it is likely that the cost of a loan will be at least offset by the additionally negotiated discount.

Where to ask for a loan to pay debts?

Now that you know that a loan is a solution to your financial problems comes one of the most frequent questions, where can you ask for a loan to pay debts?

Financial institutions are probably the most demanded option to apply for a loan; However, it is important to open your eyes to new scenarios and look beyond, you could find other interesting and beneficial possibilities for you.

Remember that not always the best-known option is the best, the best decisions are always those that have research and comparison as sustenance.

If you are also wondering, where can I get a loan to pay my debts? Here we are going to tell you.

In the country there are endless financial options that can offer you loans and credit products, but in order to choose the best one and the one that best suits you, first you must know them all.

Fortunately, in our country there is a large number of companies that can offer you a personal loan so that you can settle your financial commitments if you have borrowed.

Financial Institutions: Banks are those institutions that are dedicated to attracting resources from their public in order to propose different investment options to the sectors that make up the country’s economy.

When you go with a financial advisor and you mention “I need a loan to pay debts, ” what he does is take other people’s money to invest it with you.

This is only part of the chain. Within this area, there are multiple options that you can consider to apply for a personal loan to pay debts.

Sofom ER: Unlike banks, these entities grant loans, leases and factorajes through the financial resources generated by the patrimonial links with other Credit Institutions or Holding Companies of Financial Groups.

Within these we can also find the name of some banks that you probably already know, if you want to know more information about the Sofom ER to obtain a credit, consult the link.

Infonacot: this is an institution that seeks and promotes the integral development and growth of the family assets of workers, that is, through this institution you can obtain financing and credits to acquire goods, as well as cover the payment of services.

To apply for a credit with them, you must bear in mind that the money could not be used on a well-deserved vacation with your children.

Retirement Fund Managers: better known as AFORES, these administrators are financial institutions that are responsible for saving and managing all economic contributions made by workers, employers and the government in order to create savings for retirement.

Previously these accounts were very common, however, now there are many more ways to create more and better funds for retirement.

Cooperative Savings and Loan Societies: these types of institutions, even when they carry out savings and loan operations with their partners, do not have a profit motive and recognize that they are not a financial intermediary.

They have a fund to avoid financial problems and among the most famous names is “Caja Popular”.

Credit Institutions: professionally, these institutions deal with the financial transactions of people.

If you question how I can get a loan to pay my debts and you are worried that by checking the credit bureau you can reject your application, you can go to one of them.

Credifiel is a credit institution that offers you urgent loans to pay debts and advises you from the first moment.

A credit with us is synonymous with a good investment.

Financial cleanup : Credifiel has a program called “financial consolidation” by which those people who have contracted a loan with another institution and whose conditions are not ideal, can improve.

With this strategy, Credifiel helps its clients to consolidate the payment of their debt with conditions that suit their economy with lower interests and better conditions than those of competitors.

The CONDUSEF, on its web page, has a consultation tool in which you can know the status of the 2 thousand 986 financial institutions that are within the 25 sectors.

This tool is better known as “Bureau of Financial Institutions”, remember that the CONDUSEF is responsible for protecting the financial rights of individuals and for this reason all institutions that provide this type of product or service must be registered with this institution.

If you want to know some specific data of an institution that is registered in the Bureau of Financial Institutions , you can do it from this link.

After reviewing this list, it is also necessary to mention where you should not request a loan, since it could be a fraud that puts your finances at risk.

Those companies that promise to be “credit repair” and that help you negotiate your debts should never enter your list of options.

One of the promises that usually accompany them is that they will grant you discounts so that your debt becomes lower, however, this is a trap.

Also keep in mind that a financial institution will never ask you to pay money in exchange for the approval of a loan.

Generally, this is a fraud in which many people fall, but being informed is always the best weapon.

Remember that only the institutions with whom you have debt can offer you discounts and ways to negotiate your payments, although others like Credifiel that have agreements to make your debt somewhat less burdensome.

It is important to note that each institution that can provide loans to pay debts in Mexico has different characteristics.

We recommend paying attention to the small details since there may be the difference between each of them.

In addition, it is important that you first assess your needs, this will help you choose the best option according to interest rates and payment terms offered.

In Credifiel all our credits are especially for government workers with discounts via payroll . That is why it is a profitable option that helps you reduce the amount of interest and, in addition, to choose the frequency of payment that suits you best.

To grow your accounts, lean on someone who cares about you.