Entering a car loan to finance the purchase of a car is a common way of being able to afford the car of your dreams. But what about the financial package for the purchase of several cars at the same time?
Is it possible to do it with one funding? Or do we have to contract several loans? What are the solutions available to achieve this? Here are some answers to help you find your way.
What need to acquire several vehicles at once?
It is true that we do not necessarily think but the purchase of vehicles may be necessary in some cases. Why ?
For example, a company executive may need several company cars to cover business trips for sales agents or technicians. In the same way, a rental company may consider a group purchase of vehicles to renew its fleet. Also, it is important to think about a suitable financial package to get the desired loan.
Buying a vehicle with a car loan
After verifying the repayment capacity and therefore the solvency of the borrower’s project, the credit institution is required at the time of subscription to establish a contract. The terms of the loan must specify in detail the terms and conditions relating to the loan granted: the total amount, the interest rate, the method of repayment and the type of insurance chosen must be stipulated in the clauses of the contract.
These criteria being moreover determined by the price of the vehicle and its other characteristics (seniority of the vehicle in the case of an occasional sale for example), the lending organization will only lend a loan for the purchase of a single vehicle.
And this to facilitate the establishment of the contract. However, there are different financing solutions to adapt according to the needs, constraints and especially the repayment capacity of each .
Consumer credit says “affected”
The purchase of a new or used vehicle is often subject to a consumer credit. Granted by a credit institution or a bank, this type of financing is said to be “allocated” when it is exclusively related to the desired asset.
This means in other words that it is intended for the specific purchase of a good (car) or a service (trip) whose financing is released at the time of purchase and upon presentation of the invoice. This type of funding is granted for a minimum of three months. Its total amount must be more than € 200 and not exceed € 75,000.
In the particular case of the acquisition of a vehicle-type movable property, this credit or auto credit therefore allows the purchase of only one vehicle at a time for the reasons mentioned above. The amount, duration and repayment terms are determined in advance.
To finalize the loan agreement, the lender must establish two contracts: a sales contract and a loan agreement. In this case, we are talking about depreciable credit. For the purchase of a car, the total amount of the loan must be between € 500 and € 60,000. Its duration must be greater than 12 months and the minimum number of monthly payments greater than 12.
Unrestricted consumer credit
If car credit is not possible for the group purchase of vehicles, it is however possible to contract an unrestricted consumer credit to do so. This solution does not require proof of use of funds.
It is therefore suitable for the purchase of several cars at the same time since it allows the borrower to freely use the funds made available to him. If this credit is more flexible than the car loan, its repayment is not negotiable if the property acquired is not delivered or if it is defective.
As it is not linked to any sales contract, no recourse is possible for a possible claim.
The revolving credit
The revolving credit is an unallocated credit that offers some flexibility: the lender makes available to the borrower an authorized capital according to its financial situation. The borrower has the possibility to use this authorized capital as he chooses in whole or in part.
Also called revolving credit ), this credit is said to be flexible because it makes it possible to anticipate one-off needs. The amounts granted can be made available to the borrower by transfer or by means of a dedicated card.
The personal loan
The personal loan is a form of unallocated credit known as depreciable. This means that its repayment is done gradually over its entire duration according to conditions defined beforehand. This type of loan is available when the borrower knows in advance the exact amount of money to be borrowed.
In the case of a group purchase of vehicles, it is therefore possible to use it provided that it has correctly quantified the total amount to be borrowed. Calculated on the repayment capacity of the borrower, this credit must be repaid monthly over a fixed term and at a fixed interest rate. Granted for a period of more than 3 months, the amount of the personal loan can not exceed 75 000 €.
To accumulate several auto credits for the group purchase of vehicles?
If the contracting of a car loan does not allow the purchase of several vehicles at the same time, it is however possible to accumulate several auto credits to do so.
Indeed, the borrower can contract as many auto loans as he wants from the moment his ability to repay and his debt ratio allow it. In any case, it is the lending organization that decides whether or not to grant the loan (s).
Choose a credit adapted to your repayment capabilities
Regardless of the type of financing chosen, prospective buyers are strongly advised to take into account their repayment capacity and to ensure that they do not exceed the debt ratio (33% of total income) before contracting any credit.