Car loan

The car loan is often nothing more or less than a revolving credit. Sometimes special, more favorable conditions apply to a car loan, such as car financing.

For many Dutch people it is commonplace to borrow money for a car. Often through products advertised as a car loan. However, this is often no more than a revolving credit with a different name. A striking number of people finance cars with a car loan, also known as car financing.

Although borrowing money is not wise in itself, borrowing money for a car is often very debatable but sometimes understandable. If you depend on a safe means of transport for yourself or your children, you will still have to find a way to finance your car.

In addition to taking out a car loan or car financing, you can think of a private loan or an offer from your car salesman to pay off your car in installments or, for example, make use of promotions such as purchasing a car now and paying next year (deferred payment of a car). Same interest as revolving credit.

Advantages and disadvantages car loan

Pros
  • The goal is clear, financing a car is common and a car loan is therefore commonplace. Interest rates can be somewhat more attractive as a result.
  • Same interest as revolving credit.
Negatives
  • Financing your car salesman can be more interesting.
  • You do not have direct collateral for the loan, your car depreciates too quickly.

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