Should we necessarily simulate a car loan before committing?

The auto credit simulation is comparable to any consumer credit simulation. This is why in terms of car credit, it is good to reason in TEG (Global Effective Rate) which includes ancillary costs (insurance, and fees).

 This is the TAEG rate to use for any comparison so as not to have any disillusion. In addition, it is good to consider the repayment period of the loan. The longer the repayment period, the more expensive you will get back your credit.

For all these different reasons, it is advisable to carry out a simulation of auto credit before you engage blindly.

Multiple simulation tools exist today on the Internet and all present in a similar way.

The information to provide during the simulation is as follows:
– is it the purchase of a new or used vehicle
– what is the amount you want to borrow
– what is the desired monthly payment or the desired repayment period
– when do you plan to buy your vehicle
– the brand, the model and more and more nowadays, the type of fuel

In addition to your vehicle purchase project , you will need to give information about your financial situation such as your family situation, your income, if you are a tenant or owner, …

Once all this information is compiled, the simulator will give you an estimate of your car loan and you will be able to go to any credit agency and present your project with concrete data.

For example, the credit auto credit simulation tool calculates a monthly payment of 293.49 euros if I want to borrow 15000 euros over 60 months. Based on this first result, I can change the duration and amount of the loan if the monthly payment seems too high or if I think I can afford to pay more because my income allow.