Borrowing for a car has never been so cheap. With a rate of 0.65 per cent , TinkerBank once again sets itself up as a price breaker in the market. It must be a new car or a second-hand car that is younger than two years. The low rate also applies to those who buy a motorbike, a mobile home, a caravan or an electric bicycle.
Low-rate rate ‘car loan’
In order to enjoy this low rate, you must repay the loan within 60 months at TinkerBank. Other, slightly more expensive, banks and lenders will give you more time. Some even up to 120 (!) Months. By extending the term of the loan you pay a smaller amount per month. However, be aware that you will have paid more interest at the end of the journey.
Loan on installment
Although other forms of financing are possible nowadays, such as a private lease, for example, the ‘ car loan ‘ is by definition an installment loan or a personal loan, but with a specific purpose.
A personal loan has the following properties. Whether these are advantages or disadvantages depends on your own situation and wishes.
- Clearly. Every month you pay the same amount to the lender. This amount consists of a part of interest and a part of capital.
- Intermediate or early repayment can be done by paying a fine. This is a fee to the provider because that interest goes wrong.
- You can not re-enter repaid amounts.
- When applying for the loan, you also agree on the term.
Apply for your loan online
Nowadays you do not have to go to the bank or to the Brussels Motor Show in Brussels to apply for your loan and enjoy these salon conditions. You can do this just as well online to save time. In this way, you also get all the information you need in a short time, because even though borrowing money mainly costs money in the form of interest, you should do a larger comparison exercise.
The longer the term of a loan, the more interest you will eventually pay. This is ultimately a logical mechanism. But what about the extra costs associated with a (car credit)? In practice, it turns out that lenders link the condition of a comprehensive insurance policy to your loan.
An omnium insurance is not compulsory insurance. A BA car insurance is and does serve to cover civil liability when using the car or electric bicycle on public roads. An omnium insurance is therefore one additional insurance on the statutory car insurance, which gives you more protection, such as covering damage to your own car, even by your own actions, damage caused by attempted burglary, and so on. Since the car is the guarantor of the loan, creditors expect you to take out an omnium.
However, it is crazy to pay the omnium insurance costs for 9 years for the purchase price of the car. In other words, you have to look for a car-insurance policy whose premium adjusts to the age of the car from the first year. So your insurance premium will systematically decrease.