Do you want to change vehicles? On the occasion of the Paris Motor Show, Good Bank looked into the possibilities of financing your future car. Two solutions are available to you: …
Do you want to change vehicles? On the occasion of the Paris Motor Show, Good Bank looked into the possibilities of financing your future car. Two solutions are available to you: finance your automobile with a consumer credit or encourage Rental with Option to Purchase (or LOA). Beyond the financial aspect, these are two different lifestyles. Focus.
LOA or consumer credit: two different uses
With consumer credit, the road to freedom.
Auto credit means that you finance the purchase of a vehicle by taking out a loan. Your only obligation is to repay this consumer credit each month. You become the owner of your car and therefore you can use it as you wish, no fear about the number of kilometers passed or return of the vehicle.
Only constraint: you have a vehicle up to your financing capacity. But you remain free to sell your car at any time or keep it as long as you want ! Please note, in the event of resale, the value of your vehicle may be low compared to what you have invested.
The LOA, a clear path…
With the LOA, there are other specificities: you agree to pay monthly rent over a defined period and with a mileage not to be exceeded. In return, you have a vehicle available during this period. Vehicle that you must return at the end of this period (or buy back at the rate defined before the contract).
But you are enjoying a vehicle that you might not have been able to afford with a consumer credit because it costs too much, so this is the insurance of the latest innovations in the automotive industry at your fingertips.
Consumer credit or LOA, you see, the 2 solutions correspond to different expectations and different uses, do not hesitate to consult our explanatory notice for more information.
LOA, a trend solution
Today, LOA represents the most important solution in vehicle financing, and it continues to progress. According to the ASF, LOA financing has increased by 34.9% since the start of the year (figures published in July 2015), while at the same time, conventional credit has decreased by 5.2%.
“ This trend is also indicative of a change in mentality: owning a car no longer has the same meaning, it has become less of an end in itself. Future buyers ask themselves the question of equipment, immediate profit as much as long-term use, they need a global vision and comparison, and not only at the financial level, “explains Myla Gamo, Communication and Studies Director of Borrowing.
With Good Bank, compare car loans for free. LOA or consumer credit: we will negotiate and find the solution that best suits your needs!