It is one of the more expensive purchases you can make, a new or different car. But still the question keeps coming up: How much can I borrow for a car. It depends on a number of conditions that are set in what kind of car you can drive around later. Will it be a Porsche, or should you settle for a cheap second-hand car.
I will try to explain how you can calculate what loan you could claim. But also how much you have to pay off each month and what the interest is at the moment.
How much can I borrow for a car
Of course you have already set up a treasure hunt to see which car suits you and which could also fit your budget somewhat. If you have an average salary, it is still possible to purchase an expensive car. This then not only depends on your income, but perhaps more importantly, the fixed costs that you spend every month. This is because sharp attention is paid. Intended to protect you from borrowing money where you might encounter problems when paying off.
Suppose you have an income of 1900 euros net per month and you live in a cheap house. You have no children and no loans other than running a mortgage. Then it is best to request a substantial amount, which is also approved. An amount of 40,000 euros might just be possible.
Check for yourself what your fixed costs are. Also a credit card, revolving credit that you do not use, possibility of being red at the bank, mail order company. It is all taken as debts. But also alimony, whether this is child or partner alimony, both are included in your application.
Where to borrow
In general it is not a good idea to take out the financing of your car at the dealer where you buy the car. This may seem handy, but often you pay a lot higher interest than if you yourself look for a revolving credit or a personal loan. When you have seen a nice car, do not immediately decide to take out a loan there. First compare yourself and request a free quote so that you can compare different offers.
Calculate your loan yourself
If you want to fill in your details yourself to see what amount you qualify for, you will find here on this website a number of providers that offer a handy calculation tool. If the result of this calculation proves to be satisfactory to you, you can choose to request a quote.
This will then be sent to you by email and you can study it at your leisure. This offer also clearly states how much interest you are going to pay and what the total amount of your repayment is per month. If you decide after receiving the quote, you do not need to take any further action, it will automatically expire.