How long is a car loan?

The duration of repayment of a car loan cannot go beyond 72 months depending on the financial organizations, the maximum duration for a new car is generally 72 months (6 years) and for a used car 60 months ( 5 years).

When we talk about car credit, we often talk about the consumer loan allocated to the purchase of a new or used vehicle, not to be confused with a personal loan which can also be used to buy a car. The affected loan is a credit whose release of funds and the contract is intrinsically linked to the vehicle. The personal loan is a free loan, the sums of which are granted and released without supporting documents and without obligation relating to the purchase of a car.

Terms of a car loan repayment

car loan repayment

In terms of repayment, it is possible to choose a duration between 12 months and 72 months for a car loan, this, therefore, corresponds to a minimum duration of 1 year and maximum of 6 years. Note that dealerships and other sellers of new vehicles offer reimbursement periods of up to 72 months, while this same period will be 60 months for a used vehicle. These durations are similar within banks and credit organizations. The choice of duration is based on the amount of the loan and the repayment capacity of the motorist. Note that some banks can exceptionally grant a loan over 84 months but this duration remains relatively uncommon on the market.

Can you get a long-term auto loan?

Can you get a long-term auto loan?

The legislation on consumer credit specifies that a loan is considered as such when its amount is less than 75,000 euros (minimum amount of 200 euros) and that the minimum duration is more than 3 months. There is, therefore, no maximum duration imposed in the consumer code contrary to what some sites or certain banking organizations may announce, it is quite simply the financial establishments that set their own ceilings in terms of repayment duration. A long-term car loan can, therefore, be considered but within the term, a limit imposed by the bank.

To find more easily a car loan over a long period, it is therefore strongly advised to turn to a car loan simulator, simply because this tool allows you to compare the car loan offers offered by banks and other credit institutions. , which makes it easier to obtain financing that meets their needs. The simulative approach does not require any commitment and above all be done free online.

The option of buying back car loans for a long period

car loans

When motorists already accumulate several monthly payments and want to buy a vehicle to be reimbursed over a long period, it may be advantageous to use credit consolidation since this operation offers repayment periods up to 144 months. Consequently, the motorist can redeem his loans and add the amount dedicated to the purchase of his car to repay a single monthly payment over a period of 144 months, or 12 years. It is obviously necessary to choose the duration according to its repayment capacities and according to its needs.

Loan for home electronics / appliances

The purchase of the necessary electronic equipment for our apartment is usually an expense of several thousand USD. Few families can afford to buy it using savings. Most Poles do not save money at all because low incomes do not allow them to do so. Fortunately, today home appliances/electronics can be easily bought in installments.

When a washing machine or fridge breaks, so equipment absolutely needed in every home, many people have no choice but to seek help from a bank. When deciding to buy in installments a product worth even several thousand USD, it is worth considering all possible types of financing. And so to buy electronic equipment for borrowed money – you can choose from a cash loan and installment loan.

A cash loan is the most common bank loan

A cash loan is the most common bank loan

This is because it is a very flexible solution, and the money obtained in this way can be used for any purpose. Many people decide on such a loan in order to finance the purchase of electronic equipment/household appliances. However, we must remember that this type of bank loan can cost us a lot because the bank will add the commission and the preparation fee to the costs of the loan. Additionally, when deciding on a loan with insurance, the price of debt increases even more.

An installment loan offered in stores is another solution to finance the purchase of home appliances. This option may turn out to be much cheaper, especially if we hit the 0% installment promotion.

This type of offer is very often found in hypermarkets

This type of offer is very often found in hypermarkets

Such as Media Markt, Saturn or even Tesco. If we have already used credit products in the past, and our history in the Credit Information Bureau is positive, then we can purchase equipment without the need to provide evidence of income.

A very interesting solution can be the installment purchase on the Allegro website, which for some time gives the opportunity to buy on credit. All you have to do is be a registered user of the portal and select the appropriate option when purchasing equipment.

PayU installments, because that is the name of the financing system, allow you to buy products up to USD 20,000. Payments are made for us by the bank cooperating with Allegro that grants us the loan. However, we undertake to pay monthly installments on time to the lender’s account.