How and why do a car loan simulation?

By performing a car loan simulation, you make sure you find the best offer, one that offers a playable interest rate and a monthly payment well supported by your budget. This step is necessary because every loan has a cost, and it is important to carefully compare the different proposals of financial institutions and to inquire before you commit to repaying everything for the duration of the credit contract.

On Good Finance, an online simulation tool is available to you free of charge and without obligation to allow you to learn more about the many possibilities available to you and finally find the car financing with which you will be able to do. savings.

Auto credit simulation: what is it?

Auto credit simulation: what is it?

Thanks to comparators and online car loan simulation tools, the best car financing offers are becoming more accessible. Indeed, the Belgian credit market is saturated with offers, and it is more and more difficult to find your way around and get your hands on the proposal which seems to suit your selection criteria by referring to the budget necessary for the purchase of the new car, as well as your financial situation.

This is where our online simulator comes in, which will help you sort through the offers available from online banks and know in advance how auto credit works. Among the information that will be provided to you, you have, among other things, the APR or annual effective annual rate which includes the nominal interest rate, the administration fees and related costs to give you an idea of ​​the overall cost of this loan.

With this approach, you will be able to more easily locate your needs and review your repayment capacity before choosing the car loan offer according to your own criteria, ie the borrowing rate which seems to you the most advantageous, the repayment duration which you, as well as the amount of the monthly payment that you will be able to bear, taking into account your daily expenses and your other outstanding debts.

Accessible to all, car loan simulation is a procedure accessible free of charge and without obligation on the internet. As a credit applicant, you have the opportunity to review the various essential points of a car loan, namely the interest rate, the amount of each monthly payment and the total effective annual cost or APR, which are all key figures. which will be taken care of for the calculation of your car credit.

Because you will already know the cost and the number of installments that you will use to repay the credit, you may have a margin by setting the budget that you will use to buy a new car and determine the model that best suits your financial capacity. In addition to the ease of the process, setting up online car loan simulations saves you time because you no longer have to go to an agency and go around the banks to find the car loan offer that suits you.

How does our car loan simulator work?

How does our car loan simulator work?

With the auto financing simulation, you know more about what characterizes this type of auto financing offered by Belgian credit institutions and financial organizations. Often, car loan formulas are established according to the characteristics of an earmarked loan, which refers to a specific amount of money that will be used only for the acquisition of a motorized road vehicle whose make, model and type. are confirmed by the order form or the invoice which will have served as supporting document for purchase. Thus, many conditions are in place to facilitate the release of funds and online simulation is the first step to take.

Available for free, our auto credit comparator acts as a virtual calculator which will use the information you have provided in the credit application form to start calculating your auto financing. To make the simulation, you will simply click on the “simulate my car loan now” link to access the form, then you will confirm the type of vehicle you are going to buy (new or used car), before choosing the amount to borrow and the desired repayment period.

For example, if you opt for a new car loan, the simulator will redirect you to the adapted request form where you will provide basic information such as your contact address (e-mail), data concerning your job, your family situation and personal, your current expenses (rent), your current debts, as well as your stable monthly income.

This information is necessary to make your request a personalized and tailor-made request, adapted to your professional and financial situation. As soon as you have provided all the answers, you will receive the proposals from the credit institutions where you will choose the offer that speaks to you the most by referring to the total cost of credit, the maturities and the interest rate applied.

After the simulation, you will be able to apply for the auto loan online. You will receive an immediate reply in principle and a pre-acceptance of your request will reassure you and you will just have to complete the file with any additional information and send the necessary supporting documents to the credit institution.

To allow you to better follow the steps of the process remotely, some online banks will create a secure account for you. But do not forget to always make comparisons between the car loan offers that you will have before you from the same amount borrowed and the same repayment period to review the differences in the interest rate.

Car loan calculation and simulation

Car loan calculation and simulation

Admittedly, online car loan simulation saves you the step of calculating your loan, however, you must do a little calculation yourself to determine the budget necessary to carry out your project, the repayment duration that suits you and the interest rate offered to you by the credit institution.

To know the amount that you will borrow and then repay everything with interest, start by reviewing your project and determining the real cost of acquiring a car. For example, if you opt for a new vehicle, it would be better to wait for promotional offers during car shows to obtain advantageous offers, or even to take advantage of off-peak periods to buy a more attractive model for the same price. 

And if you want to buy a second-hand car, take the time to carefully compare the offers of garages and those of individuals to find the best proposal, while avoiding as much as possible the hidden defects of the vehicle and by planning the essential expenses such as maintenance costs, omnium insurance premium, etc. Moreover, some online car loan offers offer you to finance up to 120% the value of your vehicle, so that you can borrow the full purchase price of the car, VAT included, and this, including additional costs.

Another essential point in calculating the car loan, you must determine the repayment duration, because it will have a direct impact on the amount of a monthly payment and the total cost of the loan. You will understand, if you opt for a long repayment period, you will have lower monthly payments, but in the end, you will have paid more than for a more concise duration.

Indeed, the interest that you will pay each month will be calculated on the basis of the principal owed, and with a shorter repayment period, you reduce the interest, even if the APR remains the same.

You also need to consider the fact that too large a monthly payment may weigh on your monthly budget and to obtain the exact amount that will be supported by your finances, calculate your monthly expenses and income by already anticipating the repayment of car credit. By doing so, you will be able to better manage the first monthly payments and be able to request an early repayment if you anticipate large cash inflows in the future.

Use our online simulation to properly compare the many car loan offers in Belgium, based on your actual financing needs and referring to the total amount of credit. This is the APR, the annual effective annual rate that each bank, each credit institution must appear on a car loan offer, and which takes into account the interest due for each monthly payment, the application fees and the cost of insurance. When you do the comparison, remember to always use the same amount and the same repayment tenure to find the most advantageous auto finance solution.

In the context of a car loan offer, the APR and the total cost of the credit are reliable values ​​which will certainly indicate the most advantageous offer to you. However, other parameters must be considered to find the best proposal from an online car loan simulation. This is the case of payment modulations which allow you to foresee periods of financial difficulty, or even the possibility of early repayment without penalty

What is the point of comparing auto loan offers?

What is the point of comparing auto loan offers?

The main interest of an online car loan simulation remains the access to the best proposals. Not to mention that you have a free tool that does not commit you to anything, but which allows you to compare the offers of several credit institutions that you will put in competition.

At this stage, keep in mind that the purchase of a new car is your project, not that of your bank, it is up to you and you alone to determine the amount you will need from the real value of the car you want to buy, as well as the repayment duration that corresponds to your financial capacity.

Before comparing the car loan offers with the online simulation of Good Finance, bear in mind that the interest rates applied are fixed, because they are installment loans. You will then take into account the insurance, guarantee costs, administrative costs and any additional costs necessary for the release of funds.

From this data, the online simulation will give you the total cost of the car loan expressed as an overall effective rate (TEG) or as an annual effective rate (APR). This APR serves as a reference value which will allow you to make comparisons based on the same criteria and to choose with full knowledge of the offer which will seem most advantageous to you.

Thus, all the characteristic elements of auto credit delivered by the simulation are essential, because you will use them to differentiate between the many offers available on the Belgian credit market. In addition to the cost of credit, also take into account the benefits and other services that make the difference between credit institutions established in Belgium.

When you have the results of the online simulation before your eyes, you will be able to compare the offers and choose the formula that will seem most advantageous to you based on various parameters such as the APR, the repayment tenure and the total cost of the credit. To choose your car financing well, take the time to compare them properly and find out about the possibility of providing a personal contribution, a way to participate in the purchase of the vehicle and reduce the interest rate.

Also take the time to carefully study your priorities with regard to the make and model of car to buy before determining the necessary budget which will not be able to exceed 75,000 USD within the framework of a car loan taken out according to relative regulations. consumer credit. Finally, do not forget to properly calculate the impact of this car loan on your monthly budget and find out about the usefulness of optional insurance.

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