Car credit over 10 years: is it possible?
Many motorists want to buy a vehicle and opt for a 10-year repayment term, but is it possible? We will explain everything to you.
Car loan over 10 years: can we get it?
A car loan is a loan based on consumer credit legislation and the law concerning this financing is clear: the maximum amount of repayment of a loan is 75,000 dollars and the maximum duration is 7 years, or 84 months. This simple reminder of the consumer loan legislation is enough to answer the question and lets you know that a car loan over 10 years is simply not possible. Beyond the lack of financing solution, there is a real question that revolves around the interest of such a loan, especially that a car will lose most of its value in the first years and that its cost maintenance will get heavier over time.
Most motorists will borrow over 5 years as part of their car loan, it is an average duration which allows to amortize the price of the car and to finish the repayment of its loan. At the end of the 5 years, most will try to resell their car and take out a new loan. Borrowing over 10 years to buy a car would not guarantee the proper functioning of the vehicle and could lead the driver in a complicated financial situation, it is therefore necessary to lower the amount of the car or find another type of financing, such as LOA or the repurchase of credit for example.
Auto loan solutions over 10 years
If a 10-year car loan is not an option, be aware that credit consolidation can make it possible to redeem existing loans and include an amount dedicated to new financing such as the purchase of a car. The advantage of buying consumer loans is that it can be implemented over a period of 144 months, which simply means a repayment over 12 years. The principle is simple since the motorist asks for a bank to redeem his credits and to include the amount of the car in the financing, this then makes it possible to reimburse a single smaller monthly payment, set up thanks to a fixed rate and a longer repayment term.
The other solution is to turn to rental with option to buy (LOA), a rental formula with financing that allows you to rent the car for the first years and then buy it by paying the amount of the option of purchase, also called residual value . The advantage of this formula is to be able to choose the vehicle but also the annual mileage, which allows you to adjust the amount of the rent according to your needs, and vice versa. We can thus drive in a high-end vehicle, which would not necessarily be accessible with a conventional car loan, an online quote request can allow us to project ourselves and obtain an estimated amount of rent.