Statistics show it: used car credit is doing very well. According to the latest publication of ASF (French Association of Financial Companies), the production of used car financing increased + 14.8% in January 2018 and + 3.7% on average in the last quarter 2017. So, rather than a new vehicle, why not take advantage of the opportunity?
1. Lower prices
It seems obvious but it is worth remembering: by opting for a used car rather than for a new car, you save money. You will be able to find high-end models with all the necessary options while respecting a reasonable budget, while for the same price, you would only be entitled to a low-end vehicle if you bought it new. In 2015, the price of the average used car was 14 926 € according to a study of the Argus, 10 000 € of month that of a new vehicle.
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The current rates of used car loans are particularly low : it is possible to benefit from rates lower than 1% over 12 months and 1.50% over 24 months for an amount greater than € 10,000, and from 2.10% out of 36 months beyond € 5,000! This reduces the total cost of investing in a new vehicle. For the purchase of a used car of € 15,000, a car loan of this amount to be repaid over a period of 48 months can be offered at 3% insurance included with monthly payments of approximately € 330 according to a Simulation Credither guide.
3. The possibility to opt for the LOA
The lease with option to purchase (LOA) is not reserved for the acquisition of a new vehicle! This system, which allows you to rent your car for a certain period, from two to five years, then to buy it by paying the rest of the vehicle’s amount, is also available for used cars. The LOA can be done with or without initial input. Leasing with a used vehicle is however not possible for a transaction between individuals: it is offered by dealers and resellers.
4. Less expensive insurance fees
The choice of a used vehicle does not only allow you to save money on the purchase. It’s also about the insurance fees that you will win! In fact, the insurance premium is lower for used vehicles than it is for new models.