Uncategorized

Can a student make a loan to buy a car?

Nowadays, getting your license leads to more and more travel facilities. Driving exams are passed by a huge number of students every year and it is not uncommon for many of them to want to get their own car in order to be much more free vis-à-vis their parents. However, buying a vehicle comes at a considerable cost. Since young people also have lower incomes, obtaining a car loan is a solution in some cases. But under what conditions could a student obtain a car loan?

 

At what age can a student get a loan?

student loan?

Of course, a person wishing to take out a car loan must be of legal age. This condition also applies to other types of loans such as mortgage credit, holiday credit, motorcycle / scooter credit but also insurance as well as all the other products offered by Crédit Populaire Européen. In any case, the official practice of an automobile can only be done at the minimum age of 18 years. Therefore, this modality compared to the majority of the student will not cause you any problem.

 

I am a student, under what conditions can I apply for a car loan?

car loan

The various formalities to be completed in order to obtain a car loan are quite simple. Unfortunately, the student cannot, on his own, be granted such a loan. Indeed, one of the essential conditions for the allocation of a loan lies in the fact that one must be remunerated on a regular basis. Student jobs are therefore not taken into account: only the final contracts are valid.

A car loan is reimbursed on average over a period of three to five years (it all depends, of course, on the cost of the vehicle). Without fixed income, it is therefore impossible to ensure this reimbursement. Parents or any other adult person must be responsible for the commitments made for the student.

In addition, the parents of the young person must be domiciled either in Belgium or in Luxembourg. And in addition, anyone aspiring to acquire a loan can neither be listed nor denounced by the Best Bank. However, it should be noted that certain cases can override this clause although, most of the time, these steps are not the simplest.

 

What documents must be provided for the approval of a car loan?

car loan?

When signing the contract certifying the approval and formalization of the car loan, the presence of the identity card as well as the residence card (for people not born in Belgium) is required. Then, the student’s parents must bring their last three salary slips as well as their three bank statements attesting to the payment of this salary to the bank account. These documents are required for any type of loan.

More specifically and concerning the car loan, the order form is requested for new cars. Compared to second-hand vehicles, the registration certificate and the gray card are required, not to mention the private deed.

 

Car loan example

Car loan example

We invite you to use our simulator. You will find that the APR applied to a new vehicle is lower than when it is a used vehicle. Why? This is simply due to the fact that the lender’s collateral is superior. Indeed, in case of resale the new vehicle will keep more value. Also considered as new vehicles, vehicles less than 3 years old.

New vehicle

Amount borrowed APR Duration Premium Total cost
$ 22,000 4.99% 60 months $ 413.95 $ 24,837
$ 30,000 4.99% 60 months $ 564.48 $ 33,868

Used vehicle over 3 years old

Amount borrowed APR Duration Premium Total cost
$ 22,000 8.5% 60 months $ 448.04 $ 26,882
$ 30,000 8.5% 60 months $ 610, $ 96 $ 36,657

 

Mark Nelson

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