Borrow or pay cash
When a household wants to replace their car, the question of financing can sometimes be difficult to decide because depending on the price of the vehicle, it can be purchased in cash. As a result, the household, depending on their situation, must study the possibilities of financing in order to select the most suitable method of purchase for their project. Therefore, how to pay for his car?
Paying for your car
Depending on the household situation and the type of vehicle sought, the financing of a vehicle can be operated in several ways:
- Paying for your car
- Paying for your car with a credit
In both cases, the household must have the necessary resources before considering the purchase of their vehicle. However, some households may have savings to purchase the vehicle without having to go through a bank loan.
Depending on the price of the vehicle and its vendor, the household can make the payment by different means:
- Bank Check : This payment method is often used to make cash purchases. However, the household is advised to obtain a check in order to secure the transaction.
- Cash : This means of payment is the most used for transactions between individuals and professionals. However, the legislation governing payments by cash stipulates that for the payment of a professional, the amount of the cash can not exceed 1 000 €. Beyond that, a check or a transfer may be necessary in order to continue the transaction. Regarding payment in cash between individuals, there is no ceiling framed by law. Nevertheless, it is advisable to the household to realize a writing in order to prove the payments.
- Bank Transfer : This payment method can be used to pay for a car or any other purchase. However, this method of payment must be accepted by the seller.
Paying for your car with a credit
If the household does not have the financial resources to pay for their car, the car can then use consumer credit.
Being able to be affected or not, this loan is realized by a banking establishment and implies the payment of interest on the sum lent. Also, fees and insurance are to be taken into account in the cost of credit.
However, the household can sometimes benefit from a commercial offer to limit the cost of borrowing. As a result, it can be just as interesting to pay for your car with a credit if there is no extra charge.