When buying or renewing a car, we need financing. Banks and dealers make it easy to finance vehicles online, even making a calculator available to simulate financing.
If you want to apply for a car loan, this content is for you. We will see the main vehicle financing options and crucial aspects before opting for credit. Additionally, you will learn to do a simulation of the financing.
What you need to know about online vehicle financing
Online vehicle financing is an excellent alternative to purchasing new or used cars. Public and private companies offer these loans in this category. You need to find out which of them offers the best financing plans. We have two means to request these credits:
- Bank entities.
- Vehicle dealers.
In the case of banks, their rates are usually competitive and accessible. Your chances of obtaining a loan are higher if you are already a client of these financial institutions. The mortgage loan is one of the modalities banks offer to finance the purchase of vehicles.
Most banks have streamlined the procedures for granting loans. Now we can do all the paperwork online. Even so, it requires patience, filing documents, and having a good credit history.
Financing through a dealer is usually faster and more varied than banks. However, you must consider the interest rate that is higher than in banks. Regardless of the source of the credit, we need to keep certain aspects in mind to choose the best online vehicle financing. Let us see what they are.
Get the best financing to buy the vehicle you want
Precisely calculating the number of credit installments helps us organize our budget. In addition, we can choose the financing that fits our actual income, so there is no default on payments. It is necessary to take time to calculate all the charges involved in the financing:
- Down payment amount.
- Total annual cost (TAC).
- Interest rate.
- Commissions.
- Vehicle insurance.
These five elements make up a loan and determine which is the most convenient in each case. The financing will depend on the amount of the down payment. The higher this amount, the more comfortable the funding will be.
For example, if you are interested in paying less in monthly installments, a long-term loan is convenient for you. In another case, you want to pay off the financing in a brief time so the monthly installments will be higher. Besides, the commissions are affected by the term of the credit.
Each bank and lender have its auto financing plans. That is why it is convenient to carefully examine what each one offers and choose the one that is most convenient in our case.
¿Where to apply for financing?
We have already mentioned that banking institutions, companies, and car dealers provide credit for cars. It is necessary to enter the website of these entities, find out what interests us, and request financing for the vehicle.
According to CONDUSEF, these are the interest rates applied by the leading banks for vehicle financing:
| Banking entity | Annual interest rate (%) |
| BANORTE | 13.99 |
| INBURS | 16.74 |
| BBVA | 18.99 |
| CIBANCO | 13.90 |
| SCOTIABANK | 10.99 |
| HSBC | 10.90 |
Of course, the loan percentage is also variable depending on the financier. Almost all banks grant, on average, 30% of the vehicle’s value. You also must consider the payment terms offered by the different lenders, which range from 12 months to 48 months.
With all this information, you will be able to select where to make the financing request. Now, to obtain your credit approval, you must fulfill certain obligations. Which are they?
Requirements for your auto loan application
Financial institutions have conditions when granting loans. Essential prerequisites include the following:
- Identity documentation in order.
- Proof of address.
- Job stability (require seniority greater than two years).
- Be of legal age.
- To not have any other pending credit in the entity.
- Bank account statements that guarantee your monthly income.
Lenders require a good credit history and collateral, which could sometimes be the same car they are financing.
How to calculate my loan payment?
We currently have several digital tools to simulate credit. Each credit institution has a calculator, which you can access from its web portal. Some free apps are also available to emulate how much and how to pay for car financing. These automatic and convenient calculators have some simple steps for their usage:
- Access the financial institution’s website.
- Select: “car credit simulator or calculator.”
- Enter the vehicle data (value, model, year, state).
- Down payment amount.
- Credit term.
- Frequency of installments.
- Insurance payment method (total or in installments).
What are the most used simulators for calculating automotive financing?
- Automotive credit simulator application.
- BBVA simulator.
- CONDUSEF credit calculator.
- Motorfy Simulator.
- HSBC financial institution calculator.
If you wish, you can enter the platform of other financial entities and search for the credit simulator for vehicles. In all cases, the calculation is fast and accurate relatively.
Expert tips for financing your vehicle
Applying for financing is acquiring debt. Financial experts do not recommend going into debt, and if you do, it is better to take steps to meet this financial commitment. What we do before applying for credit is crucial to our success as borrowers.
The market for online vehicle financing is extensive in our country. It allows us to compare the best options according to our ability to pay. Undoubtedly, an automotive credit simulator will help us maintain a good credit history.
