It is possible to buy a new car on a limited budget

Want to buy a car but don’t have a budget? Don’t worry, there are several solutions to help you finance it. Credit, leasing, state aid … We tell you everything.

Finance your car when you can’t pay in cash

Buying a new car, or even a used car, is a significant expense that many homes cannot afford. Fortunately, there are different means of financing.

– Car loan

To purchase a new or used car, you can apply for a car loan. Its amount is limited to 75,000 euros during a repayment period of 84 months. Many establishments offer car loans at different interest rates.

Please note that you may be asked to make a personal contribution for this type of loan, but this is not required. You can claim a car loan even if you do not have a financial contribution, you will simply have to meet certain conditions.

To find the best car loan deal, just use an online comparator. In just a few clicks you will get the loan you need to buy your new car.

– 0% car loan

Some manufacturers and distributors offer this from time to time in their offers. It consists of repaying only the amount borrowed, without interest. This type of credit is often offered when a range is to be sold and is generally only applicable to certain new models.

The zero-rate loan is distributed over a repayment period of two to three years, with a basic rate of 10 to 30%. But beware, this credit is often tied to additional insurance, and you may also be charged for controlling your file.

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– Lease

It is a service that allows you to rent a new car, with or without the possibility of buying it. Therefore, there are two types of rental:

Long Term Rental (LLD) puts a new car at your disposal, which you can change regularly. This agreement commits you to pay a monthly rent for a maximum period of 5 years. Its amount is set according to the model of the vehicle, its new value, its make, the duration of the contract and above all the estimated number of kilometers. Because you should know that a lease requires you to respect a certain mileage, and any overruns can incur additional costs to the final bill. It is set at 15,000 km for a petrol vehicle and 25,000 km for a diesel model.

Lease with option to purchase (LOA) applies to the same conditions of the LLD, but with the possibility of acquiring the vehicle. Tip: If you intend to buy the vehicle, it is best to accept higher rents, which will affect the residual value of the car at the end of the rental.

How to find a cheap car?

– Low cost cars.

They usually cost 30% less than other cars in the same class. These are new vehicles sold for about 10,000 euros. These cars, although low-cost, meet the approvals required to be sold on the European market, and therefore meet the safety requirements.

The secret of their price comes mainly from the place where they are manufactured and their standard equipment.

– Second hand purchase

By asking the right questions and negotiating the price, you can find a nugget in the used car market. If you’re not an expert on the subject, buy from a dealer to benefit from the seller’s advice. Otherwise, you can make a good deal on the side of ads between people.

Important points to check before buying: your car’s mileage, fuel consumption, last technical inspection, or first registration date to find out if it is a first, second or third hand vehicle.

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– Auctions

If you want to save between 20 and 50% on the purchase of a car, be interested in auctions, there are a variety of vehicles. Where do these vehicles come from? Mainly embargoes, car rental companies or sales of company fleets.

Before going on sale, all these cars benefit from a technical inspection, which guarantees the good condition of the vehicle. Good to know: Auctions are open to both individuals and car professionals.

Purchase aids to support

There are several tips for buying a new vehicle, did you know?

– The conversion bonus

You can benefit from it if you want to replace your old vehicle (a diesel or petrol car that will be scrapped) with a less polluting car, that is, a plug-in hybrid, hybrid or Crit’air 1 petrol car.

You can benefit from the conversion bonus regardless of the financing method you choose: purchase, credit, or rent. The amount of this aid varies depending on your income, the type of vehicle to be destroyed, and the type of new vehicle you wish to purchase.

– The ecological bonus

To receive this aid you need to buy a clean car, ie a new or used electric or hydrogen vehicle, or a new plug-in hybrid vehicle.

You can also benefit from the eco-bonus if you rent an electric car for at least 2 years in LLD or LOA.

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– The tax credit

There is a tax credit for the installation of an electric charging station. If you buy a plug-in electric or hybrid car, the state offers assistance with the installation of your charging station at home. But keep in mind that it has a € 300 limit.

How to save even more?

Whether during or after the purchase of your new car, you can always optimize your car budget. Just adopt the right reflexes:

  • Beware of options: you will pay for all the options of your new vehicle, keep only those that will be really useful to you. Removing certain options can significantly reduce the price.

  • Think carefully about the different options available to you: petrol, diesel, hybrid or electric car? Less polluting cars allow you to benefit from state aid that can be interesting.

  • Find the right directions for maintaining your car. Comparators allow you to select the best rates near you.

  • Save money on your car insurance: by comparing the offers of various insurers, you can find cheaper coverage while maintaining the same guarantees.

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