When you go for loan offers to finance the purchase of a car, not all entities allow you to finance 100% of its value. Usually, the maximum financing they grant you is 80% of the cost of the vehicle. For example, if you want to buy a car that costs 15,000 dollars, the financial one will grant you up to 12,000 dollars to pay it in installments. The rest (3,000 dollars) is what is called “the entrance” and means the amount you must contribute from your own savings to qualify for the purchase. It is a down payment of an approximate amount of 20% of the value of the car.
Why is a ticket required?
First, the entry serves to verify that the borrower has sufficient financial resources. In addition, it serves to decrease the amount financed and, in the event that you cannot continue paying, it allows you to sell the financed asset and repay the debt without complications, even if the value of the asset has decreased.
Can you finance a car without a ticket?
If possible. Both some credit institutions (EFC) and some car finance companies allow you to buy a car financed without entry. However, your chances will be greater or lesser, depending on the car or entity.
Banks, in general, do not allow financing a car without entry. However, you can negotiate or link in exchange for financing the total cost of the car. Another option is credit institutions (EFC) that usually offer 100% financing for the purchase of a car, although not all. Also the dealers (car finance companies) have several offers and promotions depending on the car brand, model or type of financing you choose. Last alternative can be P2P loans with which it is also possible to obtain the total amount to finance a car without entry.
The possibility of obtaining financing without entry also depends on the type of car you want to buy. If you are looking to buy a new car, it will be the most complicated alternative to obtain 100% financing. In return, if you want to buy a second-hand car you will have more options and opportunities to get financing without paying the entrance fee.
The most advisable thing is to go to several dealers and financial institutions so that you have different alternatives and more offers to negotiate to be able to finance your car without paying a ticket.
What are the pros and cons of buying without and with input?
Financing a car without a ticket has its advantages and disadvantages just like buying a car paying the entrance fee. It will depend on your economic situation and what suits you at the time of purchase of the car.
Financing a car without a ticket, you will not have to have savings or spend them. However, you will have fewer offers to choose from since not all cars or all loans will be available. In addition, the amount financed will be greater, so the interest payable will be more.
Financing a car with entrance, you will have to have your own savings and use them. On the other hand, there will be less amount to finance, so you will pay less interest, you can choose between more loan offers and types of cars and you can negotiate to improve financing conditions.
Undoubtedly, both options have both advantages and disadvantages. It is always advisable to perform a simulation of the loan you want to contract and the amount you want to finance. In this way you can choose the option that best suits your preferences.