As winter comes, more and more people realize that a car that has been working well for years is no longer the safest, time to replace.
However, the family’s reliable car has become an almost indispensable tool: it is either essential to work or plays a big role in transporting loved ones, or it performs both tasks, as is typical of most Hungarian households.
As our family members also travel in this car
We cannot save on safety, so it is advisable to replace our used car from time to time instead of splitting. The question then arises as to whether buying a used car on credit is a good financial decision.
Find the best financing and get the vehicle you want! With our car loan calculator, you can find the cheapest loan that can cover up to 100 percent of the purchase price.
Used Car Loan? What should we buy if we don’t have enough?
Of course, it’s not a small investment when we buy our next car. According to statistics, Hungarians typically change cars every 5 years and spend about 3 million HUF. But where does this money come from?
Whoever has enough savings and enough money can, of course, buy it on their own. However, the majority will have to look for external financing for the purchase, and there are several opportunities here.
Whether you are buying a car from a salon or dealer, you can take a lease or borrow a car to buy a car. However, private individuals can typically only bring their car with cash and only pay through a broker. Thus, the two most common forms of financing are leasing and personal loans.
There are plenty of personal loan offers on the market that offer favorable rates. If you really need $ 3 million, the Sberbank Fair Plus loan can be the cheapest loan with the Price Guarantee, as the financial institution will lower the loan rate if you show a cheaper loan. For the best interest, you need a net income of over $ 250,000 and a deposit with your bank. For the 72-month term the installment from the second month is HUF 51,655 and the APR is 7.66%.
Leasing or car loan? Which is the better solution?
Although similar, the two types of funding are very different. Let’s see what this is about:
Used Car Leasing : During financial leasing we are only the operator of the vehicle, the owner will be the financial institution or the dealer, he will buy the car. In exchange, we pay a monthly interest-bearing rent, which reduces the purchase price of the car. At the end of your chosen term, you can decide to return the car and not pay it back, or pay the remaining amount of the purchase price. In the last step, we will own the used car. In the case of leasing, we also have to pay the transcription fee and the costs involved, and we also need to have our own resources when buying the car.
Used Car Loan: A free-to-use personal loan that has become one of the favorite sources of financing for Hungarians due to its flexibility and ease of application. Compared to leasing, a free-to-use personal loan offers more flexibility in car purchase. We can take any car as the use of the loan is entirely up to us, which is why it is useful to buy a car from a private individual. We buy the car from a personal loan, we are the owners, the lender does not ask for the car as collateral. What’s more, today’s personal loan plans do not require any own funds, just a lender’s financial institution asking for income protection. And if you are left with the loan amount after you buy the car, you can spend it on various administrative fees, such as a rewrite.