You need a car to work but do not have enough means? So what to do in case of auto credit refusal? Our lawyer answers you:
A car loan denied and you can not finance a new vehicle to go to work? Given the state of your finances, you fear the purchase of a car cash and your banker is not likely to grant you a loan. After having exhausted the list of your entourage likely to lend you a little used car, you see that a conventional car rental remains a solution nevertheless too expensive.
Fortunately for you, other ways can help you achieve your goals. Let’s see how to gain a means of transportation to help you make a living.
AUTO CREDIT DENIED: USE OF USED VEHICLES
Sales between individuals
Nothing stops you from surfing the internet looking for the turn of the century when you need a car. It all depends on your needs and requirements but right now you can find a car at 50 euros on used car sites!
About five million used cars are exchanged each year in France, and if the majority of transactions are carried out smoothly, the quest for the best value for money can sometimes lead to a bad deal. Therefore, remain vigilant about offers too enticing .
Unlike a new model, an “opportunity” presents more risks depending on its age and mileage. The first fears of the purchasers concern the possible mechanical failures, the seriousness of the maintenance, or the longevity of the vehicle. Afterwards, other problems are more pernicious, such as Internet fraud, make-up vehicles and even tampered meters.
If the bulk of the used market is in the hands of individuals, this track is not necessarily the least risky. In this case, it is certain that individuals do not have the obligations incumbent on professionals. Moreover, they do not offer any guarantee and engage only their civil liability. However, if you are interested in an offer from an individual, stick to this rule of caution; failing to present evidence of a rigorous interview or to accurately define the vehicle’s history, go your way.
On the other hand, buying a recent used car from an employee working or having worked for a manufacturer, for example, limits any risk of disappointment.
Auctions can be an alternative to a rejected auto loan. At auction, different terms inform you. “Sale by irrevocable auction and can not be canceled, vehicles sold in the state, unsecured mileage, sale without warranty etc.” To read the conditions of sale, the neophyte buyer can believe that the auction does not allow any recourse in case of problem. These references are mainly intended to protect the auctioneer from all liability. In fact, the buyer can, in most cases, benefit from the legal guarantee of hidden defects and texts sanctioning the error and deception on the so-called “substantial” qualities of the vehicle.
Similarly, and in the event that the car purchased is a voluntary sale, such as a garage rental return that seeks to exhaust its excessively large stock, or a problem car, you have recourse against the seller, exactly the same as the one used against the individual. Be careful though if it is a court sale. Indeed, if the car you buy is a seizure, you have no particular recourse even if the technical control would be proven. In this case, the warranty claim for hidden defects does not exist. In fact, the other remedies, even if they are conceivable in theory, are illusory because the seller, very often, will have filed for bankruptcy and will be insolvent.
Another difficulty arises when the seller is a corporation or a foreign individual. If, in theory, remedies exist, in practice they are almost impossible to implement. In the event that you are nevertheless decided to buy a vehicle from abroad, take all precautions by examining it carefully, because in case of problems you will only have your eyes to cry.
THE USE OF THE LEASE WITH OPTION TO PURCHASE (LOA) OR LEASING IN CASE OF NEED OF CAR
The interest of the LOA
With prohibitory borrowing rates, rental with purchase option (LOA) , also called leasing or leasing , is an alternative to auto credit. Understand that this other way of financing also aims to facilitate access to the automobile. Concretely the LOA is a transaction between a person who rents a vehicle, new or used, and a financial organization that bought it for him. Its duration is generally from 2 to 5 years. At the end of the term, the lessee either buys the vehicle at a fixed price or returns it. In the first case, he becomes the owner. In the second, he can subscribe, or not, to another LOA for a new vehicle.
In other words, the LOA is a long-term rental, with or without an option to buy according to the chosen formula. If your final intention is to buy, unlike credit, this method of financing allows you to integrate the user fees, excluding fuel. Otherwise, and like the conventional rental, you avoid paying cash your vehicle. The advantages of this process are numerous.
In addition to the cost of renting the vehicle, the rent can include the cost of maintenance, some consumables and insurance. The major difference with a credit is that no interest rate impacts that financing. Its overall cost, excluding fuel, is known in advance.
In addition, it turns out that the rent is often lower than a monthly credit , since it takes into account the depreciation of the vehicle. Similarly, the manufacturer’s warranty, possibly with an extension, runs throughout the duration of the lease. The motorist, simple tenant of the vehicle can not actually be seized.
The disadvantages of the LOA
Hitherto mainly reserved for new cars, the LOA opens up to the second-hand market. In short, your choices can currently be restricted in view of the limited supply. However, this mode of financing is being democratized by the impetus of car manufacturers such as Toyota, BMW / Mini, Mercedes / Smart and Volvo.
Despite these facilities mentioned above, please note that the deposit may be important. If the insurance is often left to the discretion of the renter, a sufficient financial guarantee must cover the total loss of the vehicle in case of accident or theft. Otherwise, in the event of a claim, rents must be paid until the due date. Also be aware that the restitution, the rigorous follow-up and the good condition of the vehicle remain capital to quantify the lowest possible restoration, even if the vehicle would be used. Another disadvantage may lie in the fact that the maintenance imposed is done in a network “builder”.