Changing a car that has been financed by a loan is not easy. Resale may be prohibited depending on the loan taken out and above all, if it has not yet been settled. For those who want to change cars regularly, there is fortunately the option of leasing.
Do you dream of a more modern and recent car, your family has grown or you simply want to sell your car because it is no longer used? There are a multitude of reasons that explain the desire to part with your current car. The question now arises:is it possible to change while the car loan is still in progress? The answer is:it all depends on the type of credit you have taken out. In the event that you have previously opted for an assigned car loan, you do not have the possibility of reselling your car to buy another until the repayment of the loan is effective. Indeed, you are not really the owner of the vehicle, because it is the bank that settles the payment of the seller every month. It can therefore impose a number of requirements.
On the other hand, if you have subscribed to an unallocated personal loan, the situation changes. You have the possibility of reselling your car since the funds which you borrowed at the beginning are usable freely. The bank has no say in what you did with that money. The sale is then feasible. The sums collected will allow you, in the process, to settle your loan definitively. See here for more details or here.
Belonging to the family of consumer loans, leasing also called leasing consists of renting a new car over a long period of two to four years. With this solution, the manufacturer remains the owner of the vehicle. In return, you must pay a monthly rent which varies according to the duration of the rental and the depreciation of the automobile. You are also responsible for payment of maintenance and insurance costs.
To be able to take advantage of this offer, the payment of a personal contribution generally equivalent to 15% of the cost of the car is required at the beginning. The first rent will also be expensive since it can represent up to 35% of the total price. At the end of the contract, you have two options:either you decide to buy the car or you return it to the leasing company. With the first option, the security deposit will no longer be returned, but will be deducted from the cost of the sale. With the second option on the other hand, the deposit is returned to you. Another possibility is to lease a new car.
This solution is advantageous if you want to change models regularly and thus be aware of the latest automotive trends.
Please note that there are restrictions. In the event of premature termination of the contract, heavy penalties are applied. In addition, you are subject to a mileage limit, not to mention the obligation to preserve the good condition of the vehicle.
