Automotive credit: loans to buy new and used cars

Automotive financing refers to the money you request from a financial institution to purchase a car, whether new or used.

If you need a loan to buy a car, we will explain everything you should know.

What is an auto loan?

What is an auto loan?

It is the loan granted by a bank, a car agency or a specialized company to a person or company so that it can acquire a new or used car. In this type of loans the car is paid gradually for a certain period in the contract between both parties.

Types of auto loans

Types of auto loans

There are different types of loans to buy cars, but among the main ones we have the following:

Credits for new cars (0 km)

It is the loan made by those who wish to obtain a car without travel. As the amounts are normally high, these types of loans have demanding requirements and the rates depend on the financial situation of each person.

Pre-Owned Car Credit

A very smart option is to buy a pre-owned car. It will be under warranty and with very few kilometers, but the price will be significantly lower than a new car. This type of sale is usually backed by an automotive agency, which can offer its own financing.

Credits for used cars

Unlike the credit for new cars, the used car loan tends to be for a smaller amount and the requirements may be less demanding. Although today it is presented that the lenders put limits on the money and not on whether the car is new or used.

In other words, if you apply for a vehicle loan, the lender may put a limit on what you can lend, depending on your situation, and you already decide if with that money you buy a new or used car.

Many people think that if one has the money it is preferable to buy a car in cash. The reality is that, if you have the option, it is better to acquire a loan to finance the new car, since it is a depreciable asset over time. Only by leaving the store a car loses 18% of its value.

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Automotive credit without credit bureau and without guarantee

If you are in the Bureau, you have no guarantee and still need to buy a car, you can use a car loan.

Unlike previous loans, the pledge is a personal loan for the purchase of a car, whether new or used, in which the car acts as collateral for the loan.

If you cannot pay the entire loan, the lender is entitled to keep ownership of the vehicle. This is carried out thanks to the pledge contract signed when the negotiation is agreed.

If you cannot obtain financing for your car because you are in the Bureau, you can always go to a personal loan without consulting the Bureau. The amounts are less, so it will help you pay a part of the car.



To obtain a car loan, you usually request:

  • Age: That you are over 20 years old.
  • Employment: That you have a stable job (possibly with income higher than the minimum wage).
  • History: Have a good credit history.
  • Initial fee: That you have an initial fee for the purchase, usually 10% or 20%.

Find the best car loan

Find the best car loan

You should always compare different lenders. Depending on your situation you can go to established banks, car agencies or specialized financial institutions.

In all cases you should ask about the interest rate, the cost of the insurance, the requirements and the initial fee.

Remember that Robin can help you compare several lenders from the comfort of your home and on your phone, you just have to start chatting!