Tramites y Requisitos para Financiar un Coche

Do you know the requirements to finance a car?

If you are considering buying a vehicle, we anticipate that you will probably have to borrow the money. Here are the requirements needed to finance a car, so that you have everything ready when the time comes.

How to finance a car

We also inform you of the documentation that normally has to be presented and step by step so that you don’t feel lost. So take notes!

Requirements to finance a car

As with the financing of other assets, when buying a car what they will take into account, be it the bank or the finance company, is that you can return the money they are going to lend.

Therefore, one of the necessary requirements for you to acquire the vehicle is that you can assume the debt.

For this, the bank or financial entity will make an analysis of the revenue you are obtaining, the payments you make each month and whether you already have other assets.

Typically, the minimum requirements for financing a car are:

  • Being of legal age (being 18 years or older)
  • Do not be included in a list of defaulters.
  • In addition, they will certainly ask you to link in some way with the entity that will lend you the money, such as through direct debit on your payroll, whether it is a bank, car insurance or unemployment.
  • If you finance the car at the dealership, you may have to make an entry that will be around 10% of the vehicle price.

Documents to finance a car

The documentation that should normally be submitted for the financing procedures is as follows:

  • A photocopy of the DNI
  • Photocopy of the last three payrolls or the income you are receiving.
  • Last income statement
  • Bank document with IBAN account number. You can be the first page of the passbook.
  • Proof of Goods currently has
  • Professional life or proof of work

Finance a car in Spain

Types of loans

In all loans, whatever they are, there are convenient payment terms. The most frequent types of loans can be summarized as follows:

  • Flexible payments:

    A flexible loan is one that has reduced installments over a period of time and then increases. You need to refer to the following payments.

  • Fixed interest:

    This interest rate means that, from the beginning of the financing until the total cancellation, the payment installments will be exactly the same.

  • Variable:

    A variable interest rate adjusts to market fluctuations or as determined by the benchmark.

  • Opening Committee:

    Some entities charge a commission when completing the process, which can affect the savings available to complete the total purchase amount.

  • Total cancellation fee:

It is the surcharge that the customer pays the entity for the advance.

Knowing in depth the terms that regulate these financing will avoid surprises that can cause inconvenience.

If you think you are a little overwhelming, hire a consultant to help you make the best choice.

In addition, you can use a loan simulator to determine possible payment installments.

Bank loan

When financing is done by the bank or another lender, you go directly to the bank, credit union or other lender and apply for the loan.

These bank lenders can «pre-approve» you.

If a lender is willing to lend you a loan, it will quote an interest rate, the term of the loan (number of months) and the maximum loan amount based on certain factors, such as your credit score, loan terms, the transaction and the type of vehicle.

The lender will give you a quote or a letter of conditional commitment before you go to the dealership.

The bank, credit unions and other creditors offer certain terms and those terms are negotiable.

Requirements to finance a car on the spot

Dealer loan

When the dealer gets financing, he collects his information and sends it to one or more potential vehicle finance companies.

If the lender decides to finance your loan, it can authorize or quote a fee to the dealer to finance the credit, known as the «purchase fee».

The interest rate you negotiate with the dealer may be higher than the “purchase rate” because it may include an amount to be paid by you to handle the financing.

Resellers may have some freedom to charge you in addition to the purchase fee they receive from a lender, so you can negotiate a better interest rate than that quoted by the reseller.

Some dealerships often finance «internal» auto loans for bad credit or without borrowers.

At dealerships that advertise «Buy Here, Pay Here», you will see signs with messages like «No credit, no problems!»

The interest rate on loans from these dealers can be much higher than on loans from a bank, credit union or other type of lender.

Tips for financing a car

Before financing a vehicle, it is important that you read these tips so as not to encounter any surprises when returning the money:

  • Pay attention to the actual loan repayment possibilities
  • First of all, keep in mind that you must purchase a vehicle that fits your real budget and that you can return it comfortably.
  • Think about the debts you already have and your ability to take out a new loan.
  • Also keep in mind that you will have to pay registration fees, transit fees, etc.
  • Control all existing financing options
  • You should carefully consider whether to apply for a loan from a bank or do so through a financial company at the distributor, as conditions vary.
  • Financial companies, as a rule, are more flexible in granting the loan to finance the vehicle, as they are linked to dealerships and the objective is to sell the car. Even so, they will study very well their real possibilities of returning the money.
  • Banks usually offer better financing options than these entities, facing the great offers of financial companies.
  • The interest you will have to return is something that you must also take into account before buying the car
  • Simulate your loan, so you can check the monthly installments that you will finally have to pay.
  • If you have capital to make an entry, you better do it, because the interest is reduced and you don’t have to finance 100% of the amount.

Requirements to finance a car 2018

Best options for financing a car in Spain

Although there are several entities with which we can finance the car, the most common is to do it through a dealership or a bank.

In the first case, we may have more flexibility to make payments, but the interest is usually higher.

In the second, however, we will probably pay less in the long run, although we usually only have the loan option to cover the purchase of the vehicle.

It depends a lot on the case of each one, but here we leave some of the best options to finance your car:

  • Younited – Online Loan Younited Credit

Younited customers can access financing of up to 40,000 euros for the purchase of a new or used car or motorcycle.

Through the Younited Credit Online Loan, the user will be able to settle his debt in a period of 24 to 72 months.

  • Sabadell – Car Credit

With Crédito Automóvel, Banco Sabadell customers can access financing of up to 60,000 euros for the purchase of a vehicle, which they can return within a maximum period of 96 months.

To benefit from low interest rates, it will be necessary to direct the payroll, in addition to being or becoming a customer of the entity.

Thus, for a loan of 10,000 euros over five years, the customer will assume a TIN of 6.75% and an APR of 7.87%.

If there were no other income contribution, the NTI would increase to 9.75%.

Banco Sabadell offers the possibility of payment in 12 or 14 installments.

In relation to commissions, the entity applies 2% for opening.

  • Cetelem – Car Loan

knows the requirements for financing a Coche1

With the Financing of Cetelem Vehicles, the client will obtain between 3,000 and 60,000 euros The entity of the BNP Paribas group offers the possibility to acquire financing for new and used vehicles without commissions and without the need to contract any related product.

The Cetelem Automobile Credit can be repaid in up to eight years, as long as its value is equal to or greater than 10,000 euros.

  • Evo Finance – Personal Loan

With the Evo Finance Personal Loan, the customer has the possibility to finance the purchase of his car or motorcycle, whether new or used. For this, you can request from 3,000 to 30,000 euros and amortize them over a period of one to eight years.

  • BBVA – Online car loan

BBVA Online Car Loan allows its customers to finance themselves with up to 75,000 euros, repayable within a maximum period of 96 months.

To benefit from low interest rates, the customer must directly charge a minimum payroll between 1,000 (in the case of a single holder) and 1,500 euros (for two holders).

  • Bankia – Personal Loan

With Bankia Personal Credit, customers can obtain up to 30,000 euros to finance the purchase of their vehicle.

To enjoy advantageous conditions, the only requirement will be to be a client of the entity.

Thus, for a loan of 10,000 euros to be amortized over five years, the TIN will be 5.95% and the APR will be 6.78%.

In commissions, there is an opening of 1.5%.

  • Abanca- Automatic Bonus Credit

Abanca’s self-subsidized loan offers 6,000 to 60,000 euros to be repaid within a maximum period of eight years.

To do this, it is necessary to be a client of the entity and have a payroll or recurring income domicile of an amount equal to or greater than 600 euros and subscribe to home, car or payment protection insurance.

Requirements to finance a car in Spain

Thus, for a loan of 10,000 euros over five years you must pay a TIN of 6.75% and an APR of 8.36%.

In relation to commissions, the entity applies a rate of 1.5%.

We hope this information was useful!

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Daniel Martínez
Daniel Martínez
Como recién graduado, me encantaría poder entrar a formar parte de una empresa en la que poder aplicar todos mis conocimientos y, al mismo tiempo, que me permita desarrollarme profesionalmente. Gracias a mi formación especializada, considero que puedo aportar valor y seguir desarrollándome profesionalmente en una compañía que coincida con mis valores y expectativas.

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