Next to mortgages is money to buy one of the most common loans from Swedish households. A car loan is signed with the car as collateral and is only given if you buy a new or used car from an authorized car dealer.
Since the car is the security of the loan, you must make sure to repay at a rate that corresponds to at least the car’s depreciation. There are therefore no amortization-free car loans.
When you buy a car and borrow money for the purchase, you must add at least 20% in cash. It is regulated in the Consumer Credit Act (SFS 2010: 1846). The insert may consist of an exchange of an old car with the equivalent of 20% in value. You can borrow up to 80% of the purchase price for your new car.
If you are going to borrow money for the car via a bank, they usually always want you to buy the car through an authorized dealer of cars. For the bank’s account, this is important because they want to ensure that the car is carefully checked and that the valuation is really done.
The bank wants to ensure that the value of the car is kept as constant as possible. It may therefore occur that the lender demands that you must fully insure your car and that the insurance runs at least as long as the car loan.
Today, banks are not only lenders but also insurance companies. This means that they can be extra demanding about full insurance, but you can also use this to push out different banks against each other. Look at the overall cost and the protection you receive and take in various suggestions from different banks.
If you are buying a used car it may be worth knowing that almost no lender grants loans for the purchase of cars older than 9 years. The car must also be Swedish sold and you who borrow must be more than 18 years of age, have a fixed income and no payment remarks. However, there are exceptions to lenders who actually grant loans, but to much harder loan terms than other car lenders.
If you are going to buy an older car you can of course instead take a private loan / blank loan without security, because the bank then does not care about what you should have the money for. Then of course you can also borrow money to buy the car privately without going through an authorized car dealer.
Having a payment note can put a spanner in the wheel, an expression that becomes extra clear in this context. Having a payment note does not, however, have to mean that the payment ability is poor and that you have problems paying bills and loans.
For those who have a note in the baggage, there are lenders who can accept applications for loans anyway. We have found several lenders you can turn to. The loans they give are not dedicated car loans, but private loans you can take and use for what you want.