Can we make a car loan between individuals?

The question of financing a car is often subject to questions from motorists. Different solutions are possible, including car loans between individuals.

Principle of auto loan between individuals

The car loan between individuals is simply asking for a sum of money from a third party to purchase a vehicle. This sum is simply transformed into a debt that is committed to repay according to conditions defined when lending money between individuals . The idea of ​​this loan is not to turn to banks or bank credit agencies, the motorist can appeal to a neighbor, a friend or an unknown person in order to obtain the desired amount to buy his car. opportunity . Since there is no bank credit institution, there are also no financial institutions’ credit acceptance requirements (including the ability to borrow for car, or the rate of indebtedness). It is the particular lender that will impose its rules and generally they are less restrictive than a bank.

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Side formality, we must find a serious individual offering a loan of money to finance the purchase of the used car. The implementation of the debt can be done without document, simply it is strongly advised to establish a contract specifying the amount of the sum which is lent as well as the conditions of repayment, including the amount of interest . This contract can be deposited with a notary to establish a legitimate recognition of a debt. This reassures the lender who makes available a sum of money.

How to obtain a car loan between individuals? Are there any fees?

Many scams are regularly listed on forum sites where sending unwanted emails. It is strongly recommended to call on someone close to you or an acquaintance. The principle of trust is important in this type of operation, so we must take all necessary measures and not send confidential documents to an unknown person (ID card, RIB …). All security measures must be taken to avoid a scam and to find a serious person . It is in this context that lending platforms between individualshave seen the day. These are companies offering a connection between investors with money and individuals wishing to finance the purchase of a used car. The approach is as for a credit to a bank, that is to say that the individual will provide information about him and the amount he wants to get from the platform.

If the private-lending platform provides guarantees on the identity of individual lenders, it will also charge fees for linking and processing the file. These fees are simply comparable to those applied in the context of an auto loan requested through a credit institution. It is therefore advisable for motorists to compare the different solutions presented to them to make the right choices and especially to finance the purchase of the used car with the best possible conditions.