Zero rate auto credit: how it works?, What are the cars that can benefit from the zero rate loan in 2023? |

What are the cars that can benefit from the zero rate loan in 2023

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How to buy a car with a rate at rate 0 ?

The information opposite is general and provided as an indication only. They are only intended to give an overview of certain types of financing. This is not a description of Finfrog’s activities. Finfrog’s responsibility cannot be engaged on the basis of this information, which should in no case be considered as advice. Finfrog is a crowdfunding intermediary. Consequently, loans are funded by individuals and not by Finfrog. Finfrog does not grant directly from credit, but intermedia of loans between individuals.

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What is zero -rate car credit ?

THE zero -rate car credit is part of the family of Consumer credits . This loan is affected only to buy a new vehicle, new or used. It therefore works differently from Personal loan , whose amount of money granted can be used freely by the borrower, without proof to be provided to the bank.

When we talk about zero rate, it means that The taeg is zero , So the borrower has No interest to pay . As a reminder, the TAEG represents the rate practiced by credit organizations and the bank to This type of credit . On the other hand, loan from the bank may require A personal contribution .

A zero -rate loan offer is only offered by automotive professionals , namely dealership and the manufacturers . But why ? In general, their goal is to sell a stock a specific car model. You will understand, this type of offer is only temporary , For a few days or a maximum month.

THE cars affected by these offers are most often new cars or reconditioned used models. It may happen that organizations offer a t to credit close to zero for the financing of an electric or hybrid vehicle.

Knowing that the borrower has no interest in reimbursing, Subscribe zero rate credit remains the most advantageous solution for Finance a automotive project . Often, the dealer negotiates in advance with a physical or online bank wishing to participate in the offer. Clarifications, however, that the borrower must reimburse the amount of monthly payments , which depend on the time of reimbursement of the loan.

How to buy a zero -rate car ?

Subscribe a 0% automobile financing offer is subject to certain conditions. Here they are :

  • The borrower must not have any other loan in progress;
  • The reimbursement time for this vehicle credit is a maximum of 2 years;
  • Most organizations require taking out borrower insurance (at your expense);
  • The request for auto financing is subject to file fees;
  • The bank can request a personal contribution, the amount of which varies between 15 and 30%.

In addition, to analyze your situation and Your reimbursement capacity , The bank will ask you for several documents. Each proof provided you will increase your chances to obtain a favorable opinion for this automotive financing:

  • Your last tax notice;
  • Your last salary slips (at least 3);
  • Your latest account statements.

Did you know ?

You can Reduce the cost of your borrower insurance (in the event of disability or death) by comparing the different offers available online. Indeed, nothing obliges you to take out the insurance offer offered by the car loan organization.

Advantages and disadvantages of 0% rate car credit

THE main advantage of zero -rate car loans is that this is a good opportunity to finance a car purchase. As the rate of the taeg is zero, the borrower has No interest to be reimbursed .

However, the term of the loan being limited to two years maximum , The amount of each monthly payment is high. It is therefore advisable to have a good borrowing and reimbursement capacity for this credit. Do not hesitate to make a Online simulation Before you embark on this project.

In addition, due to this advantageous offer, the customer has Less margin to negotiate The price of the car down.

How to get a CAF loan for a car ?

In reality, there is not really car credit granted by CAF . Indeed, this organization is not intended to offer consumer credits. His goal is to help the most modest families .

In this sense, CAF can help Buy or repair a car . The condition to benefit is that this expense is necessary for your professional integration .

To find out more, contact the CAF of your place of residence.

What are the other financing solutions for an automotive purchase ?

In addition to zero -rate car credit, several solutions exist for help you finance this project ::

  • The personal loan : up to 75,000 euros to be used freely, without proof.
  • Authorized auto credit : the money paid should only be used for the financing of the car.
  • Renewable credit : this contract is ideal for finance the purchase of several vehicles or if necessary cash in the medium / long term.
  • Personal microcredit , up to 5,000 euros. This loan contract can be used to finance a used vehicle.

For find the best solution Depending on your budget and expectations, do not hesitate to simulate online offers. This is free and will allow you to refine your project.

What is the average price of vehicles ?

THE project to buy a vehicle involves considering different costs in addition to the purchase price. First of all, it goes without saying that new vehicles are always more expensive than those used. The cost of this automotive project will also be directly impacted by the Choice of fuel ::

  • essence ;
  • diesel ;
  • electric;
  • hybrid;
  • or rechargeable hybrid.

In addition, here are all the costs to be provided for your future car ::

  • The cost of auto insurance (to the third party, to the third party more or all risks): Know that this insurance contract is compulsory to circulate legally in France;
  • Maintenance costs : between 1,000 and 1,800 euros;
  • Various costs : parking, the price of road tolls, cleaning, administrative formalities (certificate and license plates).

The figure: 26,000 euros

According to several studies, the average price spent by Europeans for the purchase of a new car is to 27,500 euros . Of course, this total price varies strongly from one country to another. In France, it is 26,000 euros on average.

What are the cars that can benefit from the zero rate loan in 2023 ?

A couple choosing a car benefiting from a zero -rate loan

From 2023 and under certain conditions, you can benefit from a zero rate loan for the purchase of a car. Obviously, this only concerns the acquisition of a clean vehicle from January 1, 2023. This measure has become possible thanks to the application of the decree dating from April 24, 2022. You want to buy a new car soon ? In this article, we tell you everything about the zero rate loan and if you are eligible !

To whom the zero -rate loan is addressed ?

On paper, the zero -rate loan remains particularly interesting. But it is imperative to fulfill specific conditions. If you are not in the criteria mentioned by the government, then find the best car credit thanks to Better. With a quick and free online simulation, you can easily find a loan adapted to your needs and your situation.

Regarding the 2023 zero rate loan, it is aimed at both professionals and individuals. The first condition is based on living in a ZFE-M or working there daily. For the moment, the system remains experimental, but it should be put in place for a minimum duration of two years.

The ZFE-M correspond to areas with low mobility emissions, compulsory from the moment when the agglomeration exceeds 150,000 inhabitants. For the time being, 142 French cities have already adopted the system.

The zero -rate loan can only be used when you acquire a vehicle that does not reject more than 50 g of carbon dioxide (CO2) per kilometer. Thus, the zero -rate loan does not concern cars with heat, petrol or diesel motor. You will understand, only 100 % electric and rechargeable hybrid cars are affected by the zero rate loan.

Similarly, be aware that this device can also be used as part of a rental with purchase option (LOA) or a long -term rental (LLD). To take advantage of it, the contract must imperatively be signed for a minimum duration of two years.

What is the maximum amount of zero rate loan in 2023 ?

Unfortunately, the loan does not concern all natural persons. Indeed, your tax ceiling must not exceed 14,000 euros. As a legal person, you must have micro-enterprise status.

The acquisition of a private vehicle should not exceed the limit of 45,000 euros, against 60,000 euros for a light utility. Also note that the amount of the loan granted must never exceed the purchase price of the car by taking into account the deduction of aid paid by local authorities and by the State.

Regarding the reimbursement methods, it must spread over a period of less than 84 months, or seven years.

A customer with low income that comes from

A loan granted only for modest households

As explained previously, to be entitled to zero rate loan, your reference tax income per share must not exceed 14,000 euros. In order to find out if you can benefit from it, take your latest tax notice, because this aid is aimed above all to the most modest households wishing to acquire a clean vehicle.

On the side of legal persons, there are only the micro-enterprises which are concerned, that is to say the structures with a turnover not exceeding 2 million euros per year and employing less than 10 people. Otherwise, it is impossible to take advantage of the zero -rate loan.

Whether you acquire an electric vehicle as a legal or natural person, the loan amount will not be able to exceed 30,000 euros.

For the moment, the project will be applied on an experimental basis. In other words, it will indeed be deployed from January 1, 2023, but for a period of only two years. This first experience will obtain in return, an evaluation report and the Ministry of Transport will judge whether it is useful or not to extend the measurement.

To benefit from the 0 rate loan, remember that you have to work or reside in a ZFE. Today, only a few major French metropolises are affected by the measure, notably Grenoble, Lyon, Strasbourg, Toulouse or Paris. However, the areas should multiply in the coming years, as they will be imposed on the agglomerations of more than 150,000 inhabitants from December 31, 2024, according to the climate and resilience law.

What to remember from zero rate loan in 2023

Undeniably, the zero rate loan is a financial boost favorably welcomed by the most modest motorists and by certain companies. Especially since the prices of rechargeable electric and hybrid vehicles tend to fly. However, the conditions of eligibility are particularly strict and as a result, its application remains limited. In any case, the Ministry of Transport will take stock of this experience after the two years of practice.

How can I take out a zero-rate car loan ?

Yes, zero -rate car credit exists ! It is even a formula highly practiced by car dealerships. If some are impatiently in these ephemeral sales, others do not even know their existence. Focus on this advantageous mode of financing but whose cogs must be known.

– zero -rate car credit allows you to buy a car, very often new, without having to pay interest on the amount borrowed ,
– The subscription conditions are very strict: do not have a credit in progress and have a personal contribution between 10 and 30 % of the purchase price ;
Take the time to compare promotional offers for manufacturers but also to simulate your online car credit thanks to borrowed.

Zero Auto Credit

Updated on February 06, 2023

by Saida Boukhers – Consumer credit manager

Download this guide

  • Zero rate auto credit: a nice call product
  • A zero -rate car loan. Under what conditions ?
  • Compare auto credit offers at zero rate

Zero rate auto credit: a nice call product

Zero -rate car credit, that makes more than one buyer dream ! It has nevertheless become, thanks to an ultra-competitive automotive market, a quasi-norme in most of the vehicle purchasing contexts. This 0 % rate car loan is not just a promise: it’s a reality. It is granted that by the automotive dealer with which you are committed to taking out a loan to finance your future car.

This zero -rate car credit offer is attractive, but also Supervised by legislation. Indeed, since the French law prohibits sale at a loss, know that interest will in fact be supported by the seller, in this case, by the brand or by the concession.

A zero -rate car loan. Under what conditions ?

First of all, be aware that only car manufacturers and dealers can offer you a zero -rate car credit. Banks cannot. But beware, to benefit from it, you must meet very strict conditions.

  • Have no credit in the process. This is the number 1 condition to claim zero rate car credit. In fact, if you have a mortgage or a consumer loan in progress, do not try to access this offer, it will be automatically refused to you.
  • Subscribe to borrower insurance. Be very vigilant on this aspect. In addition to the case costs that you will have to pay, you must also provide the cost of borrower insurance. You are free to choose which insurer you want to take it so do not hesitate to compete.
  • Refund the car loan to a very short duration. And who says short duration says high monthly payments. Indeed, some dealers require that the 0 % car credit will be reimbursed within two years. So make sure you will be able to assume such monthly payments and that you are not likely to place yourself in over-indebtedness.
  • Have a contribution of 10 % to 30 % of the price of the vehicle. This is one of the specifics of the zero -rate car credit. Without this personal contribution, your request is likely to be refused.
  • A careful study of your file. In the same way as any other loan subscribed to a bank, the concessionaire will analyze your financial situation before accepting, or not, your request for zero rate credit. You will then have to provide documents on your identity and your income: identity document, proof of address, last salary slips, tax notice, account statements … Nothing will be left to chance to ensure that you are in measure to repay your loan.

Auto credit at 0 % is therefore not adapted to all needs, nor to all budgets ! You can also find out about credit possibilities by comparing car loans from the various banks to find out which one will offer you the best auto credit rate adapted to your specific situation.

Compare auto credit offers at zero rate

To finance the purchase of your vehicle, the best option undoubtedly remains to compare all zero rate auto credit offers practiced by car manufacturers. This makes it possible to negotiate with commercial advisers of all brands, and to know in particular whether the amount saved by the interest at zero auto credit is equivalent to the discount that you really hoped for by selling your former car to the dealer. But for that, sales should take place at the same time, which is not often the case. Indeed, These ephemeral sales are rare, You have to fall on it at the right time.

But if you are looking to acquire a vehicle, new or second -hand, nothing prevents you from comparing car credit offers available on the market. Competition of banks and financial organizations remains the same option for lower the cost of your car loan and benefit from the best rate. Borrowed provides you with several simulation tools to help you find the auto credit offer that really corresponds to your situation.

Take advantage of our car credit expertise !

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