Being able to benefit from a car 100 USD per month would be ideal. But do you think this is really possible? And even if it is possible to get a new car at 100 $ / month, is it really a cheap car loan? At what rate is the car loan behind this offer?
Car 100 USD per month for a new vehicle
Let’s start right away with the most complicated: get a new car loan at 100 USD per month. As much to tell you right away, there are some who do not lack imagination to try to sell their product! Auto credit has been revolutionized by this type of offer. But at 100 USD per month, we will have to be wary.
First, to lower the price of monthly payments (whether for a new car loan or a rental), you have the option of making a contribution. Often in advertisements on the LOA (rental with option to buy) it is not very clear because we are talking about the first increased rent, but it is neither more nor less than a contribution. It is so much less to finance and that makes it possible to lower the monthly payment of the car loan. A car at 100 USD per month is therefore possible with a contribution but in order not to distort the comparison, we started on the principle of a credit without contribution or a rental without contribution.
Second trap to avoid: check what is planned at the end of the LOA or LLD (long-term rental) contract.
The LOA trap with no credit rates
For the LOA, the amount you will have to pay if you want to buy the vehicle at the end of the contract will be determined from the start. To sum up, when you buy a vehicle in LOA, you actually pay “a contribution + 100 USD / month (or other amount) X rental period + final purchase option”.
As we demonstrated in our comparison of auto, loa or lld credit, it is 95% more expensive to go through an LOA or an LLD, and not just a little! The car credit rate recalculated on an LOA is often around 6 to 7% fixed taeg rate ! Where a real credit 100 USD per month for the purchase of a new car will rather be around 3%.
Whether or not you keep the vehicle at the end of the contract and for the LLD is even worse.
So a car at 100 USD per month by an LOA or an LLD, it is possible but it is more expensive than a car loan with the additional risk of having paid for nothing if you do not keep the car. And the worst part is that the equivalent rates in LOA or LLD which are much more expensive than those of the credit of a car 100 USD per month are not communicated and it is legal *.
Find a cheap car
Last step: is it possible to find a car 100 USD per month for a new vehicle?
First of all, before finding a cheap car loan, one should aim for an inexpensive car. To write this article, in all transparency, we took public prices, but obviously, do not hesitate especially to negotiate. For 8000 USD, we found a Dacia Sandero, a Renault Twingo, Suzuki Alto… and obviously we have the best Dacia, Diac, Suzuki credit…
The cheapest car loan we have found to stay for a reasonable period of time is a loan of 8,000 USD over 84 months at a fixed APR rate of 6.30% for a monthly payment of 117.35 USD per month for a cost of credit of 1857, 40 USD in the end. It is not quite a car 100 USD per month but it is not far!
Occasion: Car at 100 USD per month
So there, it is much easier to get a car 100 USD per month because the starting price is much cheaper than on new.
For the negotiation of the price of the car, there is not much we can do for you, it is not our specialty. We can simply recommend that you compare as many offers as possible, as this is the best way to get an idea of the market price. This is what we do for credit, including used car credit.
The only advice we can give you is to be more than wary of LOA or LLD offers on the occasion because at the end of the contract, your vehicle is no longer worth much. However, if you were given a fairly expensive purchase option at the outset, it is to ensure that you do not buy it back. If they are sure, they can give you a rental whose equivalent in credit rate will be very expensive!
Conclusion, to get a car 100 USD per month for a cheap occasion, take a loan at the best rate and play for the duration of the credit to lower your monthly payment.