As with many people who do not have a driver’s license or who have temporarily lost their use, buying a car without a license may be the only way to ensure their daily commute. What are the different financing options for this type of vehicle?
Buy a new or used car without a license?
This is the first question you will have to ask yourself if you plan to buy a car without a license. Indeed, the price is not the same: between 8,000 and 16,000 $ for a new model and between 1,000 and 7,000 $ for his second-hand counterpart.
This information matters because it will determine the amount to be asked of any credit agency. Another crucial question: do you have any input into this transaction? This will determine the amount to borrow and guide you on credit opportunities. Do not forget, in this calculation, the possible costs of registration, repair or technical control.
Possible credit solutions
Among the various options available to you, there are three main financing solutions for your car purchase without a license: car loan, bank loan and micro loan from CAF.
1 – The car loan
Auto credit, compared to a conventional revolving money reserve offered by a credit institution, generally offers more attractive interest rates. In order to get a first glimpse of the contracts available on the market, you can use an online comparator to give you information about the offers of several competitors in the sector and suggest you contact them.
On this type of site, you can compare the offers by testing several monthly repayment amounts, adapted to your situation, as well as the desired duration. The longer the credit spreads over time and the reduced monthly payment, the more expensive it will be in interest.
2 – The loan or bank credit
This type of solution can be requested directly from your bank, but it can also be offered at the car dealership where you want to buy your car without a license. It is often easier to obtain from the latter, since it is in your interest that your approach succeeds.
On the other hand, the interest rate may be higher than Internet offers. In this case, to find an advantage, you can try to negotiate the price of the vehicle and get a discount to compensate.
3 – The CAF micro-credit
This financing solution is recommended if one is in a financial situation that is too delicate to call on a bank or a credit institution. Indeed, the CAF has set up this system to help people experiencing temporary economic difficulties, with the aim of helping them to acquire basic goods, necessary on a daily basis or useful for professional reintegration.
Obtaining a “CAF loan” requires setting up a file that must gather several types of supporting documents: for example, proof that one is a recipient of family benefits or that one has a dependent child, for example .
Once obtained, this loan has the advantage of the reimbursement of small monthly payments, of at least 25 euros and can amount to 1250 $. This amount may allow the purchase of a vehicle without a license or will be a good complement to a contribution already available.
Credit usually comes with insurance. This, normally optional, is often a condition of acceptance in the argument of the organizations that grant or sell you credit. Inquire before subscribing.