There comes a time when commute via public transport just no longer seems viable. This could be due to the distance to and from collection points, or the cost. Those who prefer a little more freedom and want to own their own set of wheels have the opportunity to do so without having to wait years for their savings. Auto loans provide the finance to allow consumers to get their own cars sooner. The BNP Paribas Auto Loans offering may seem a little slim, but on further investigation, we discovered an exciting surprise. Discover what this surprise is and how it affects this review.
See how Standard Bank Vehicle Finance compared in their review.
About BNP Paribas
Firm European roots and an impressive history make this one of the top game players when it comes to banking. In terms of asset value, BNP Paribas is rated as one of the biggest banks in the world. Although not French in terms of establishment, the impact it had in the French economy over the years have strengthened their French connection. In fact, it is considered a French bank today, despite its Belgian roots.
How To Get The Best Out Of The Auto Loan Finance Period
When it comes to auto loans, it’s easy to just accept the norm and pay the installments religiously on a monthly basis. Few consumers are actually aware that they have different options where finance is concerned, and this could positively affect the loan. Here are a few quick examples of what vehicle owners can look forward to.
Choose an Insurance Option That Relieves The Burden of Risk
Purchasing a vehicle is about more than just the repayments, as it also requires vehicle owners to be responsible. Accidents happen without notice which could leave owners at a massive disadvantage if they don’t have insurance. Not only do they run the risk of losing their vehicle, but they may also be responsible for damages to other vehicles, property, and even persons. With the right insurance, owners can rest assured that a large chunk of their responsibility is covered.
Opt for a Finance Period That Is Both Comfortable and Cost Efficient
It’s tempting to go for a car that is a little more expensive and opt for the longest term, but this can cost quite a bit as far as interest is concerned. Consumers are often recommended to look for a car that they can comfortably pay off in a three-year period to take advantage of lower interest over the total period. The lower the term, the lower the interest paid over the period.
Choose A Loan Option That Makes Financial Sense
There are quite a few car loan options on the market that include a straightforward loan without hassles, installment agreements, and leasing options. Not every option is suitable for every customer and the trick is to do a bit of research beforehand. For instance, those who opt for the leasing option should want to change their car at the end of the term or at least have a lump sum available to purchase the car. Discussing the options with a banker or even tax consultant should shed some light on the best option.
Consider A Down Payment
Consumers often try and get away with not having to put down a deposit, but it doesn’t necessarily work in their favor. Those who put down a deposit have the benefit of lower finance and lower installments. This then translates to lower interest paid back over the term.
BNP Paribas Auto Loans Product Offerings
Currently, the bank has this option for those who wish to purchase a car. The loan is styled as a personal loan and consumers can take delivery of their vehicle in no time thanks to the speedy processing of these types of applications.
- This is a simple loan option that tends to suit most customers.
- Customers enjoy a competitive interest rate on the product, which makes it quite affordable.
- The loan amount is based on the client’s need and repayment ability.
- Furthermore, there are no application fees for this loan type.
- Customers have the benefit of an online application process which provides them with almost immediate results in terms of a pre-approval.
- Finally, customers have the option to repay their finance early. This can be done in partial payments or in full without the hassles of early settlement fees.
Consumers who wish to save up for their car instead, should consider the BNP Paribas Savings range.
Energy Efficient Auto Loan
Customers have the chance to apply for finance that is determined by their repayment capacity. Furthermore, these loan types do not attract application fees.
- Those who apply online may receive an immediate pre-approval response.
- Customers have the option to repay their loan in full. They may also make additional partial payments without penalties.
- Finally, this loan is specifically designed for the purchase of an energy-efficient vehicle. It may also offer an environmental bonus.
First Vehicle Loan
This is a loan that is specifically designed for those between the ages of 18 and 29 who wish to purchase their first vehicle.
- The loan amounts range from EUR 760 to EUR 6,000.
- The interest rate is the same across the board, irrespective of the loan amount.
- Furthermore, customers may choose a loan period between 4 and 60 months.
- Finally, customers are able to make additional payments and even settle the loan without penalty charges.
Exciting Future Products on the Cards for BNP Paribas Auto Loans
Although the bank only sports a personal loan auto loan option, this may change in the near future. According to the website, the bank is looking to introduce installment agreements and lease agreements in the near future. This will make it more accessible to those who need a bit of diversity when it comes to their finance.
Lease Agreement or Hire Purchase
This option has the bank as the owner throughout the finance period. At the end of the term, the consumer is not automatically the owner of the vehicle. Those who wish to own the vehicle can do so after paying a pre-determined price. If not, consumers simply return the keys to the bank and look for their next vehicle. With this option, consumers may be restricted in terms of their mileage and if this amount is exceeded, they may be liable to pay an extra amount. This option is suitable for those who wish to pay power installments throughout the term. It is also ideal for those who may want to change their cars often. This type of finance agreement might carry penalties for early settlement.
This is one of the most popular finance options as it transfers ownership of the vehicle to the customer at the end of the term. The bank retains ownership of the car during the finance term and customers have various finance options where term and deposit are concerned. This type of finance is also popular for those who wish to finance assets other than vehicles. Customers may have to pay early settlement fees on this agreement type.
These loans are based on the personal loans model and will assist consumers to get fast and easy finance. The finance model does not provide the bank with ownership of the car, which means customers own the car from the start. This is also the ideal finance type for those who are not too concerned with putting down a deposit on their finance. Consumers can also repay this type of finance early without the hassles of early settlement fees.
BNP Paribas also has a range of current accounts. Read the full review here.
What We Like About BNP Paribas Car Loans
Like many of the other products at BNP Paribas, the car loans option is simple and provides a solution to a broad spectrum of needs. This is the ideal loan type for those who don’t want any hassles in terms of ownership and who wish to benefit from a competitive interest rate.
It also happens to be a great product for those who can’t afford a down payment. The finance type also allows consumers to pay back their loans faster without the hassles of early settlement fees.
There is a nice variety of loans that will suit different needs, despite these loans not following the traditional car finance structures.
Finally, the bank offers a teaser in terms of future products that will provide further options to clients. This makes it more appealing to a larger group.
What We Don’t Like About BNP Paribas Car Loans
There is nothing special about this loan as it works of the personal loans model. What helps is that it has different names and caters to different market segments, which will allow customers to identify with it a little easier.
The new products are not available yet, which means customers still have limited options.
Critical Reviews Rating BNP Paribas Auto Loans – 9 of 10
The products on offer is a decent representation of what customers will want in a car loan. Although there is no traditional finance structure available, we are encouraged by the fact that the bank will extend their range in the near future. It is also helpful to know that customers who wish to manage their debt more effectively have the freedom to do so. This means they are able to pay additional amounts to their loans and even settle them without the worries of early settlement fees.
As a product range, it doesn’t disappoint. It represents the bank and the customer base fairly and offers simple and effective finance. This type of finance also provides a healthy turnaround time as the contracting process is simple. Customers enjoy the benefit of a pre-approval which allows them to shop around for the perfect vehicle.
Finally, the interest rates are not too steep as is usually the case when the bank doesn’t have the benefit of ownership of the asset to mitigate their risks. Customers enjoy great access to finance without odious conditions. Although we can’t provide a perfect score due to the lack of traditional vehicle finance products at this stage, we are happy to provide a reasonable score based on the existing product merits and the knowledge of future expansion.
BNP Paribas offers a great insurance range, which is good to consider with the purchase of a new vehicle.