Are these profiles eligible for a car loan?

As with any loan application, car loans are obtained according to specific criteria. Although each credit provider imposes its own conditions, the majority have common points. This means that certain profiles are always excluded, regardless of the bank or institution where they apply for credit. Before considering taking steps to obtain a car loan, it is therefore normal to ask yourself if your profile is eligible. In this article, discover the profiles that can benefit from a car loan.

In this article

, discover the profiles that can benefit from a car loan. Whatever

the profile, the simulation remains an important step. When you want to calculate the amount of credit for your car, the easiest way is to use an online simulator. There are many of them on the internet and they generally work in the same way. You will have to take into account several criteria to estimate your borrowing capacity.

Price of the car

In this field, indicate the price you expect to pay for the car. To estimate new car prices, start with the list price of the vehicle. Then subtract any savings from dealer negotiations or manufacturer rebates.

For used cars, estimating the selling price is a little trickier. You can start with the seller’s asking price. This doesn’t mean you can’t negotiate. To get an idea of a fair price, use online price guides. Also, don’t hesitate to check local online classifieds.

Interest rate

There are several ways to determine the interest rate you should enter. Simulators usually offer options that display average auto loan rates. You can also check rates from online lenders. If you are pre-qualified or pre-approved for a loan, simply enter the rate you are offered.

Car Loan Term

The next step is to enter the term of the loan. This is more accurately the amount of time you have to pay back the loan. Car loans are usually in 12-month increments, with common terms being 24 months, 36 months, 48 months and 60 months. The rule is simple: the longer the loan, the more interest you will pay.

Once you have entered the loan details, the car loan simulator automatically displays the results. This means the amounts in euros for :

  • the total monthly payment: this is the amount you will pay each month for the duration of the loan. You should know that part of each monthly payment is used to pay off the loan. The other part is for interest,
  • Total principal paid: This is the total amount you will borrow to buy the car,
  • total interest paid: this is the total amount of interest you will have to pay over the life of the loan. The longer you take to pay back the loan, the more interest you pay.

Add up the total principal paid and the total interest paid to find out the total overall cost of the car.

car loan, online simulation

Get a car loan

with a fixed-term contract

It is

certainly easier for an employee with a permanent contract to obtain a car loan. However, fixed-term contracts are not completely excluded from the offer. Indeed, it is quite possible to obtain a car loan with a fixed-term contract or a temporary job. The reason for this is simple: other criteria are also taken into account when granting a car loan.

Credit score

Any lender will check the applicant’s credit score before accepting any type of loan. If a temporary or fixed-term employee has a good credit rating, this will work in their favor.


The applicant’s income will obviously affect the amount and type of loan available. Again, as with permanent employees, the higher the salary, the more likely you are to be able to borrow. For example, a person making minimum wage will never be offered as much as a worker earning more than twice that amount.

Outstanding debts

If you have other loans, this will necessarily affect the amount you can


The lender has to be sure that you can repay the car loan. If you have other demands on your income, it is therefore likely that they will want to lend you a smaller amount. Existing debt can therefore affect your credit score.

The deposit

you have


start with

The fact that you have a deposit and its amount will also influence the lender’s decision. The higher the percentage of the price you can afford to pay up front, the better your chances of getting financing. More importantly, you will be able to get a good interest rate.

Real Estate

Do you have a house, apartment or other real estate in your name that can be used as collateral? The bank or financial institution you deal with is more likely to accept your application for a car loan, assuming you have a good repayment record. Other lenders also consider this as a factor in your favor.

profiles for obtaining car credit

Finance a car on credit while you are a student

Are you a

student? The doors to car credit are not completely closed to you. In fact, it is possible for you to take out a car loan under certain conditions.

Have a solid banking history

Your file proves that you can repay a loan, even as a student. To do this, your spending and the way you manage your accounts must be impeccable. For example, avoid overdrawing your student account at all costs.

Save for a down payment

The more money you save for a car down payment, the less you will need to borrow to buy a car. Starting with a smaller loan means your monthly payments can be more affordable. Plus, some student lenders require you to make a minimum down payment of between 10% and 25%.

Consider a loan co-signer

Struggling to get a car loan because you’re a student? You may be able to get one if you have a co-signer. A co-signer is a third party who agrees to pay off the loan.

You can’t afford a loan if you can’t afford it. Which means his credit is at stake as much as yours


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