84 percent of new cars purchased in Mexico are through loans or financing; Only 16.2 are received in cash payment. You are given three options so that you can buy your first car.
Of the automobiles acquired through financing, 78.9 percent of the cars are through brand financing; 19.36% percent are bought by bank credit financing and only 1.7% by self-financing.
Here are three types of financing you can use if you’re thinking of buying your first car.
The use of a private car has become a necessity to ensure and streamline mobility to work, school or any activity you wish to undertake.
Inegi reports that 531,800 automobiles were registered in circulation in Querétaro; One unit for every four residents.
The development of private units is on the rise and you are definitely looking to buy a car because of the need for mobility in the state.
In the unit, 39.8 percent of the population use a private vehicle (car, truck, or motorcycle) as their main means of transportation to work.
Regarding the means of transport to reach the study site, 45.8 percent of the population uses truck, taxi, combi or bus as the main means of transport.
Getting your first car is one of the most important decisions you will make, therefore, you should keep in mind what and where you are going to use it, your ability to pay and your needs.
Three options for getting your first car:
We offer three credit options to help you buy your first car:
- Brand Financial or Concessionaire.
- Bank credit
- self funding.
Financing through branded or discounted financiers
They are loans given directly by dealers to customers who buy their cars. The dealership helps you get faster financing approval without the need for so much paperwork or paperwork.
You must research thoroughly about the rates and terms offered by them, as dealers charge the highest interest rates among all auto finance providers.
Dealer interest rates can be up to 5 percent higher than conventional loans.
Car finance by bank credit
If you have a bank account, it is easier to get credit so that you can buy your first car.
Banks offer low interest rates in other financial models as well.
This is a credit, so you should keep in mind that the institution will demand that you have an excellent credit history and that you can prove your income. It will offer you monthly amortization for five years.
If your income is not high enough, the bank will ask you to take a guarantee to answer for the credit in case you don’t comply with the payments.
Even though you are still making payments for the car, you are still listed as the owner and not the bank.
Auto financing
It is a system of commercialization of goods in which a group of people enter into an adhesive contract to periodically contribute money to a common savings fund that is managed by a service provider.
It is not a credit or loan, as it is a savings fund and when it is used only for the purchase of new vehicles, the units are distributed till the total agreed amount is paid, or it Distributed to the consumer who first collected their self-funded Adhesion Contract, but may also be awarded to the consumer who has the largest number of paid-in contributions at the time of distribution.
Tips for Buying Your First Car
- set a budget
- Determine how much you can afford monthly
- Establish your transportation needs
- research car model
- Find a Reliable Dealer
- take a test drive
- set the correct purchase price
- Know your financing options
- start the process
This should be taken into account when choosing the model of your first car
- what do you need it for?
- How are you going to use your vehicle?
- What’s the first thing you think of when you imagine the ideal car?
- How much can you budget in cash or monthly installments?
Car sales in Mexico in the first quarter of 2023
- 211,791 new and used light vehicles financed from January to March 2023
- 177 thousand 444 were new vehicles
- 34 thousand 347 were pre-owned
