Auto credit with mechanical insurance: what to think about it? – Car Loan

Taking out a car loan with mechanical insurance is an issue that we are increasingly faced with. The dealers who historically created the market, the major credit organizations and insurers responded. The market has developed a lot with the opportunity and the sale of individual to individual, where a car loan with mechanical insurance makes the most sense.

Auto credit with mechanical insurance: new car

Auto credit with mechanical insurance: new car

Objectively, there is no reason to take a car loan with mechanical insurance for the purchase of a new car. Indeed, the manufacturer’s warranty generally applies at least two after the sale. However, the duration of the manufacturer’s warranty and its coverage remains variable from one manufacturer to another.

IMPORTANT : the manufacturer’s warranty should not be confused with the warranty against hidden defects, which is a legal obligation of the seller. To put it simply, the latter covers faults that everyone was unaware of at the time of the sale. It is the legal guarantee of conformity. It is this guarantee that generates the mass recalls. But this is absolutely not the one in question when looking for a car loan with mechanical insurance.

In addition to this legal warranty, manufacturers generally “offer” an additional commercial warranty. This guarantee is variable according to the manufacturers. It generally covers mechanical parts that can drop without being due to wear. It does not necessarily cover the workforce and generally lasts from 2 to 7 years.

New car recommendation

Taking a car loan with mechanical insurance as part of the purchase of a new vehicle does not seem really opportune to us . The legal warranty combined with the manufacturer’s warranty seems sufficient to us. However, you should not hesitate to negotiate with the garage if a disaster occurs and the care seems insufficient.

On new auto credit as such, you really should not hesitate to compare and then negotiate the best auto credit rate. We have put all of our advice together in our article on new auto loans. To get the best auto loan rate from the largest financial organizations, simply use our auto loan comparator. Our rankings give the best rates and allow you to get a first response in principle online without obligation.

NB: Since the Hamon Law, it is absolutely not compulsory to have your car maintained in a dealership of the brand so that the manufacturer’s warranty always runs. Unfortunately, many sellers still tend to believe this. It is also for this that they allow themselves to sell so many LOAs as an equivalent of car credit with mechanical guarantee for a cheap monthly payment, whereas in general, it is much more expensive than a conventional car credit.

Car loan with mechanical guarantee: used car loan

Car loan with mechanical guarantee: used car loan

In this area, auto loan offers with mechanical insurance have multiplied. In fact, dealers have lost market share on used vehicles. Sales of used cars from individual to individual have multiplied with the rise of websites like Le bon coin or La Centrale.

But buying from individual to individual necessarily brings a risk. Not that the former owner didn’t take care of the car, but simply because the cars break down at one point or another. It therefore makes sense to take out a car loan with mechanical insurance.

Second-hand credit is mainly distributed by credit organizations like Yoabank or Franfinance, it is also now they who offer mechanical guarantees. The automobile financial subsidiaries, whether Diac or Credipar, have lost ground on the second-hand financing market.

On loans as such, our survey of used auto credit has shown that, logically, it is the specialized organizations that offer the best rates and accept the most applications. But what about mechanical guarantees?

Mechanical guarantee of a used car loan

Mechanical guarantee of a used car loan

First of all, it should be made very clear that credit insurance is not mechanical insurance . Auto credit insurance will cover all or part of the repayment of the credit in the event of a loss, death, total or partial disability or even unemployment, depending on the guarantees taken out.

A mechanical guarantee is an additional insurance to the used car loan which generally includes:

  • financial support for labor and repair of parts
  • assistance giving right to the loan of a vehicle

Please note : not all parts are covered depending on the age of the car. In general, are supported at least: the low and high engine, the gearbox, the casings, the turbo, the alternator, the starter, the steering system …

So taking a car loan with mechanical insurance is quite possible in the case of buying a used vehicle. But it is a used car loan + mechanical insurance . To find the best-used car loan, just use our credit comparator.

Finding the best mechanical insurance isn’t easy. Indeed, conventional insurance comparators do not offer anything serious and try to reforge their car insurance… In addition, it is always very difficult to compare one insurance to another, as they can vary the conditions. We have selected three proposals which will make it possible to obtain a car loan with mechanical guarantee by taking the two independently.

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