Need money for a car? 6 loan tips for expats
If you live in the Netherlands and need a car for your work or home life, a personal loan from ABN AMRO might be just what you’re looking for. These six tips will help you find the car loan that’s right for you.
1. Use your savings (if you have any)
This isn’t really a loan tip, but it’s definitely worth mentioning. If you have enough savings, it’s usually more economical to pay, either wholly or in part, for the car yourself, as it saves you paying interest. Just make sure that you keep a buffer for unforeseen expenses, such as a move, your energy bills, insurance or repairs.
2. Clarity and certainty
A lot of people in the Netherlands take out a personal loan to buy a car. This is because you get the loan as a lump sum, and you can buy your car immediately. In addition, you know exactly how much your monthly repayments will be and how long you’ll be paying them, which gives you peace of mind.
You can take out a personal loan with ABN AMRO for any amount between €5.000 and €75.000.
3. Calculate your monthly expenses
Before you take out a loan, it’s important to work out if you can afford the monthly repayments. ABN AMRO has a handy online tool to help you do this. Don’t forget about the additional costs of running a car, such as fuel, insurance and road tax.
Check your monthly repayments with ABN AMRO's loan calculator
4. Set the term to suit your plans
The term of a loan is the period of time you have to repay the principal sum. Make sure you set the loan term for a period that is shorter than the period you expect to be using the car. This way, you won’t still be repaying the loan when you’re no longer using the car.
As an expat, you should also be aware that banks and credit providers will expect you to repay the loan before you leave the Netherlands, so take the duration of your stay into consideration when choosing the term. The English-speaking staff of the ABN AMRO Loans Desk can tell you more about this.
5. Additional repayments mean paying less interest
Your car loses value every year. If you find yourself with some spare cash, make an extra repayment on your loan. You’ll save money and reduce the risk of your debt being higher than the value of your car. You’re always free to make additional repayments with ABN AMRO at no extra cost.
6. Don’t forget about insurance!
Third-party liability insurance is compulsory in the Netherlands. This insurance covers you for damage you cause to third parties. It’s a good idea to take out fully comprehensive insurance if you want more peace of mind. In the event of theft or damage, the compensation you receive will be enough to repay your loan. Tip: ABN AMRO also offers car insurance!
ABN AMRO: Getting you on the road
So, whether you want to boost your buying power with a top-up loan or use a loan to pay the full price for a car, ABN AMRO can help. With their assistance, you can enjoy a driving holiday in Europe, a happier commute or simply an easier trip to the shops.