Cash loan vs, car loan – which is better?

For some time, you can see an interesting trend regarding loans for car purchases. It turns out that some banks promote typical cash loans with vehicle financing.

Such “cash”, unlike traditional car loans, does not have restrictions related to the maximum age of the car. An additional advantage of a cash loan in the context of buying a car is the lack of troublesome security measures (related to, e.g. pledge, misappropriation or assignment of AC policy).

We decided to check whether, in terms of costs, “cash” could also be more competitive than standard loans for car purchases.

A typical car loan may not necessarily be cheaper

A typical car loan may not necessarily be cheaper

The cost comparison of cash and car loans is best done using a realistic example. Such an example, taken into account by Frankenstein analysts, involves the purchase of a five-year used car with a value of USD 25,000.

The bank’s client wants to finance the entire transaction with the help of borrowed funds and repay the debt within 60 months. The two tables below show good cash and car loans that can meet the needs of an example car buyer.

After comparing the sample installments of loans, it can be seen that the products intended solely to finance the purchase of the car do not have any cost advantage. Installments of such car loans oscillate at the level of USD 520 – USD 539.

The same level of installments for example cash loans is USD 492 – USD 542. This result indicates that typical cash loans. despite the lack of safeguards for the purchased car, they may not necessarily be more expensive.

The situation described has, among other things, greater competitiveness of the cash loan market (compared to the narrow car loan offer).

Good Finance has a good car financing offer


When referring to the topic of cash loans, it is worth taking a closer look at the proposals that are a good choice for people buying a car. In the table above you will find three well-known loans that regularly appear in the Frankenstein rankings.

After checking the installments, it turns out that these loans have been overtaken by the new Good Finance proposal. This French bank has recently started an interesting promotion of its cash loan.

We are talking about exemption from the costs of the preparatory commission for those persons who had not previously borrowed funds from Good Finance.

Zero commission is provided for clients applying for loans by the end of 2018, who additionally set up a ROR, borrow funds for a maximum of 60 months and set the option Automatic repayment of installments from the account.

The fixed interest rate of 9.99% and a zero commission for granting the loan.


The fulfillment of these conditions results in very attractive financing conditions – a fixed interest rate of 9.99% and a zero commission for granting the loan.

When making a reference to the Good Finance offer, it is worth adding that the said bank can finance even very large needs regarding the purchase of a car. The maximum limit for a cash loan is USD 255 550.

New customers who need a much smaller loan (up to USD 3,000 for a maximum period of 12 months) can take advantage of another Good Finance promotion.

We are talking about a completely free loan that is granted to owners of a personal account at Good Finance. Learn more about Good Finance loan.

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