Financing your car: how it works

Financing offers a solution if you can't (or don't want to) spend a large amount of money on a car all at once, but still need a city car, SUV or station wagon. You’ll read:

• What financing is
• What the advantages and disadvantages of financing are
• How financing a car works
• What the financing process looks like
• How to finance your dream car in 7 steps

 

What is financing?

With financing or a loan you pay a fixed amount per month (the monthly amount) for items or services you do not have enough (savings) money for. The monthly amount depends on a number of elements, such as the term, down payment, interest rate and final instalment.

• Duration: indicates how long the financing continues. Most financing lasts for 1 year or longer. The longer the term, the lower the monthly fee. But also, the longer the term, the higher the total interest cost of the financing.
• Down payment: an amount you can (not mandatory) deposit to reduce the amount to be financed. With a down payment, you can significantly reduce the monthly amount. Do you have a car to trade in? You could use the trade-in amount as a down payment on the financing of your new car.
• Interest rate: the amount of interest you pay on the amount financed.
• Final instalment: the amount of the loan that you won't have to pay until the end of the term. A final instalment allows you to reduce the monthly amount. A final instalment is not compulsory.

 

DTC: our independent financing partner

At Bynco we offer you the opportunity to arrange the financing of your car with the assistance of our partner Dealer Totaal Concept (DTC). DTC is an independent, expert and reliable party that arranges customized private and business (car) financing. Incidentally, you are not obliged to take out a loan with DTC to be able to buy a car from Bynco.

The pros and cons of financing a car

Pros

• You won't have to spend your (entire) savings to buy a car that is as good as new.
• You become 100% owner of the car.
• You pay a fixed monthly amount that suits your personal situation. The agreed monthly amount remains the same during the term, whether you finance the car for one year or for ten years.
• You always know in advance exactly what you're going to pay. There are no hidden costs or extra costs that you will have to pay later.
• At the end of the term you can decide to sell the car or trade it in for a new used car. The trade-in amount can then serve as a down payment on the new financing.

Cons

• With a car loan you only finance the purchase cost of the car and not the monthly costs for its use (road tax, insurance, fuel/energy) and maintenance. These expenses are added to the monthly amount for the car financing.
• Borrowing money costs money, after all you pay interest on the amount borrowed.

 

How financing a car works

DTC's car finance product is structered as follows:

• Duration in months, from 12 months to 120 months maximum, as desired.
• Purchase price: the amount of the car you would like to drive, - without deducting the down payment.
• Down payment: an amount you can contribute to reduce the amount to be financed.
• Financing: the amount - after deducting the down payment - to be financed.
• Final instalment: the part of the loan that you do not pay until the end of the term. You pay interest on the final instalment, as you do on the rest of the car finance.
• Interest rate: the interest rate you pay on the amount financed. The interest rate is determined when you take out the car finance and remains the same during the term, and therefore so does the monthly amount.

All of the components listed above will affect the amount you pay per month for your car. Do you want to know exactly how much your dream car will be costing you per month? Then use our calculator and immediately calculate the monthly amount.

Have you found your dream car and would you like to finance it? Then simply click:

• The 'Order this car' button. A screen will then be displayed with a summary of your order and two buttons. Then click on the bottom button that says 'Request finance'. Next, follow the step-by-step plan below to submit your request.
• The ‘Pay your car per month’ button. A screen with a button to start the funding request process will then appear. Follow the step-by-step process below to submit your application.
  
  

Here's what Bynco's and DTC's car financing process looks like

Bynco and DTC's car financing process is as follows:

7 steps to financing your dream car

Step 1

Fill in your personal details.

Step 2

Check your details in the overview. Do you want more security than 6 months Bynco warranty? Let us know your preference here. There are costs associated with extending the warranty period. These costs are included in the financing.

Step 3

Click the green button and configure your private or business car finance in the next screen. We have already filled in the purchase price of your car (including the costs for the complementary guarantee, if applicable). After entering the down payment and the final term, you will immediately see the monthly rate that corresponds to your car financing. Below that you will also see the amount you have to deposit in case of a down payment. Click on 'Apply' if you agree with the monthly amount(s).

Step 4

We're nearly there! Your application has been submitted to DTC, our financing partner. DTC will process the application as soon as possible and will contact you by phone in the short term to go over the application with you. So make sure you can be reached easily. Incidentally, DTC performs the quick check before the call to determine the feasibility of your car financing. If it is not feasible, DTC will indicate this to you and explain why. After this, the application process stops. If it is feasible, you will receive the status 'Provisional Approval' and the rest of the process will continue.

Step 5

Provide a copy of your pay stub, ID*, bank statement, and additional information, if needed, to your DTC contact as soon as possible. Your salary statement and bank statement may not be older than 3 months. In addition, the bank statement must show the debits and credits (rent, mortgage, salary, etc.) for an entire month. Please do not wait too long to provide these, as this will prevent the remaining process from taking longer than necessary.

*DTC expects expats to submit a copy of their passport or ID card and a copy of their residence permit.

Important!

Until your financing application is fully approved, the car you have in mind will remain available to other buyers. Reservation is unfortunately not possible. DTC takes this into consideration and tries to process every application as quickly as possible. On average, the entire process takes about 8 to 10 working days, but it will take less time if you provide the necessary documents (copy of your salary statement, ID card and bank statement) and/or additional information as soon as possible.

Step 6

DTC will then determine, based on all the data and documents you have provided, whether your financing has been fully approved. If it is not, you will be contacted to inform you of this fact, and to explain what caused this 'outcome'. It is also possible that DTC will request more information from you so that the car financing may still be approved.

Step 7

Yes, car financing approved! DTC will notify you as well as us so we can finalize the order for your car - and arrange a delivery date with you.

Good to know!

• Don't like your new car? Then you are entitled to return it within 14 days and choose to have the financing contract rescinded or refinanced to another car. In the case of a business car financing, there are costs involved.
• Because you become the 100% owner of the car in the case of a car finance agreement, you are free to sell it or trade it in before the financing contract expires. You are then obliged to repay the remaining amount of the financing - all remaining monthly instalments including, if applicable, the final instalment.

Want to know more about car financing for private or business use? If so, please contact our customer service team, we are happy to help. Call 030-207 42 20 or email info@bynco.com. Chat or Whatsapp is possible too!