Auto loan: the differences between LOA and LLD

Long Term Rental (LLD) and Lease with Purchase Option (LOA). Their names are similar, they deal with car rental but yet there is a difference in size. The Credither Guide presents these two solutions.

Long term rental

It is simply a rental car, pure and simple. In other words, you rent a car for a long time, then return it at the end of the contract.

The advantages of the car LLD ?

  • The rent does not move for the duration of the lease;
  • The subscription of packs including rent, auto insurance and maintenance is possible;
  • You do not have to worry about selling the vehicle;
  • You are certain to use a recent vehicle.

Conversely, the LLD is also a solution that has drawbacks:

  • a mileage is fixed and can not be exceeded, under pain of penalties;
  • no possibility of buying the vehicle definitively, you will have to return it;
  • in case of breach of contract, compensation may be claimed by the rental company.

Rent with option to purchase

Rent with option to purchase

Solution used in particular for the rental of a vehicle, the LOA auto has similarities with the LLD, however with a “small subtlety “: the tenant can buy the property at the end of the rental period. If this is the case, he must pay the residual value of the contract defined in the contract.

The LOA auto is offered by dealers and financial organizations. It is therefore an ideal solution for drivers who can not buy a car immediately or who are reluctant to become owners.

The transaction includes different fees:

  • a personal contribution is required by the LOA company;
  • auto insurance must be underwritten;
  • the registration of the vehicle is the responsibility of the driver;
  • the same for the maintenance of the car;
  • charges related to a possible mileage violation can be applied.


How to Reduce Credit Card Limit?

Credit card usage is widespread in the world and in our country. According to the statistics, our country is also listed among the countries with the highest credit card usage . When this happens, the fact that credit card usage is widespread shows that credit card borrowing is high according to statistics. If credit cards are not used regularly, they may come with payment problems. What we need to do here is to use our credit card limit as planned. Reducing credit card limit by doing income-expense analysis will be a very useful way for you. So how to reduce the credit card limit? Is the credit card limit reduced immediately? What should be done to reduce the credit card limit ? You can find answers to all these questions by reading the rest of our article.

What should be the credit card limit?

The credit card limit is automatically determined by the banks according to your income balance . You can increase your credit card limit by showing additional collaterals if you wish , but we certainly do not recommend this method because you will require more limits from your revenue model, which will also cause payment problems in the future. We will give you more information about how to lower your credit card limit .

You can reduce your credit card limit in several ways. Nowadays, where the technology is widely used, credit card limit reduction is a very simple method. Please note that you may need extra information to upgrade !

Regular and planned expenditures are the basis of conscious consumption. If you set your credit cards and limits according to your income, you will not have payment problems and you can keep your credit score high.

How to Reduce Credit Card Limit?

There are many ways to reduce your credit card limit. We will tell you all of this in our article. First, you can contact your individual bank advisor by going to the branch where your credit card is connected. You will receive a request to lower your card limit and you will see that your card limit has decreased within the next few days. Your bank does not ask for extra information and collateral while lowering your card limit . However, in the same way, when you apply to raise your credit card limit, the bank may ask you for additional information and collaterals through your current bank record. So how to reduce credit card limit by other methods ?

Another method is internet banking . You can also lower your credit card limit without going to the bank branch. With the help of telephone banking, mobile banking and internet banking, you can reduce your card limit from the relevant menus on the internet . You can proceed from the Decrease Credit Card Limit menu in the credit card information and credit card settings menus. However, some banks do not offer you such a setting in the credit card settings section. If you do not find the ability to reduce your card limit in this menu, contacting your bank will be the most logical method.

Automatic Limit Increase Feature Can Be Enabled!

Apart from all these, it will be in your best interest to turn off the automatic limit increase feature of your credit card. With the automatic limit increase feature of your credit card, the bank can raise your credit card limit without asking you. When this is the case, you can shop by saying that you have a limit without knowing and you can enter the expenses you do not plan, you may have difficulty in paying after the cut date. You can also turn off the automatic limit increase feature by calling your bank, you can permanently turn off the automatic limit increase feature in the credit card settings and limit settings section of internet banking.

If you have lowered your credit card limit through the bank, you can turn on the automatic limit increase feature to increase it again in the next 3-4 months. This feature can be enabled if you want to increase automatically when your credit card limit is low, but it is definitely for your benefit to follow your card limit periodically. Thanks for reading our article, you can send us all the questions you have in mind in the comments section below. How to reduce credit card limit?


Car loan with residual rate

A popular form is the car loan with leftovers, also known as balloon financing. A popular form is the car loan with leftovers, also known as balloon financing. Car Loan Car Loan With Last Rate Car financing with last installment.

Loan with balloon rate

Loan with balloon rate In ten years, you only pay off the deductible amount, so that your free liquidity position is reduced. 000 with ten years’ notice and the debt service to be provided. When financing a balloon, it is always important to note that the contract states that a follow-up financing will be completed – otherwise the vehicle will be returned.

Balloon Rate Loans However, deficits can arise with vehicle financiers on favorable terms. Car loan, then of course it becomes clear that the model is the same, but not everyone can handle this sudden economic burden. SAMy representative of Intrasavings car loan. Compared to the three-way financing, it limits an amount due immediately after the end of the term.

Car loan Calculate with balloon rate, with all the details about your tips, it works reliably.

Automatic loan rate adjustment with calculator

Automatic loan rate adjustment with calculator

The target rate is also referred to by banks as the final sentence. The interest rate is the final rate. As a rule, it is payable at the end of the vehicle’s loan term. The target rate is usually a very high final level, but this makes it possible to agree very low monthly installments over the whole duration. The goal set is usually very high. In a three-way financing, the borrower can choose to return the vehicle, complete a follow-up financing, or make the final payment.

In the search for the best contact for your car loan you support our professionals. The target or final installment for vehicle purchase is the installment financing, which is due for payment at the end of the entire term. For better market orientation, according to various consultants (financial tips) a credit calculator suffice. Most often, the borrowing rate can be entered or determined.

The services provided by the Palestinian car rental company show that they focused on, among other things, automotive financing. In classical and household financing, the consumer chooses a classic as a loan or a flexible budget financing. With the help of Decoma Autocare vehicle financing and security is projected by the house bank and adapted to the wishes of the interested party.

It is also possible to opt for repair financing if a vehicle is already available. These are the cheapest new car models after “Auto Bild”. A target agreement is particularly advantageous here: 9850 euros: Panda bear fund: 9090 euros: The monthly fees (tariffs) for drivers are the lower, the more expensive the final sentence for the purchase of a car is.

But again, one has to say that usually after four to six years, a very high payout must be made. It should therefore be carefully examined which target rate is most appropriate. The Somerbank customer has the choice between a loan and a car loan at a final rate. According to the National Bank, consumers can negotiate flexible and customized maturities.

The approval decision usually falls within a few moments. ZestBank, like many other banks, is increasingly relying on the Internet. As a rule, a deadline of 12-84 months is agreed for a net loan amount of EUR 2,000 to EUR 5,000. In addition, you will be regularly informed by us about the latest news around the topic of car loans.


Car Loan – 5 Tips to Save on the Purchase of your New Car

The “Salon conditions” that the dealers unpack in January and February are the signal for many to buy a new car at the best price. But is this also the best period for purchasing your new car?

Gocar compared the selling prices of the most sold models during the last three months, and the brands with which the company often cooperates.

We already give you a few tips to save considerably on your new car

car loan

Aim for cars that are in stock at the dealers.

According to the RTBF consumer program On n’est pas des Pigeons, most dealers absolutely want to get rid of their stocks before the end of the year, so that they have room for the new models again. They are therefore often prepared to give large discounts. And there is another advantage: you don’t have to wait long.

Play the competitors against each other.

We do not only mean competition between brands, but also between dealers of a certain brand. According to the website, many manufacturers at the end of the year award premiums to dealers who meet their sales objectives. If a dealer just does not succeed, he is more willing to reduce his profit margin . A matter of looking and comparing.

Choose the right model.

car loan

A real price war is raging in the automotive sector and the brands use discounts as a commercial weapon throughout the year. You never pay the list price and the discounts vary between 5 and 20%, depending on the model. The more recent and exclusive the model is, the lower the discount. And since the commercial margin on luxury cars is larger, larger discounts can also be found there .

Aim at the options.

The dealers often earn more from the options and can therefore also offer a larger discount . Or you even give an option as a gift.

Choose a Geeks car loan

Choose a Geeks car loan

At Geeks we are happy to help you on your way. After you have made your choice, we will gladly make an appointment at a Geeks office in your area. Do you have a busy schedule? Request your Geeks car financing online and we will contact you within 2 working days.

Simulate the payment for your Geeks Car Loan from 2.65% APR

In addition to purchasing your dream car, there are also the high costs, including gasoline or diesel. For this we recommend the Geeks Q8 World MasterCard, which gives you a 4% discount on Q8 during the first three months. Afterwards you can still enjoy a 2% discount on your refueling, and a 0.5% discount on all your other purchases.


There is still nothing like the Motor Show to compare models or buy the latest model of the year. But if you know what you want and don’t necessarily have to drive in the most recent model, it may be interesting to buy your car by the end of the year.