Even if there is no official CAF loan to buy or repair a car, the CAF can help you depending on your situation. 3 possible aids: the preventive loan, the honor loan and the mobility loan. They will have the same result as a CAF car loan without officially bearing the name. I will explain how to request them.
Can we make a CAF loan for a car?
Having a vehicle in working order is essential to remain active in the event of unemployment, especially in rural areas. You may need it to buy a new car or to have yours repaired. This is where CAF comes in.
These are emergency measures allocated in the interest of people in difficulty. Read the rest of this article to learn more. I will present these 3 options to you, as well as their amount.
1️⃣ The CAF preventive loan: borrow money from the CAF to replace your vehicle
How to find a loan of money when your car is broken down and you have financial difficulties? Request a preventative loan ! This interest-free loan for the purchase of a car will be granted under certain conditions.
✔ Who can benefit from a preventive loan?
You must meet the following criteria:
- You are experiencing real financial difficulties.
- You receive family benefits.
- You have a dependent child (at least one).
- You do not exceed the €720 family quotient.
✔ The amount of a CAF preventive loan: €1,250
Let’s get along well. The allocated sum does not allow to splurge and buy the latest SUV. But the social organization can participate in the financing of your vehicle or its repair, that’s already it.
Note that there is no dedicated CAF loan for vehicles. But the purchase of a used car and the repairs fall within the allocations of 2 loans specially created to fight against a precarious situation.
This money will cover all of your expenses. It can be repairs, the purchase of a scooter, or a small used car.
Each family will choose the number of monthly installments to repay the loan, with a minimum of €25 per month.
✔ What expenses are covered by a precautionary loan?
The battery has just failed, the tires are worn, the carburettor is smoking, the exterior mirror has been broken, the exhaust pollutes, the locks have been picked, we had a window broken, there is a chip on the windshield… The list of repairs on his car is endless.
Daily expenses : it can be an EDF invoice or an unpaid GDF (Gaz de France) reminder. The CAF credit is paid directly to the organization. Car repairs fall into this category of daily bills.
Unforeseeable expenses: iIt will be necessary to justify its urgent usefulness to the services of the family allowance fund.
✔ My opinion on the preventive loan
When you touch the RSA, or the social minimum, when you are long-term unemployed, or simply when there are more urgent expenses to be made for the good of your family, it is not possible to have your car repaired.
This can have significant consequences, especially for those who have landed a job interview, or who have to travel for personal reasons (delivery in a hospital located far enough from home).
✔ How to get a precautionary loan?
To apply for a precautionary loan from the CAF, you have to do it without anyone’s help, by going on the Internet.
The steps are simple. Download the application form from the CAF website. Send it completed with the supporting documents to the social action center of your city or your department.
Each CAF puts the forms to be completed online (in principle). It is then necessary to print them (you can do it from the Pôle emploi if you do not have a printer), and fill in the file in its entirety.
Do not forget to attach all the supporting documents requested so as not to have the file returned and to lengthen the response time.
To obtain help from the CAF to buy a car to go to work, the following supporting documents must be attached to the file:
- Technical inspection certificate, proving that the new car is not likely to break down very quickly.
- Note from the repairer who certifies that he was unable to restart your old vehicle.
- Quote from the seller of the car.
- Gray card not yet crossed out.
2️⃣ The loan of honor: make a car loan while being unemployed
Making a loan of honor for a car when you are at the RSA allows you to continue looking for work. You can continue to travel to go to the Pôle Emploi summons, for example.
The honor loan also makes it possible to obtain a car loan despite a Banque de France file.
✔ Who is the honor loan for?
If in the big cities there are alternative solutions with good public transport networks, the situation is different in the countryside where it is not possible to envisage your daily life without being able to travel by car.
You must meet these two conditions:
- You have to get help from social action before you can apply for it.
- The file must be assembled and presented by a social worker.
✔ What is the amount of the CAF honor loan?
The sum is higher than that of the preventive loan, between 1000 € and 3000 € at most. But this amount depends on the departments.
It is the director of CAF who will decide the amount depending on the situation. You should not count on being able to buy a new car just with this financing from the CAF.
It is better to consider this assistance to buy a small used car or to have your current vehicle repaired. The CAF loan is also valid for buying a scooter or having your motorcycle repaired.
Even if this is a zero-rate loan, you still have to be able to pay a small monthly payment each month.
✔ What expenses are covered by the honor loan?
The notion of “social” is important. For example, you can request one for:
- Pay the bills: water, electricity, gas, telephone, Internet subscription, house insurance.
- Put your bank account back in positive so as not to pay too many agios.
- Have your car repaired.
The example of the car without a license
For those who have had their license withdrawn, it is possible to buy a car without a license using a CAF loan. The project must be accepted by the social worker and be justified (need for a car for professional reasons, for example).
For many French people, the vehicle is compulsory in their work. Why not ask the CAF for a little help for the purchase of a vehicle, even without a license that will help out?
I also advise you to consider a loan of honor or a preventive loan CAF to pass your driving license.
✔ What are the steps to take to have a loan of honor
You have to start by contacting a social worker, who will take charge of the request and take care of all the necessary steps with the CAF. She will judge whether the case has a chance of succeeding.
Meeting with a social worker
It is the social worker closest to you who will set up the file, while ensuring the legitimacy of your request and your ability to reimburse.
Finally the most difficult will be to get an appointment with a social worker. They are overwhelmed. Sometimes you have to wait a bit before you can meet them. It will surely take several appointments to finalize the file of your CAF honor loan.
3️⃣Le Mobility loan
It is the CAF of the Ardèche which offers this mobility loan, based on certain criteria, in particular that of the unforeseen and impossible to anticipate difficulty.
If you are a recipient, you can request it once a year, provided you have a project to present and in which this money finds its place.
✔ What are the conditions to be respected?
- You must already be a beneficiary and have at least 1 dependent child.
- Your family quotient must not exceed €720.
With the sums below, you can either buy a vehicle or have it repaired.
- For the purchase of a car or utility vehicle: €2,000
- For the purchase of a motorcycle or scooter: €1,000
- For the repair of your vehicle: 800 €
Buy a used car through a solidarity garage
I wanted to talk to you about this excellent initiative, that of the solidarity garage Solidarauto in Grenoble, Hoping it sparks more!
It is aimed at those who have financial difficulties and who cannot do without their car.
Solidarauto will help them:
- Choose the right car.
- Take the steps at the prefecture.
- Finance the purchase.
The solidarity garage offers a “package” which includes the car but also the plates, the technical control and 3 months of guarantee.
✔ Does it help everyone?
No. The demand in the 38 being important, it is necessary to have a family quotient which does not exceed 1000 €. On the other hand, you are not obliged to already be a CAF beneficiary.
Calculation of the family quotient: your annual income (salaries + social benefits), divided by 12, multiplied by the number of tax shares.
Number of parts :
- Parents or single head of household : 2 parts.
- 1st and 2nd child : 0.5 part.
- 3rd child : 1 part.
- 4th and subsequent children : 0.5 part.
- Disabled child : 1 part.
If you have trouble calculating your family quotient yourself, you can go to the town hall or to a CCAS.
✔ Micro-credit financing
If you are reading this article, you are not going to be able to finance the purchase of your car without help. In addition to CAF loans, you can contact the following structures to request a micro credit of up to €3,000:
- Employment center
- Catholic Relief Services
- The Red Cross
- Les Restos du Coeur
✔ How to contact Solidarauto 38?
Address : 14 avenue de l’Industrie, 38130 Echirolles
The solution for you may also consist of supplementing your CAF loan with another financial aid, such as a loan between individuals or a helping hand from ADIE.