Worth mentioning that the program of car loans, banks often develop together with dealers – because both parties are interested in sales, and therefore create proposals that best meet the needs of potential buyers.
Features of car loans
To obtain credit for the car in two ways – pushing from the desired vehicle model, or focusing on the best Bank's offer. In the first case, the loan is the easiest way to draw directly in the showroom, and often there are available quite popular right now quick loans that require a minimum of time and documents. Typically, such a loan need only a passport and a driver's license and the car is yours. However, such ease in obtaining has its drawbacks – less favorable interest rate - for example, 2% above conventional proposals issued by the Bank.
For buying domestic cars, the government offers subsidies and compensates for 2/3 of the refinancing rate (about 5.3%). Thus, instead of the usual rate of 12-15% you can save and pay only 8-13%.
Any loan (other than principal and interest) includes several important expenses:
- Commission for opening an account (once or for the entire period of service) - Several types of insurance (mainly, comprehensive insurance + life insurance) - Installation of alarms on the purchased car - auto Setting on the account in traffic police
Read more about the details of the car loan should ask his Bank Manager, as depending on the conditions and ways of obtaining additional expenses may vary.
The process of registration and the necessary documents
The terms on which banks make a loan, vary from one year to 7 years, and this depends on the interest rate. However, some banks specifically keep the interest rate regardless of maturity, which immediately makes them attractive to customers.
You can get a loan in cash or direct transfer to the account of the dealer.
However, banks often have their own requirements to the financed vehicles, and it also must be considered. Someone does not provide loans to buy used cars, others ignore the Russian car industry.
The most important thing for the Bank, as always, your financial worthiness and trustworthiness. Among the required documents – passport and driver's license, however, many lending institutions offering more favorable conditions are more serious about checking potential customers, requiring help 2NDFL (and sometimes a copy), proof of income, a copy of the agreement with the dealership and the invoice on the car.
In addition to the financial documents, banks also pay attention to the driver's license. For example, the Bank may refuse the client-the beginner with no driving experience who wants to buy a very expensive car.
Features of insurance
The car, purchased on credit, is your security Deposit money back to the Bank, so the most important point in obtaining a car loan is the insurance. As a rule, banks have put up stringent requirements for insurance and credit life and the car for the entire loan period. This is to ensure that when the insured event (car theft, crash with unrecoverable damage) and the Bank, and the consumer guarantee.
In the insurance case, the insurance company transfers money to the Bank, and only after that the loan is repaid. As long as the insurance did not cover the loan to repay the money in full should client.
There are two types of insurance: hull and CTP. CTP is Compulsory third party Liability Insurance, which covers a number of insurance cases, but is largely unreliable for beginners.
CASCO – insurance of the vehicle against any accident including theft. Hull insurance is the perfect insurance for those who don't want any trouble, so it costs more - up to 10% of the total cost of the car. Most banks require registration of this insurance, however, there are a small number of those who sufficient insurance. It is important to note that these banks require a large amount of down payment is usually 30% of the price of the machine.
A car loan is perhaps one of the most effective types of lending, because the car is expensive and sometimes unaffordable to buy, but it is often really necessary. If you correctly understand the conditions of the Bank and nuances of payments and insurance, the car will not be a burden to you, and will only justify their use on the joy to you and your family.