Is it profitable to take a car loan without a down payment?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The market where loans are provided today can be compared to a battlefield where, as you know, all means are good. Car loans are no exception. At the same time, marketers took into account that some do not take car loans due to the fact that they do not have the funds for the first installment. For such customers, cars are now available on credit without a down payment.

Who will be approved?

Despite the fact that loy alty is shown in this case, a car loan without a fee will only be approved by those who meet certain criteria. None of the banks will issue a loan if the borrower is under 21, and most financial institutions will also refuse those who are already retired. One of the most important requirements is the level of income. Here the opinions of banks are divided. Some require the provision of a certificate, while the salary should be so much thatmonthly payments amounted to no more than half of it. This amount will depend entirely on which bank you contact. Other banks may “turn a blind eye” to the fact that you cannot confirm income with a certificate, but they will require documents for any property, a passport or other document.

A car loan without a down payment - is everything really simple?

It is clear that the requirements of banks may differ slightly, but most Russians fall under such conditions, who for some reason are in no hurry to buy new cars, although banks constantly offer to do this even without money for a down payment. The main reason for this provision is the rates on lending programs that provide for the absence of a down payment. That is, if you apply for a car loan under the classic program, then the interest rate will be 13-17%, and if you take a car loan without a down payment, then the rate rises to 30 percent. It is also worth including bank commissions, an insurance policy for the car and for yourself. Now calculate how much it will cost to buy a car without a down payment.

And if you still want to?

In the event that you still want to buy a brand new car "right now", then think before you grab the first offer. Many banks have such loan programs, so you should first walk around different organizations and compare the conditions. In this case, it is worth considering: if the cara loan without a down payment is offered at a rate below 11%, then the bank, most likely, will compensate for the shortage with commissions charged monthly, which can catch up with the overpayment by half. This also applies to other similar programs: the bank will never work at a loss.

After choosing a suitable product, you need to collect a package of documents, a list of which will be given to you at the bank. The more convincingly your solvency is confirmed, the more affordable a car will become for you on credit without a down payment, in addition, the loan rate will be much lower.