Car loan

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

Currently, competition in the banking sector is so great that getting a loan to buy a car is a breeze. The conditions for granting a loan are not much different, therefore, very often special programs are offered, promotions are held that call for taking the required amount of money in this particular bank, and not in another. What should you pay attention to first of all when applying for a car loan so as not to make a mistake?

Statistics show that only about 20% of cars are purchased for cash in Russia, therefore, the remaining 80% are bought on credit. Therefore, the saying “demand creates supply” is very suitable for this situation. The average interest rate is 13-21% per annum for a period of 1 to 3 years. Buying a car on credit is a very relevant topic.

What are the nuances of special car loan programs? Most often, banks conduct such programswith car dealerships. Here, both the interest rate and the down payment can be reduced, as well as the loan term can be extended. A loan to buy a car from a car dealership for such promotions is not very popular among the population. As a rule, this is due to the fact that a person decides on the choice of a brand even before a loan, so this offer does not suit him. If you are interested in a special program, then carefully read the contract. In some cases, low interest rates can hide high commissions, special insurance conditions and other additional payments.

Express loan to buy a car is a common offer in recent years. The conditions are quite tempting: a minimum of supporting documents, a quick decision, no collateral or guarantors. Naturally, the lending rate here is an order of magnitude higher, but this does not stop many. The advice is the same - pay attention to the conditions to avoid negative consequences.

With a car loan, in principle, everything is clear, but how can you get a loan to buy a used car? Car dealerships sell only new cars, and loans to buy a vehicle in the secondary market simply do not exist. You can, of course, take the same express loan, but its distinctive feature (in addition to high interest rates) is also a short loan period, which does not suit many borrowers. It is worth paying attention to non-targeted loans offered by almost every bank in the country. Pros of itobvious. Firstly, the car you buy will be your property (with a car loan, it will be pledged to the bank until the final repayment of the debt). Secondly, the possibility of independent choice of the company, the term of insurance and its type. The disadvantages of consumer non-purpose lending include slightly higher interest rates, limited repayment periods (not typical for all banks) and their design features.

Buying a car is a responsible business, especially on credit. Therefore, think several times, weigh all the pros and cons, and only then go to the bank with an application for a loan.