What is the preferential car loan program?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

A personal car is good, not everyone can argue with such a statement. Nevertheless, this purchase is not cheap, and not all of our compatriots can afford to look into a car dealership. That is why car loan programs, which are quite diverse, are gaining more and more popularity every year. Also, for several years now, there have been preferential car loan programs for Russians. However, first things first.

How to get a car loan

Today, there are three ways to buy a car on credit. Automotive programs:

Basic. Such a program is akin to conventional consumer lending. It allows you to purchase both a new and a used car for use, and it does not matter if it is domestic or foreign. From the moment the money is receivedfunds, the borrower is given no more than 90 days to choose and purchase a vehicle. After the purchase, the car becomes a bank pledge. The amount of such a targeted loan can reach up to 5 million rubles, and the interest rate can reach 20%. Funds under the basic car loan program can be obtained for up to 5 years.

Affiliate. This option almost completely repeats the basic car subsidies with the only difference that the interest rate on the loan can be slightly reduced if you buy a car in the salon that is a partner of the creditor bank.

This program has several drawbacks:

• you won't be able to buy a used car this way;
• the choice is limited to those models that are presented in a particular car dealership;
• will have to prepare a down payment of at least 20%.

The state program of preferential car loans. The loan amount under such a program can be 85% of the cost of the car, but cannot exceed 800 thousand rubles. Registration term - no more than 3 years. The essence of the preferential car loan program is that part of the interest on the loan is repaid for you by the state, which significantly reduces the interest rate for the borrower. The rate for this type of subsidy depends entirely on the refinancing rate of the Central Bank, so it may be different in each specific case.

Historical background

Preferential car loan program was first tested inRussian Federation during the 2009 crisis. This decision, together with the program for the recycling of old cars, helped domestic automakers to stay afloat and significantly upgrade the Russian car fleet. However, the first subsidized car loan program had a number of disadvantages:

1. Initially, it was designed to support the AvtoVAZ enterprise, since the average cost of a car of this brand did not exceed 350 thousand rubles.
2. The model range approved by the Ministry of Industry and Trade for the implementation of the program was only 10 items, so consumers did not have much choice.
3. Another negative side of the issue was a rather high down payment - at least 30% of the cost of the car. Not everyone could afford to lay out such a sum at a time.

However, over time, the program has gained significant popularity, the initial payment has halved, and the lineup has expanded five times. Today it is safe to say that the preferential car loan program is the most popular way to purchase a personal car. However, the auto-subsidy program has been discontinued and restarted at various times, and there has been heated debate in the run-up to 2015 as to whether it should be continued.

New car inventory

Despite the fact that the current economic situation in the country is rather unstable, since April 1, 2015, a new preferential car loan program has been launched. The list of cars has expanded to 50 positions, but a new condition has been introduced: a car purchased under such a program must be manufactured in 2015.

Skoda Octavia	LADA - 1117	LADA - 2115	GAS - 2217	UAZ - 2206
Skoda Fabia	LADA - 1118	LADA - 2121	GAS - 2310	UAZ - 2360
Kia Spectra	LADA - 1119	LADA - 2131	GAS - 2705	UAZ - 3303
Renault Logan	LADA - 2104	LADA - 2170	GAS - 2752	UAZ - 3741
Chevrolet Cruze	LADA - 2105	LADA - 2171	GAS - 3221	UAZ - 3909
Chevrolet Niva	LADA - 2107	LADA - 2072	GAS - 3302	UAZ - 3062
Fiat Doblo	LADA - 2111	LADA - 2329	Volga Siber	TagAZ C 100
Fiat Ducato	LADA - 2112	UAZ Hunter	Hyundai Sonata	TagAZ RoadPartner
Fiat Albea	LADA - 2113	UAZ Patriot	Hyundai Accent	TagAZ Tager
Ford Focus	LADA - 2114	UAZ Pikup	IZH - 2717	TagAZ LC 100

Thus, it is clear that the list of cars offered for purchase this year is quite extensive and is not limited to domestic models.

Car lending conditions

In 2015, some requirements for issuing a car loan on preferential terms also changed:

• full cost of a car purchased under concessional lending cannot exceed 1 million rubles;
• maximum possible loan amount - 800 thousand rubles;
• minimum loan amount can be determined by the bank itself;
• loans are provided only in Russian rubles;
• the car that the customer plans to purchase must be assembled in Russia;
• it will not be possible to buy a truck in this way, since the total mass of the selected model cannot exceed 3.5 tons;
• credit can be issued for a period not exceeding 36 months (3 years);
• the purchased car must not be previously issued to an individual and be registered (registration) in accordance with the legislation of the Russian Federation;
• the lending rate is calculated as the difference between the interest rate,stipulated by the agreement of the financial organization, and two-thirds of the refinancing rate of the Central Bank of the Russian Federation at the time of the loan;
• refund applies to term interest only;
• the amount of the prepayment (down payment) is 20%, but it can be more (at the request of the borrower);
• loan can only be obtained by citizens of Russia.

How the interest rate is calculated

Thus, the preferential car loan program involves the reimbursement of only some of the interest on the loan, it depends on the current refinancing rate adopted by the Central Bank of Russia. Having made simple calculations, you can independently find out how much you will have to overpay in each case. To do this, use a simple formula:

Ps=Ds - 2/3 x Ref, where:

• Ps - annual percentage;
• Дс - the interest rate in force at the time of the loan under the standard lending scheme;
• Ref - % of refinancing accepted by the Central Bank of the Russian Federation at the time of the conclusion of the contract.

As of April 1, 2015, the refinancing rate is 14%, which means that its reimbursable part is 9.33%. Thus, if you applied to a bank offering a car loan at 20% per annum, then, using the state preferential program, you will pay only 10.67% annually. Of course, the base rates in all banks are different, so in each case, the result of the calculations will bebe different.

Basic conditions for obtaining a car loan

There are no special requirements for the borrower to receive a car loan under a preferential program. Of course, each bank has its own rules, and conditions may vary slightly, but the average portrait of a borrower looks like this:

• citizen of the Russian Federation aged no younger than 21 and no older than 60;
• has a permanent job for at least the last 6 months;
• registered and permanently residing in the service region of a particular bank;
• is able to prove that you have a steady income sufficient to cover your monthly payment.

Based on practice, we can say that there are only 2 parameters for which a preferential car loan can be denied: a bad credit history and the presence of children under the age of six months (for women).

Additional requirements

Despite the fact that the preferential car loan program in all banking institutions looks almost the same, some criteria may still differ slightly:

• basic lending rate (the one from which the subsidy will be deducted);
• the shortest term for which a loan is issued;
• requirements for the borrower regarding length of service and salary;
• need for additional collateral or a guarantor;
• minimum loan amount;
• need for registration(registration) of the debtor in the region where the loan is issued.

Documents

In general, the preferential car loan program requires the borrower to have the following documents:

• civil passport of the borrower himself, as well as his wife (wife), if the debtor is married;
• Written consent of the second spouse to transfer the vehicle as collateral to the bank;
• driver's license (if any);
• certificate 2-personal income tax (on income);
• extract from the work book, officially certified at the last place of work;
• contract of sale or reference-invoice from the salon, confirming the cost of the car.

Since each organization has its own credit policy, the list of required documents may vary significantly. Nevertheless, the unwritten rule says: the shorter the loan term and the larger the down payment, the fewer documents the bank will require.

Where can I get such a loan?

So, what is a preferential car loan program, more or less clear, but where can I get such a loan? To date, a complete list of Russian banking institutions offering such services has not yet been determined, therefore, in each specific case, it is necessary to clarify whether it is possible to receive a state subsidy. However, it is safe to say that this list is quite long and, according toas of the end of 2014, was more than 130 organizations. Among them:

• Sberbank RF.
• "VTB 24".
• "URALSIB".
• Gazprombank.
• "UniCredit Bank".
• Bank Saint Petersburg.
• Sovetsky Bank.
• AK BARS BANK;
• JSC "BTA-Kazan" and many others.

So finding the right option and taking advantage of the preferential car loan program in Russia in 2015 will not be difficult.