Where and how to get a car loan for a car?

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

Not everyone who wants to buy a car will immediately have the money to pay for such a purchase. Therefore, car loans are today a very popular and affordable way to buy your own car.

What are the features of a car loan

Car loan is a targeted loan for the purchase of a car. You can get a car loan from a bank on the condition that the car will serve as a bank collateral. Based on this, the bank reduces risks and takes lower interest on the loan.

As a rule, the rate on a car loan is less than on a cash loan. But in case of non-payment of the loan, the car is seized by the bank and sold to repay the loan.

Most often, the bank requires the borrower to insure the car under the CASCO program. In case of theft or damage to the car in an accident, the bank will receive insurance. The car owner must renew the insurance every year, otherwise the bank will apply pen alties to the borrower.

Before the repayment of the car loan, the passport for the car must be in the bank. If you need it, then you need to contact the bank and resolve with it the issue ofhow to get it and when it needs to be returned.

Where can I get a car loan?

There are many different banks in Russia. But after 2014, a large number of financial and credit organizations stopped issuing loans for the purchase of cars, replacing them with consumer loans with simplified conditions.

You can see that few rated banking institutions offer such a targeted loan in 2017. In most cases, interest rates on auto loans are the same as on consumer loans. Although before the difference was quite noticeable.

Bank name	% APR	Loan amount, RUB	Issue date	For which cars		During what period is issued	Down payment, % of car value
				New	Used
"Eastern Bank"	19	100 thousand rubles - 10 million rubles	1 to 5 years	+	+	Immediately	-
"Knokssbank"	12	100 thousand rubles - 10 million rubles	3 to 10 years old	+	+	Within one week	-
"Alfa-Bank"	12, 5	100 thousand rubles – 5.6 million rubles	1 to 6 years old	+	+		From 10
"VTB 24"	17, 9	150 thousand rubles – 1 million rubles	1 to 7 years old	+	+		20
Raiffeisenbank	6, 4-14	50 thousand rubles – 3 million rubles	1 to 5 years	+	+	Within one business day	From 15 to 40
Rosselkhozbank	17, 5	Up to 3 million rubles	Up to 5 years	+	+	Up to 4 days	From 15
Sberbank	11, 5	Up to 10 million rubles	Up to 6 years	+	+		-

The most attractive conditions are offered by "Noxsbank". But only residents of the Volgograd region can get a car loan at this bank.

"Alfa-Bank" also offers quite attractive lending conditions. Here you can opt out of CASCO insurance. If you do not receive a salary through this bank, thena car loan will be issued to you at a rate of 15.5% per annum.

The conditions of VTB 24 are the most balanced in terms of rates and requirements for the borrower. But in this bank it is necessary to pay a down payment in the amount of 20% of the total cost of the purchased car.

Car loans from Raiffeisenbank are ideal for high-income borrowers living in major Russian cities.

Speaking of how to get a car loan at Sberbank, it is also necessary to note the rather favorable conditions of this bank. The interest rate here is one of the lowest. Almost every citizen of Russia can get a car loan here.

If you receive a salary at Sberbank, then the bank will make a decision on issuing such a loan within 2 hours. If the client has the opportunity to make an initial payment of 30% of the cost of the car, then the bank will not require a certificate of income, a copy of the employment record and the presence of guarantors.

An even bigger plus of a Sberbank car loan is that the amount of CASCO insurance can be included in the loan amount.

Give an opportunity to get a car loan without a down payment "Vostochny Bank", "Knokssbank" and Sberbank.

If you decide to get a targeted loan for the purchase of a domestic car, then state support is provided for such purchases, which is very beneficial for the borrower.

How to get a car loan?

Getting a car loan includesthe following steps:

• preparation of documents and application for a loan;
• decision by the bank to issue a loan for a certain amount of money;
• choosing a car in the showroom, signing a sales contract, making a down payment (if any);
• signing a loan agreement;
• CASCO insurance;
• payment by the bank of the cost of the car to the car dealer;

After that, the citizen can pick up the car and register it.

Before you get a car loan, you need to ask the bank for a complete list of documents. Financial and credit organizations may request additional paperwork or information.

Important moment

A car loan can be issued first of all at a bank branch. The second option is a car dealership, where a representative office of a certain bank may be located.

The borrower himself should decide where to get a car loan. It is important to find out which lending conditions and in which bank will be the most profitable and convenient for you personally. Be careful not to make an impulse purchase by taking out a salon loan. The percentage there may be higher than in a bank branch.

Disadvantages of car loans

A car loan imposes certain obligations on the borrower and has its negative sides:

• Quite a strong increase in the cost of a car compared to purchasing it for cash.
• It is necessary to repay the debt monthly. Beforehow to get a loan, you should calculate your financial capabilities.
• Until the loan is repaid, the car is a bank pledge, and it can be sold or donated only with the permission of the bank.
• As a rule, when applying for a car loan, payment of CASCO insurance is always required, and this is a rather significant amount. Most often, the bank itself chooses the insurance company, and the amount of insurance may be higher than that of other insurance companies.
• If the car gets into an accident, the amount of insurance money paid is sent to the bank, and the owner will not be able to repair the car for these funds.

Requirements for the borrower

Each bank puts forward its own conditions for obtaining a loan. But you can usually get a car loan if you meet the following requirements:

• the borrower has Russian citizenship;
• age of a citizen receiving a car loan must be between 23-65 years old;
• work experience on Russian territory for a specified period.

Additionally, credit institutions require several phone numbers (work, personal, phone number of acquaintances).

How to get a loan for a used car?

Used cars are cheaper than new ones and can be as good as new. Consider how to get a car loan for a used car.

Usually banks set the following conditions for used cars:

Parameters	For foreigncars	For domestic cars
Age	Not older than 10 years	Not older than 5 years
Loan amount	Usually set by the bank in the amount of 500 thousand rubles. up to 1.5 million rubles	Similar
Machine weight	Up to 3.5 tons	Similar
Mileage	Up to 100 thousand km	Up to 50 thousand km

Issuing a CASCO policy is mandatory.

The borrower of a used car loan must meet specific requirements:

• be over 21;
• have a total work experience of more than one calendar year;
• work experience at the moment in the organization is more than six months, and for some banks 3-4 months are enough;
• be a citizen of Russia and have a residence permit in the city where he draws up a car loan;
• have a positive credit history.

A car loan is easier to get for drivers with driving experience. Banks are reluctant to issue such loans to young people and people of retirement age.

Loans for both new and used cars can be obtained at a bank branch or at a car dealership. It is most advantageous to do this at the bank through which you receive wages. For example, citizens who have salary cards at Alfa-Bank can get a car loan at 12.5% per annum, and forgeneral conditions the rate will be 16%.

Used car loan process

To get a car loan for a used car, you must go through the following path.

Choose a credit institution, compare the offers of different banks, their programs, interest rates and loan terms. When thinking about how to get a car loan, you need to clarify whether there is a representative office of the bank you like in your area. Preference should be given to trusted banks with a good reputation.

Applying is possible with a personal visit to the bank or via the Internet.

You must bring the following documents with you:

• passport;
• certificate of income from work;
• driver's license;
• copy of work book.

Next, the bank considers the application. After the approval of the application, the borrower, if necessary, is given a period of 1 to 3 months to search for a car.

After that, a sales contract is drawn up with the seller of the car. It is also mandatory to issue CASCO. This increases the borrower's bank payments.

The initial payment is transferred to the bank account, from where the money is transferred to the car dealership. The average amount of this contribution is usually 20% of the purchase price.

With special attention should be approached to the design of the loan agreement. The signed document must be thoroughly studied. You need to pay attention to the following nuances:

• The final value of the interest rate. It happens that they advertise one, but actually provide a larger one.
• The presence of commission payments for financial transactions (also called hidden).
• What are the loan repayment options.

After we received a car loan for a car and purchased it, it remains only to register with the traffic police. After that, you become the full owner of the car.

Good tips for buying a used car

Buy a used car in the showroom. So you can avoid buying a faulty or stolen car. Moreover, car dealerships often organize promotions for the sale of used cars.

If there is not enough money for a purchase, it is better to prefer a consumer loan to a car loan.

There are also specialists such as loan brokers. They know how to get a car loan on more favorable terms. Brokers will help you choose the most optimal loan program.

Getting a car loan with bad credit

If you have been late in paying off other loans in the past, then most likely this will negatively affect your credit reputation.

Before you can get a car loan with bad credit, you should contact the credit bureau for help. If it indicates that you have delays, you need to pay them off immediately. If any erroneous information about the delay is indicated, you must contact the bank to resolve this issue.

Toimprove your credit history, you can take several small loans and repay them on time and in full.

You can still apply to small or newly opened financial and credit organizations. Such institutions are looking for clients and agree to set not too harsh conditions for borrowers.

Another option is to apply for a loan from microfinance institutions, pawnshops or financial companies for which the client's credit history is not important. But interest rates in such organizations are much higher than in banks.

How to improve the reputation of the borrower

You can also increase the likelihood of obtaining a car loan if you have a negative credit history in the following ways:

• find a guarantor with an excellent credit record;
• submit to the bank a certificate of high income or possession of expensive valuables;
• provide bail;
• make an advance in the amount of 50% of the cost of the purchased car.

Getting a car loan via the Internet

Almost any bank today offers to apply for a loan via the Internet. To do this, in a special form, you must specify your personal data, the loan amount and other information.

After that, the bank will issue a preliminary opinion on the possibility of issuing a loan to you. But you still have to personally come to the bank to provide the required package of documents and sign the contract.

Car loan - take it or not?

UThere are many downsides to car loans, but there are also positives. It is necessary to carefully analyze all possible offers of banks, their loan programs, calculate the overpayment and other mandatory costs for car loans and compare them with the overpayment for a simple consumer loan. You also need to take into account the possibility of state support when buying a domestic car.

To understand this sea of nuances and terms of loans from different banks, do not be afraid to seek the help of professional loan brokers.

Take care of your credit score. After all, if it is bad, then getting a loan for a car will be much more difficult.

Car loans can be provided for both new and used cars. It is better to buy a used car in a car dealership, because it is guaranteed not to be stolen or broken.