How do credit cars sell? Is it worth taking a car loan

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

Every year the number of cars on the roads of Russia increases. Despite the huge traffic jams, people are rapidly going to car dealerships. But, unfortunately, not everyone has the opportunity to pay the full amount for a new car, so they go to banks. How do banking institutions sell credit cars? Usually the whole thing happens through an auction.

A new buyer can immediately pay the full cost of the vehicle (in other words, buy it and forget about interest rates and monthly payments) or take a car on credit. But often such cars are “squeezed out all the juice”, so after the deal you need to fork out for its repair. With collateral, this process can be avoided.

But many who are going to buy a car through a bank pay attention to new cars on credit - they are not “killed”, you don’t need to spend money on repairs … But here there are a lot of pitfalls - sort of floating interest rates, taxes and many other headaches.

How credit cars are soldcar dealerships

Of course, car loans are one of the most popular ways to buy a car. But in recent years, many banks have tightened their conditions, so not everyone can buy a car on credit. Lending in car dealerships is very popular now - at first glance it is very convenient, because you don’t have to go anywhere. But after a while, the client realizes that it was better to get a loan from a bank. And all due to the fact that he charges additional fees for currency conversion when transferring funds to a car dealership. Thus, a financial institution is enriched by an average of 1-2 thousand dollars (with a car costing 20 thousand dollars), which the client himself will pay.

The car dealership meets the buyer with long rows of beautiful foreign cars, and friendly and always smiling employees are ready to show you any car model and answer all your questions. The so-called "individual approach" forces the client who has lost his vigilance to agree to any conditions in the contract. Because of this, he falls into "credit slavery", when the interest keeps growing, and the monthly payment cannot be repaid. This is how unscrupulous dealers sell credit cars. Unfortunately, there are a lot of them in Russia, and there are practically no honest people in credit institutions. Often, “kind” managers lure gullible clients into a bait, convincing them that they can only get a loan and insurance through a salon.

And some even say what to buy and installadditional equipment for the car is possible only with them and it will be very profitable. Indeed, there will be a benefit, but not in favor of the buyer.

How credit cars are sold for leasing

Many as an alternative to credit slavery choose a service such as leasing. The scheme of buying a car is very simple: the client chooses the desired car, and the leasing company buys it. According to the contract, the client makes an advance payment (it is about 20-30 percent) and receives the car. He pays monthly payments for it. It turns out that you do not take a car on credit, but on a lease with the right to purchase.