Currently, competition in the banking sector is so great that it is easy to get a loan to buy a car. The conditions for granting a loan are not very different, so special programs are often offered, and measures are taken that require that the correct amount of money is taken from this bank and not from another. What should you keep in mind first when you borrow a loan to buy a car so as not to be wrong?
Statistics show that for cash Russia only gets about 20% of the cars, therefore the remaining 80% are in debt. Therefore the saying “demand creates supply” is very suitable for this situation. The average interest rate is 13-21% per year for a period of 1 to 3 years. Buying a car on credit – the topic is very relevant.
What are the nuances of special programs?
Banks are more likely to run such programs with car dealerships. Here the interest rate, the down payment and the loan period can be reduced. The credit for buying a car from a car dealer for such stocks is not very popular among the population. This is usually because a person is determined in choosing the brand before the loan, so this suggestion doesn’t suit him. If you are interested in the special program, read the contract carefully. In some cases, low interest rates can disguise large commissions, special insurance terms, and other additional payments.
Express credit for car purchase – often a meeting in recent years. The conditions are rather tempting: a minimum of supporting documents, quick decisions, no commitments and guarantees. Of course, the lending rate here is an order of magnitude higher, but many don’t stop it. The advice is still the same – pay attention to the conditions to avoid negative consequences.
With car loan everything is basically clear, but how can I get a loan to buy a car?
Only new cars are sold in the car trade and loans simply do not exist to buy a vehicle in the secondary market. You can of course take the same express loan, but its peculiarity (in addition to high interest rates) is also a short loan term, which is not suitable for many borrowers. It is worth paying attention to non-targeted loans offered by almost all banks in the country. Its advantages are obvious. First, the car you buy will be your property (with a car loan, it will be pledged to the bank before the debt is finally repaid). Secondly, the possibility of an independent choice of company, duration of insurance and its type. The disadvantages of non-earmarked consumer loans include a slightly higher interest rate, the limitation of the term (not typical for all banks) and their design features.
Buying a car is a responsible business, especially on credit. So think a few times, weigh all the minus points and plus points and then go to the bank with a credit request.