What you need to know before you take a car loan
Educational Program A Life / / December 19, 2019
What is a car loan
This target loan, the money from which can only be spent on the purchase of the vehicle. Can be purchased as a new car, and the city. But credit to purchase a car from a private seller is not very willing to give and not everywhere, so there is better to choose a car dealership that sells b / y vehicles.
Car Loan distinguish several characteristic features.
Pledge
Until the loan is not repaid, the car will be pledged to the bank. Until then, vehicle registration document (TCP) is most often stored in a credit institution.
expensive insurance
By law, the mortgaged property must be insuredArticle 343 of the Civil Code. Maintenance and safety of the mortgaged property from the risks of loss and damage. In most cases, banks are not satisfied with the policy CTP - will draw Hull.
Dmitry Molkov, director of GC "AvtoSpetsTsentr» Financial ServicesOn average, this increases the amount of the loan at 10%. On the other hand, if the car was not insured and it was stolen, the borrower still pays the loan in full.
Moderate interest rate
Based on statistics, not to speak of a global difference in general. In the first quarter 2019 average rates on car loans was 17.1%The Banki.ru Index: rates on mortgages and deposits grow, On cash loans - 17.62%. According to the Central Bank, the weighted average rate on loans for a period of more than three years in February, 2019 is 12.76%Information on loans in rubles, US dollars and EurosAnd in view of the auto loan has 14.13%.
But the difference will be visible when you start to deal with specific banks offerSuitable for your situation. The interest rate on auto loans in most cases will be lower than on purpose consumer as the bank insures its risks pledge and can not afford to offer more favorable conditions.
Who gives out a car loan
Even if you arrange the loan directly in the showroom, on the opposite end you still waiting for a bank with which you sign the contract.
A credit institution may place a representative in the showroom directly or to work through a broker - an intermediary who acts as a link. Brokers often sent requests to several banks and connect you to the one ready to give credit. But this does not mean that they pick the most advantageous terms for the client. But to pay for the help will likely have.
What are auto loans
Auto loans come in several forms. When you select will have to focus not only on the desired characteristics, but also on the conditions that you are willing to offer.
1. Classical
Clearance is conducted as usual. you do a request to the bank. The institution check your solvency, credit history and make a decision to grant a loan or not. Interest here are slightly lower, because your integrity as a customer will be confirmed.
2. Express Loan
For registration of documents sufficiently 2-3, a decision on the approval is received quickly. Risks in this case balanced slightly higher percent.
3. factoring
This interest-free loan with an impressive initial payment. If you pay 50% of the car value and more, the rest amount can be paid installments.
4. Credit and repurchase (BuyBack)
Monthly payments are calculated so that the last payment you owe the bank more part of the amount - usually 20-40%. To repay the loan, you can add the missing amount themselves or sell the car dealer, who will make the remainder. The circuit is used more often for the status of luxury cars.
What advantages of auto loan
To consider the pros and cons of car loan, it must be something to compare. If you buy without a loan, then the leader of this race is clear: lack of credit is always better than his presence (but there are nuances, of which below). Therefore, compare it with the usual consumer credit and denote important advantages.
1. Special price
car dealers often offer to those who take a car loan, special prices.
Suren Hayrapetyan, managing partner Rebridge CapitalThe buyer of the machine becomes a client of the bank and bank dealers often make very good discounts. The discount can reach 10%.
do not forget in pursuit of profit of additional costs, Due to which the actual costs may rise. In addition, the shares are usually subject to specific equipment or vehicles require the purchase of options, which ultimately may make you spend more than you bargained for.
But here is the same nuance. If you buy an expensive car, you can always buy it on credit at a discount and pay off the loan in full, after a month, not overpaying on interest. This will work only if the difference in price exceeds the cost of hull insurance and other associated costs.
2. The possibility of obtaining assistance from the state
ProgramRF Government Resolution of April 16, 2015 № 364 "On the granting of the federal budget of the Russian credit organizations subsidies to compensate shortfall in income on loans to Russian credit organizations in the years 2015-2017 to individuals for the purchase of cars and reimbursement of expenses on loans in 2018-2020 years to individuals for the purchase of Car » preferential auto credits extendedState support of demand for cars and public transport in the Russian Federation in 2019 will decrease by 2.6 times. You can get from the state 10% of the price of the machine to the initial payment, and if you live in the Far East region - 25%. To get under the program, you must meet one of two criteria:
- this is your first car;
- you have two or more children;
There are also requirements to the car you intend to buy. The car should be:
- new;
- Russian assembly;
- up to 3.5 tons;
- worth up to 1 million rubles.
To receive state aid, it is necessary to apply for car loans directly to the bank, but only joined the program.
3. Approval of a higher amount
Purpose consumer loan is not secured by anything. Deposit at the bank car loans reduces the risk of default of money: if anything it just take away and sell the car. Therefore, the agency may issue a significantly higher amount than would have approved the loan without collateral.
4. A longer period of payment
Car loans on average issued for a period of three to five years. Money is issued by the target consumer loans, banks often want to get used to.
5. The interest rate is lower
If you go to the bank with a request to calculate your consumer credit and road conditions in the second, are likely to be more favorable - the cause of a pledge. But there may be exceptions, with more common than it seems.
The bank may strongly suggest you credit card with a certain limit and not to approve a car loan for a smaller amount. Just deal with it, because it is impossible to understand - credit institutions do not disclose the criteria for evaluation of clients that this information is not used the crooks.
What are disadvantages of auto loan
We compare all with the same purpose consumer credit.
1. Property pledged
Until you repay the loan and do not get PTSD, can not sell a car.
2. expensive insurance
As we have seen, can not do without a helmet. But sometimes the banks impose additional insurance services. Of course, you can refuse, but then you just will not give credit.
Orest Matza, a leading lawyer of the European Law ServiceTo the credit has been approved, you can make the "imposed" the insurance services, and after receiving the money within two weeks to write a letter of refusal from the insurance to the insurance company. The money must be returned within ten days.
3. There is an initial fee
This is not always a prerequisite when you make a car loan, but many banks require to make some part of the cost of the machine. Upon receipt of misuse of consumer credit do not need.
4. There are requirements to the car
Because the bank takes a car as collateral, he exposes the criteria to be met by the car - then to sell it, if you do not return the money. The funds from the consumer loan you can buy anything.
What to look for when ASSUME car loan
Consider offers from several banks
Eloquent salesman strongly recommended to take a loan in a particular bank, and this should be alerted: with high probability it is beneficial to him, not you. View more options to choose profitable. And the conditions of the consumer purpose loans also specify.
It turns out all the conditions of the action
The information that you see on the banner - it is certainly true, but not all. To purchase was really profitable, it is necessary to read all the conditions. Or you might accidentally spend more than planned, and even to pay interest on the inflated amount.
Check for hidden extras and insurance
Carefully re-read the contract and make sure you understand it in every line. This will save you from additional costs and the problems with the bank, if you break the terms of the contract, to which not just dolistali.
Sensibly assess the costs and revenues
With the loan for a car you will need to enter in the budget, not only the monthly payment, but also the accompanying expenses - update insurance, motor vehicle tax, fuel and so on. As a result, costs can increase significantly and become a burden.
With the result that
- Car loans - a good financial tool if properly use it.
- Taken a car loan (and generally any credit) - carefully read the contract and specify all conditions.
- If you find a consumer loan, the total cost of which is lower than the total cost of a car loan, and the bank will approve you the required amount - choose it. You save on Hull and will be able to dispose of the machine, as it pleases.
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