The market in which loans are granted today can be compared with the battlefield, in which, as you know, all means are good. No exception and loans to buy a car. At the same time, marketers took into account that some do not take car loans because they do not have funds for a down payment. For such customers cars are now available on credit without a down payment.
Who will be approved?
Despite the fact that in this case loyalty is shown, a car on credit without a contribution will be approved only by those who fit certain criteria. None of the banks will issue a loan if the borrower has not reached the age of 21, and most financial institutions will also refuse those who are already retired. One of the most important requirements is the level of income. Here, the opinions of banks are divided. Some require a certificate, while the salary should be so much that monthly payments are no more than half of it. This value will completely depend on which bank you apply to. Other banks may “turn a blind eye” to the fact that you cannot confirm income with a certificate, but they will require documents for any property, passport or other document.
A car on credit without a down payment - is everything really simple?
It is clear that the requirements of banks may differ slightly, but most Russians fall under such conditions, who for some reason are in no hurry to buy new cars, although banks constantly offer to do this even without money for a down payment. The main reason for this provision is interest rates on lending programs, which provide for the absence of a down payment. That is, if you apply for a car loan according to the classical program, then the interest rate will be 13-17%, and if you take a car on credit without a down payment, then the rate rises to 30 percent. It should also include bank commissions, an insurance policy for the car and for yourself. Now calculate how much it will cost to buy a car without a down payment.
And if you still want to?
In the event that you still want to buy a brand new car "right now", then think before grabbing at the first available offer. Many banks have such loan programs, so you should first go to different organizations and compare the conditions. It should be borne in mind: if a car on credit without an initial payment is offered at a rate below 11%, then the bank will most likely be compensated for the shortage by commissions charged on a monthly basis, which can catch up with the overpayment by half. This also applies to other similar programs: the bank will never work at a loss.
After choosing the right product, you need to collect a package of documents, a list of which will be given to you at the bank. The more convincingly your solvency is confirmed, the more affordable a car will be for you on credit without a down payment, in addition, and the loan rate will be much lower.