Often people take funds to buy cars from financial institutions. In recent years, the popularity of banking services, known as "car loan refinancing." This procedure is beneficial in the following cases:
- when a client wants to exchange an old car for a new one;
- if the borrower is not satisfied with the current car loan.
Motives
Something is constantly happening: interest rates are changing, new credit programs, state subsidies, and new vehicles are appearing. Car loan refinancing allows you to keep up with the changes. The desire to change the car appears in many people before they completely pay off their debt. According to statistics, mostly drivers change their car every few years, and a car loan is usually given for a period of up to 5 years. Another reason for refinancing is a change in interest. Many similar programs appear, banks compete and try to improve conditions in order to attract customers. Sometimes changes occur in the life of the borrower himself, for example, his income changes, a reliable person appears who can become a guarantor, or other circumstances that make the loan more profitable. If someone has issued a loan in dollars, a change in exchange rate is also a reason to refinance. Car loan without CASCO is also an option for saving money.
What car dealerships offer
Salons selling used cars sell foreign cars purchased several years ago. To reduce the time required for the sale of the vehicle, the salons enter into an agreement with the bank, the client signs the necessary documents. The "old" car will be in the showroom, and the "new" one is given to the buyer. The cost of the abandoned vehicle will cover part of the price of the withdrawn; a loan will be drawn up already for the difference in price. Customers optionally choose an old or used car. It is worth noting that refinancing a car loan allows you to buy foreign cars no older than 10 years old, VAZ cars, whose age is not more than 5 years. Older banks do not accept cars as collateral. Cars with high liquidity are popular, evaluate their age, mileage, conduct inspection. Typically, the conditions offered by car dealerships correspond to the current market situation.
Banking programs
It is possible to refinance in the same bank in which the auto loan was issued, or it is possible in another. Such banks as Absolut, Raiffeisen, Unicredit were among the first to offer this service. If we consider the refinancing of a car loan, which they offer, then the conditions are determined by the period for which the funds are issued, the size of the down payment (as a rule, it is equal to the price of an old car), and the currency of the loan.
Preferential refinancing
When there is a desire to purchase a new car, included in the state subsidy program, you can give the old car on account of the initial payment. It is only necessary to clarify with a financial institution information on the provision of soft loans. Be sure to ask about everything to make a profitable car loan refinancing. Banks may have different conditions.
Required documents:
- income statement (2NDFL);
- a copy of the labor (agreement that you are hired);
- passport;
- driver's license.
What does Sberbank offer?
2 programs are popular in this bank:
- exchange of a credit car for a new one;
- change in loan conditions.
Car loan refinancing at Sberbank is a serious procedure, which provides for:
- filing and consideration of the application to the bank;
- execution of a guarantee (additional);
- insurance of the vehicle that is purchased.
Car loan refinancing is an interesting financial instrument in the hands of many people who are able to carefully delve into all the conditions of the proposed programs.