Currently, the competition in the banking sector is so great that getting a loan to buy a car is easy. The conditions for granting a loan are not much different, therefore special programs are often offered, promotions are held urging you to borrow the right amount of money from this bank, and not from another. What should you pay attention to first when drawing up a loan to buy a car, so as not to be mistaken?
Statistics show that only about 20% of cars are purchased for cash in Russia, therefore, the remaining 80% are bought on credit. Therefore, the saying “demand creates supply” is very suitable for this situation. The average interest rate is 13-21% per annum for a period of 1 year to 3 years. Buying a car on credit is a very relevant topic.
What are the nuances of special car loan programs? Most often, banks conduct such programs in conjunction with car dealerships. Here, the interest rate and down payment can be reduced, as well as the extended loan term. A loan to buy a car from a car dealership for such shares is not very popular among the population. As a rule, this is due to the fact that a person is determined with the choice of brand before the loan, so this offer does not suit him. If the special program interests you, then carefully read the contract. In some cases, low interest rates may hide large commissions, special insurance conditions and other additional payments.
An express loan to buy a car is a common offer in recent years. The conditions are quite tempting: a minimum of supporting documents, quick decision-making, no collateral and guarantors. Naturally, the lending rate here is an order of magnitude higher, but this does not stop many. The advice is the same - pay attention to the conditions in order to avoid negative consequences.
With a car loan, in principle, everything is clear, but how can I get a loan to buy a used car? Only new cars are sold at car dealerships, and loans to buy a vehicle in the secondary market simply do not exist. You can, of course, take the same express loan, but its distinguishing feature (in addition to high interest rates) is also a short loan term, which does not suit many borrowers. It is worth paying attention to the non-purpose loans offered by almost every bank in the country. Its advantages are obvious. Firstly, the car you buy will be your property (with a car loan, it will be pledged to the bank until the debt is fully repaid). Secondly, the possibility of independent choice of the company, the term of insurance and its type. The disadvantages of consumer non-targeted lending include slightly higher interest rates, a maturity limit (not typical for all banks) and their design features.
Buying a car is a responsible matter, especially on credit. So think a few times, weigh all the pros and cons, and only then go to the bank with an application for a loan.