Credit For Used Cars - Is It Real?

Many banks today issue loans for used cars. The size of such loans ranges from 10-15 thousand dollars, which means that they are affordable for any person with stable jobs and average wages. However, be prepared for the fact that when you receive a loan for a used car, you will find many restrictions.
The first nuance that any borrower will immediately face is the limited choice of a car seller. Banks most often give loans to buy used cars from authorized dealers or in car markets, that is, a targeted loan does not allow buying a car from a private person, since from the point of view of the bank there is a high probability of misuse of money. Also, according to bankers, buying a car through a salon reduces the legal risks of both the financial institution and its client, while used car site contains various offers, and not all of them are honest.
Making a loan and buying in this case is simple, as with conventional lending. You will only need to choose a used car in the market or at a car dealership, and then provide the bank with the appropriate package of documents, depending on the car loan program. Usually, after a few days, the financial institution makes a decision on the provision of a loan, draws up an appropriate agreement and, if necessary, a guarantee agreement. The client provides a car purchase and sale agreement with a notarized copy of the vehicle passport, which will be stored in the bank until the loan is fully repaid. Then the borrower makes an initial payment, the bank draws up a pledge agreement, a loan is provided.
Some people believe that buy a used car borrowed funds can be profitable, but only if you choose consumer lending. This is not so - special lending programs are “tailored” for the purchase of a car, the application is considered faster, and the price of a car loan is more profitable.
And do not forget that the tariffs for CASCO for used cars will be much higher than for new ones. On average, car insurance at the age of six will cost at least one and a half times higher than the insurance of a brand new car. The minimum down payment when obtaining a loan to buy a used car is higher. The maximum loan term most often does not exceed three years for used cars, when a loan for new cars at many banks can be taken for a period of five to seven years.