Car loan for a used car without a down payment - features, conditions and reviews

A car loan for used cars comes to mind when there is not enough money for a new car. All kinds of advertising also contribute to these thoughts. Of course, a car loan for used cars has its disadvantages and advantages, which we will consider below.

Cons of a car loan

Each bank wants to protect itself as much as possible from the loss of money and takes all measures for this. And to some extent this is a minus for the borrower. Let us dwell in more detail:

1. There are a lot of failures for this type of loans. This is due to the fact that fraudsters or unscrupulous borrowers most often choose this particular loan option. That is why no more than forty percent of applications approve.
2. Large amount of payment. This item is also the reason for refusal because there is a monetary rate per person. It ranges from ten to fifteen thousand and applies only to dependents (children, non-working family members). If the amount of income, taking into account the loan, does not cover expenses for dependents, then the loan is refused.
3. Due to high risks, a banking organization increases the interest rate.
4. Reduced payout period. Most banks agree to issue a car loan for used cars without a down payment, but for a much shorter period. In order not to risk money, the bank can reduce the payment time to two years.
5. It will not be possible to take a car loan for used cars without proof of income.
6. It will not be possible to get a loan in one day, because the banking organization will very carefully check the borrower for the ability to repay the loan. This usually takes a couple of days.
7. Among other things, a car loan without a down payment on a used car can affect the borrower's credit history badly. Subsequently, the credited has a chance to be refused a large loan or mortgage.
8. Great cost of insurance. When approving a loan, any bank obliges the borrower to complete a comprehensive hull insurance. Some lenders also ask for insurance against loss of working capacity or life.

Benefits of a car loan

Unfortunately, the advantages of a car loan without a down payment on a used car are much less than the minuses, but they are also worth considering.

1. The opportunity to purchase a car that is new is more expensive. The same applies to the vehicle equipment.
2. No need to save money and wait, you can take a loan and immediately make a purchase.
3. The machine can immediately be used without waiting for anything.
4. Inflation or the pendulum of prices and exchange rates have no effect.
5. There is no risk of becoming a victim of a robbery or scammers.

Lending terms

There are points that determine whether a loan offer is beneficial or not. It:

• down payment amount;
• obligatory insurance of the borrower;
• commissions that the bank additionally imposes;
• loan term;
• early repayment option;
• security.

Nevertheless, no matter how much one would like, but most banking organizations require an initial contribution of ten to thirty percent. Yes, there are lenders who will issue a loan without a security deposit, but you will have to work hard to find them.

Important points

A car that is purchased on credit is its security. A pledge agreement is made on the car and the vehicle passport is in a banking organization. And only after paying off all the debt or when an insured event occurs, the borrower receives documents for the car.

Do not forget that used cars cannot be bought under state lending programs. If the borrower chose the car with it, then the only way out is to search for car dealerships with shares on interest on the loan.

If the loan term is from three to five years, then this is a profitable car loan for used cars.

Who can apply for a loan?

Any credit institution has not only its own conditions, but also individual requirements.

For example, it may be difficult to obtain a loan from those who previously violated the payment deadlines or are too young. The age threshold most often begins after twenty-three years.

Naturally, before issuing a car loan for used cars, the bank checks the car, its technical condition, age, number of previous owners, mileage. It is not surprising that banking organizations prefer to deal with machines manufactured abroad. This reduces the share of Russian used cars pledged. Car loan conditions for used cars only contribute to this.

Limitations

The borrower must meet the following criteria:

1. Age must not be less than twenty three years.
2. Permanent place of employment, the experience of which exceeds six months.
3. The borrower must be a citizen of Russia and have a permanent residence permit.
4. A satisfactory credit history without serious irregularities or delinquencies.

The machine should be:

1. Not older than eight years.
2. Foreign production.
3. Have no more than three owners.
4. Be in good technical condition.

Where to get a car?

Car banks provide a car loan for a used car in salons. That's because cars are checked there, and the bank has less risk when issuing a loan. To take a car from a private person, most likely you will have to take a consumer loan with a higher percentage.

Car loan in Sberbank

The conditions of a car loan for a used car in Sberbank in past years were quite profitable. Over time, this banking organization moved away from the issuance of such loans and transferred them to the subsidiary Setelem. With all neoplasms, the loan has pleasant conditions.

Loan characteristics:

• the term of issue is 5 years;
• a loan can be obtained no more than three million rubles;
• for registration, you need the right to drive a vehicle or passport;
• the application is considered no longer than half an hour;
• the down payment is present, but it is less than in other banks - only 20 percent of the amount;
• preference is given to foreign-made cars.

Government programs

It is quite difficult to find a car loan for a used car in St. Petersburg, Moscow or another large city. And, to determine the method of buying a car, you need to compare all the possible programs. For example, government offers for new and used cars are different.

Many manufacturers are developing a whole strategy to attract customers and improve lending conditions, which are actively offered by managers of official car dealerships. Below we will analyze in detail several automotive brands.

Audi

Today, this brand is part of the Volkswagen group. Loans can be obtained at their own bank in Russia - Volkswagen Rus Bank. Their main name is AudiCreditPlus. Interestingly, all the basic conditions depend on the set of documents of the borrower.

So, for example, when providing a full package of documents, the loanee can count on an interest rate from ten to twenty percent for a period of five years.

If the car was not purchased during the promotion period, the loan term is reduced to three years, and the down payment is increased to forty percent of the total. Under favorable conditions, it can make up fifteen percent of the value of the car.

When not all documents have been submitted, the conditions change. The interest rate now ranges from nineteen to twenty-one percent. The remaining conditions do not change.

Kia

Today, Korean cars are gaining popularity. To attract even more buyers, manufacturers have developed an authoring program called KiaFinance. Under the program, you can buy a car in two banking organizations - RusfinansBank, Setelem.

The first will offer an interest rate of twenty percent for a period of five years with an initial payment of twenty percent.

In the second, annual interest ranges from twenty-one to twenty-four. The loan term is not more than five years with a contribution of thirty percent of the cost of the car.

Skoda

At Volkswagen Bank you can get a car loan even for a used car, but only when the car is not older than five years. Another criterion is the presence of no more than two owners. The maximum loan term is five years, but it depends on various programs.

The standard includes a period of five years, an interest rate of eighteen to twenty-one percent, an initial payment of at least fifteen percent of the price of the vehicle.

The promotional program is an annual rate of fourteen to seventeen percent. The first installment is not less than forty percent of the cost, and the loan itself is issued no more than three years.

As you can see - a car loan without a down payment on a used car is hard to get, but if you try, there’s a way out.