At present, competition in the banking sector is so great that getting a car loan is easy. Loan conditions are not very different, so special programs are often offered, promotions are in progress, and require the right amount of money to be received at this particular bank and not at another. What should be the first thing to do when applying for a car loan so that it is not wrong?
Statistics show that only about 20% of cars acquire cash in Russia, so the remaining 80% is purchased on credit. Therefore, the word “demand generates supply” is very appropriate for this situation. The average interest rate is 13-21% per year for 1 to 3 years. Buying a car on credit is a very relevant topic.
What are the nuances of special programs – car loans?
Most often banks implement these programs in conjunction with car dealers. Here you can reduce the interest rate and advance as well as extend the loan period. The loan to buy a car from a dealership for such shares is not particularly popular with the public. Fairly because of the fact that a person is determined to choose a brand before lending, so this offer does not suit him. If you are interested in the special program, please read the agreement carefully. In some cases, low interest rates may hide large commissions, special insurance policies, and other additional payments.
Express Car Loan
Often a session proposal in recent years. Conditions are quite attractive: minimal background, quick decision making, no collateral and no guarantor. Of course, the interest rate here is much higher, but that doesn’t stop much. Counseling is the same – pay attention to the conditions to avoid negative consequences.
Basically everything is clear with a car loan, but how can I get a car loan? Showrooms are sold only to new cars and loans to buy a car in the secondary market does not exist. You can of course have the same quick loan, but is also its characteristic feature (in addition to the high interest rate) of a small loan period that does not suit many borrowers. They should pay attention to non-purpose loans offered by almost all banks in the country. Its advantages are obvious. First, buy a car is your property (for a car loan, it will be pledged in favor of the bank until the final debt repayment).Secondly, the possibility of own choice of companies, life insurance and its types.By negatives of consumer credit abuse can be attributed to somewhat higher interest rates, maturity constraints and their specific design.
Buying a car is a responsible business, especially on credit. So I think a few times, consider all the disadvantages and advantages and only then go to the bank with a loan application.