Loan for car purchase

At present, competition in the banking sector is so great that it is easy to get a loan to buy a car. The terms of the loan are not very different, therefore, very often special programs are offered, promotions are held, calling to take the right amount of money in this bank, and not in another. What should you pay attention first of all, when making a loan for the purchase of a car, so as not to be mistaken?

Statistics show that for cash in Russia only about 20% of cars are purchased, therefore, the remaining 80% are bought in debt. Therefore, the saying "demand generates supply" is very appropriate for this situation. On average, the interest rate is 13-21% per annum for a period of 1 to 3 years. Buying a car on credit - the topic is very relevant.

What are the nuances of special auto loan programs? More often banks carry out such programs together with car dealerships. Here, both the interest rate and the down payment can be reduced, as well as the crediting period. The loan for buying a car from a car dealership for such shares is not very popular among the population. Typically, this is due to the fact that a person is determined with the choice of brand before the loan, so this proposal does not suit him. If you are interested in a special program, carefully read the contract. In some cases, low interest rates may conceal large commissions, special insurance conditions and other additional payments.

Express car loan is a frequent offer in recent years. The conditions are rather 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 council is still the same - pay attention to the conditions to avoid negative consequences.

With auto loan, in principle, everything is clear, but how can I get a loan to buy a car bu? In car dealers only new cars are sold, and loans simply do not exist to buy a vehicle on the secondary market . You can, of course, take the same express loan, but its distinctive feature (besides high interest rates) is also a short loan period, which does not suit many borrowers. It is worth paying attention to non-targeted loans offered by virtually every bank in the country. Its advantages are obvious. First, the car you buy will be your property (with a car loan it will be pledged to the bank before the final repayment of the debt). Secondly, the possibility of an independent choice of the company, the term of insurance and its type. To the disadvantages of consumer non-earmarked lending can be attributed slightly higher interest rates, the limitation of maturity (not typical for all banks) and its design features.

Buying a car is a responsible business, especially on credit. So think a few times, weigh all the minuses and pluses and only then go to the bank with a request for a loan.