What Agreements Should I Sign When I Get a Car Loan?

The naivety of compatriots in easy availability of a car loan, as well as any method of getting money "for free and for an hour," sometimes amazes. The mass of banks and credit institutions issues loans only after signing the contract. In general, the receipt of a loan for the implementation of any desire looks like this: we give you money, and you give us our money, your money, a percentage for using money and money for giving us your money. A bit strange, but in general, the whole scheme of car loan repayment looks like. A car loan is one of the types of cash loans that are specifically issued by a credit institution for the purchase of a vehicle for personal use. That is, buying a motorcycle, auto or other equipment - this is a car loan. A feature of this type of loan is that the passport for the vehicle remains with the borrower. The PTA must be transferred to the bank within the time specified in the contract, and if this does not happen, fines are imposed. Responsibility for the first item can not be ignored - starting a credit history on the negative side and mistrust of the bank is unreasonable. If the transaction occurs in the showroom, where there are representatives of the bank that issued a loan for the car, then there is no problem with the transfer of documents. Take a car loan without a certificate of income or car loan without an initial installment is impossible. This is just an advertising trick of marketers.

The representation of the bank in the showroom assumes the following functions: preliminary approval of the application, scoring - assessment of the borrower's creditworthiness, signing of a loan agreement, preparation of documents and transfer to the bank.

Scoring is the most important moment when a bank considers a borrower and in points determines how much it can pay depending on income. The veracity of the completed documents can be checked by a specialist, but confirmation is required.

If the representatives of the bank are in the same room as the car dealer, then immediately on the spot the contract of sale of the car is signed by the credit expert. Often, customers of car dealers are lost and believe that it is necessary to sign one contract. In fact, there are two contracts - one contract with a car dealership and payment of an initial installment, and a contract for the issuance of a certain loan amount is signed with the bank. Often a bank can change the amount of a loan intended to buy a car in the direction of both a reduction and an increase. Determined with the purchase of a car and its bundling is best already in the showroom. There they can offer to install additional equipment - parktronic, navigator, air conditioning. Often this can include a car loan. All questions regarding the issue of car loans can be clarified in the credit department of the car dealership or directly in the bank.

Tanya Steinberg, Analyst