The content of the article:
- Advantages and disadvantages of a car loan
- Loan or car loan
- How to choose the best bank
- Rating of the best banks for obtaining a car loan
It is difficult to imagine a modern person without a car. Moreover, in the absence of the required amount for the purchase, many motorists, without hesitation, turn to the bank, although this entails certain long-term obligations.
How to choose the right bank for obtaining a car loan - in our review.
Advantages and disadvantages of a car loan
Advertising companies of banks are convincing that purchasing a car using credit funds is a simple and inexpensive procedure. But is it really so?
Among the positive aspects of a car loan, the following can be noted:
- ease of registration;
- the ability to immediately start using the car, paying for it gradually;
- quick receipt of almost any amount of credit funds;
- long period of loan repayment;
- automatic registration of the CASCO policy.
Not a single financial product is complete without drawbacks, which in this case should be called:
- the likelihood of disapproval of the loan based on the results of verification of the applicant and his solvency;
- a long period of payments causes a high level of overpayment for a car, even with a low interest rate;
- limitation of the lineup, which is set by some banks in agreement with official dealers;
- the difficulty of acquiring a used car due to the increased requirements of the bank and the increased interest rate;
- the need for an initial payment, the amount of which differs depending on the conditions of the banks;
- issuing a CASCO policy can equally be attributed to disadvantages, since, designed to preserve the property owned by the bank, it will cost the car owner a substantial amount;
- any financial institution includes hidden commissions and payments in the contract.
Loan or car loan
Both financial procedures have a number of positive and negative aspects, so each of them should be studied depending on the conditions of the banks.
When buying a budget car, you can pay for it in a short time, it is recommended to prefer a consumer loan for the following reasons:
- the car will immediately be owned by the owner;
- if financial difficulties arise, the owner will be able to sell his vehicle and cover the debts;
- the motorist gets rid of the obligation to purchase a CASCO policy;
- with a consumer loan, it is easier to buy a car on the secondary market.
On the other hand, car loans provide significantly larger amounts of money, while having a low interest rate and various kinds of preferential programs.
Car loan options
Types of car loans valid in 2019:
- for the purchase of a new car from an authorized dealer with an initial payment and the obligatory registration of a CASCO policy;
- for the purchase of a used car, which will also require a CASCO policy, increase the interest rate and does not always require the approval of the bank;
- cars from the state support program, a limited range, but with a reduced down payment and a small interest rate;
- trade-in program, which allows you to hand over your car as a down payment for a new one, which, even at a lower bank price, eliminates the need to find a buyer .;
- deferred payment service, assuming the borrower chooses the size of the monthly payment with a deferral of the remaining amount for the last payment;
- separate programs for the purchase of commercial vehicles.
How to choose the best bank
When choosing a financial institution, the consumer can familiarize himself with the rating of banks, compiled by various agencies and based on financial data provided by the Central Bank. However, not everyone is deeply versed in assets, liabilities and depositories, so a potential client is advised to pay attention to the following aspects:
1. Requirements for applicants
So, different banks have differentiated requirements for the age of the client. Mostly a car loan can be obtained by persons aged 21-65, but some banks, for example, Cetelem Bank, consider applicants from 18 to 75 years old.
2. Car loan programs
Considering a particular bank, one should study all the lending programs offered by him, among which may be:
- standard, provided with a complete set of documents;
- express loan, for which you only need a passport and driver's license, but which will offer high interest;
- the presence or absence of a trade-in system;
- the presence or absence of program B, which provides for the approval of a car loan with a buyback option.
3. Conditions of a car loan
Among the important factors that will be emphasized when approving a loan or in its refusal, it is possible to note:
- a list of vehicles for which the bank is ready to provide a loan, including their condition. Since a number of banks cooperate exclusively with car dealerships, they do not provide loans for used cars;
- the maximum size of a car loan;
- loan repayment period;
- interest rate level;
- the requirement for a down payment and its size;
- requirements for issuing a CASCO policy.
4. Other important aspects
- The amount of penalties in case of delay in payments.
Most often, interest is 1% of the amount owed for each day overdue, but there may be other penalties for breach of contract. - The likelihood of seizure of the car in order to pay off credit debt.
- The presence of reviews from other clients of the bank, including those who used the car loan service.
Rating of the best banks for obtaining a car loan
Sberbank
The largest bank in the country is in the lead in the rating, whose terms seem favorable to clients, although in fact, its subsidiary, Cetelem Bank, is engaged in car loans.
The bank provides car loans both for new and for cars from the secondary market. Among the requirements for borrowers: Russian citizenship, borrower age - 21-75 years, permanent registration in one of the regions of the bank's presence.
To obtain a loan, an initial payment of 15% of the value of the car will be required. The size of the interest rate will depend on whether the car is purchased new or used, as well as whether the borrower participates in one of the car loan programs offered by the bank.
Tinkoff
A car loan in this bank attracts by the fact that it does not require an initial payment and proof of income, and also allows you to purchase a new or used car.
In 2019, the car loan rate is 9.9%, and the maximum loan size is up to 2 million rubles. In addition, the bank independently checks the car for "reliability" on the bases of the traffic police and the Federal Tax Service for the presence of fines, debts, bans.
At the same time, the bank does not interfere with the choice of the future vehicle by the client, providing absolute freedom of action. Upon completion of the transaction, the car owner will need to provide a copy of the purchase and sale agreement and PTS.
To apply for a car loan, you only need a passport and a driver's license, while the borrower's age must be in the range of 18-70 years.
VTB
This bank also allows the purchase of a car in the secondary market and from an authorized dealer, offering different conditions and interest rates depending on the vehicle chosen.
So, for the purchase of a new model, a financial organization is ready to allocate up to 7 million.rubles for a period of 7 years and a rate of 3.5%. For a used car from a private seller, the rate will increase to 8%, and the maximum loan amount will be 3 million rubles, while a used car from the salon will cost only 2.5%, while the maximum loan amount will rise to 5 million rubles.
In addition, the bank has a program for refinancing current car loans issued by other banks, and also offers to purchase commercial and motor vehicles with borrowed funds.
Center-Invest
The client will be able to choose for himself one of the three proposed financing schemes:
- a program with a 9.5% rate exclusively for new light vehicles, the initial payment for which must be at least 20%;
- purchase of any car with a 13.75% rate and a 10% down payment;
- purchase of any commercial vehicle with a rate of 16.25% and an advance payment of 20%.
UralSib
This bank provides car loans for the purchase of new cars under the Autopartner program. It provides for a loan of up to 5 million rubles at a rate of 10.9%, while the down payment must be at least 20% of the cost of the car.
Also, this financial organization offers a special program that eliminates the need to issue a CASCO policy, although the rate on such a loan will already be 14.8%. It is also possible to buy a used car using the same scheme.
An interesting program is the possibility of a residual payment, the amount of which should not be more than 45% of the value of the vehicle, and the last payment can be made in cash, after the sale of the car through a car dealership or as a result of the delivery of the vehicle by trade-in.
Conclusion
Many credit institutions are trying to take advantage of the legal and financial illiteracy of most of their clients. This is too complex wording, and veiled additional costs, and the notorious fine print. Thus, even at low interest rates, banks still receive compensation in other ways.
Therefore, in order not to receive imposed services, not to overpay large amounts, borrowers are advised to first obtain comprehensive information about all auto loan offers of banks, analyze the benefits and inconveniences of each of them, in order to fully enjoy their purchase later.
