Nowadays, the car is not only a means of movement, but a demonstration of personal status. Many people dream of buying a car, or about buying a new, more expensive car, and are ready to take a bank loan for this.
Car loaning is called a collateral loan, usually from 1 to 7 years. The pledge, in this case, is the purchased car.
Interest rate, in this case, is lower than in ordinary consumer loan. In addition, the requirements for income and documents are easier, but there are several nuances:
You need to understand that the car remains the property of the bank, until the whole amount of borrowed money, plus the interest rate, will not be paid.
I need risk insurance. In addition, it is in one of those companies that the bank will show you.
It is not always the bank that the car dealership that you chose.
If you have decided on the insurance company and the car dealership, then the next step will be the paperwork. You can learn more about this, for example, here:
Still, you should not run and choose a suitable bank. In any car dealership, you will be provided with a huge list of banks, so you can choose it already on the spot. Often representatives of certain banks may even be present in the salons, which allows you to get a loan right on the spot. But it is better to choose the one that will be more convenient and better in your opinion.
There are several types of car loans.
Interest -free – when the seller gives the car to a commercial installment plan. Such debt immediately goes to the bank.
Casco loan. This type of loan is issued without insurance, but the interest rate is much higher than others.
Without an initial contribution.
Without a pledge – a type of lending, when a key is not needed. Very similar to a regular consumer loan, or when a regular credit card is used for a passport. Bets, in this case, slightly higher.
The loan for used cars is characterized by high percentages, as well as a large initial contribution.
Buy Back. It provides for the possibility of acquiring a new car with the possibility of a return at the end of the term under the contract.
Trade in – the ability to make a first fee by selling an existing car.
Buying a car on credit has long been very popular. Banks provide many options for this, and you only need to make a choice and tomorrow you can get behind the wheel of a personal car.