Not everyone can buy a car for cash. The way out of this situation can be the registration of a car loan. It can be provided by banking institutions and car dealerships.
Loan for the purchase of a vehicle in a car dealership
Applying for a loan to buy a car at a car dealership can significantly reduce time costs and save nerves, but not save the family budget.
The documentation processing procedure, as a rule, takes no more than a couple of hours. This does not involve the collection of numerous certificates. From the documents, you only need a passport, a driver's license of the borrower or a trustee who will drive the transport, an application and a questionnaire.
In most cases, salons cooperate with several banks at once. This allows you to choose the most beneficial option for the borrower.
Another indisputable advantage of applying for a loan at a car dealership is the fact that you can buy a car over 5 years old. Banks will not be able to do this.
There are many advantages to lending in a car dealership, but there is also a significant disadvantage. Such loans come at an inflated interest rate. If the bank provides a loan at 9-17%, then in the salon this figure can reach 25%.
Loan for the purchase of a vehicle from the bank
Banks provide loans at a lower interest rate than car dealerships. However, their general requirements for obtaining a loan are much stricter.
Most banks, in addition to the above list of documents, ask for a photocopy of a work book, an agreement with a car dealership, a vehicle passport (PTS), a 2-NDFL certificate from the official place of work. If the borrower works for a private person, then due to the lack of the last document, he may be denied a loan. The completed application will be considered by the bank within a few days. During this time, the borrower's credit history, his solvency, and the risks of granting a loan will be checked.
Banks have restrictions on driving experience. It must be at least 12 months old. In addition, it is necessary that the total length of service is at least a year, and at the last place of work - at least six months.
To obtain a loan from a bank, it is necessary that the size of the family income be 60-70% higher than the monthly payments on the loan. Moreover, if the borrower is officially married, the written consent of the spouse will be required to complete the transaction.
As mentioned above, a loan for the purchase of a used car is considered by banks only if it is not older than 5 years. In addition, in the case of car loans in banking structures, the choice of car brands is limited. This is due to the fact that in this case, loans are provided only for the purchase of vehicles in partner car dealerships. In this situation, you have to either be content with the proposed options, or look for suitable banks.
Thus, each option has its own advantages and disadvantages. Therefore, choosing a place for car loans should be based on the characteristics of each specific case.
