Buying a car, and especially at the expense of credit funds, is far from the cheapest pleasure. In addition to the principal amount of the loan, which reaches several hundred thousand rubles, the bank also has to pay interest, and considerable interest at that. Banking fees and auto insurance should also be added to the list of expenses that are an integral part of car loans. In order to reduce all upcoming costs to a minimum and apply for a car loan on the most favorable terms, it is necessary to study all the requirements and conditions of the bank in advance.
Credit amount
For the purchase of a car, banks are usually ready to provide the borrower with a loan ranging from 200 to 400 thousand rubles. Some credit organizations, of course, can provide loans from 50 thousand rubles, but there are not so many of them.
It is necessary to determine exactly what amount you need. It is also worth finding out which program you want to apply for a car loan - with or without a down payment. Under the classic car loan scheme, the down payment is approximately 30% of the cost of the car, while under other types of credit programs, the down payment can reach 50-60%. If the desire to acquire your own vehicle is so great, then you can buy it on credit even without a down payment, only the interest rate on such a loan will be much higher.
Loan terms
The period for which a car loan is issued will depend on several factors - on the bank itself, the loan amount and the interest rate. In most cases, banks issue car loans for a period of 1 to 3 years. Such a short period is due to the reluctance of the bank clients themselves to pay off the car loan for too long a period. In addition, when making a loan for such a period, you can count on a quite acceptable amount of overpayment.
Interest rate
In most cases, the main criterion for choosing a loan program is the size of the interest rate. The value of the interest rate on car loans rarely exceeds 16% per annum, but the latest trends in the lending market indicate that the level of this mark is rapidly declining. So, some credit organizations already today offer borrowers to take out a car on credit at only 10-12% per annum. The final interest rate will depend on the loan term, the amount of the down payment, the borrower's credit history and what package of documents he can provide to the bank.
What banks do not advertise?
Banks, offering customers various car loan programs, are often silent about the presence of all kinds of commissions that accompany these loans. While the borrowers themselves very often put their signature in the loan agreement without reading it, and learn about the additional commissions of the bank only when they start paying the loan. Considering that the size of the commission can reach 2% of the loan amount, it is easy to calculate that the total overpayment amount will be much higher than the bank initially advertised. It is important to carefully study all the points of the loan agreement before signing it.
Car insurance
When applying for a car loan, the borrower is faced with the need to insure both his car and his life. The cost of the insurance policy can be included in the total loan amount or paid from the borrower's own funds. Credit organizations, as a rule, work with only certain insurance companies, to which future car owners are sent. Some banks give their clients complete freedom in this regard - the borrower can choose an insurer himself or even take out a loan without insurance.
