Many potential clients of the bank are unhappy with the fact that when applying for a car loan, it is necessary to make an initial payment and insure the car under CASCO, the cost of which can be up to 10% of the full price of the car. This means that the total cost of a loan with an initial payment (about 10%) and insurance, as a result, can amount to a fairly substantial amount: more than 20% of the initial price of the purchased car.
Of course, after such simple calculations, most potential borrowers are trying to find more favorable lending terms. And in this regard, a very relevant question appears: "What is necessary to obtain a car loan without insurance and a down payment?"
Over time, banking organizations began to understand that not all citizens have even an insignificant amount of the cost of most new products in the car market, so most banks softened their conditions and began to offer quite acceptable loans, rather than competing ones. Currently, there is such a fierce battle for each client that the process of obtaining loans has become so simple that it is no longer a serious problem for most borrowers.
To obtain a car loan without a down payment, the borrower can use a special loan product that provides for this loan. Naturally, the interest rate becomes significantly higher than usual, which as a result increases the final overpayment of the loan by an impressive amount. In addition, a car loan without an initial payment can be issued only upon presentation of money-back guarantees, for example, a property pledge that at least exceeds the amount taken by 20% (this means that you cannot leave the purchased car as a pledge). A surety of third parties is also possible, then there is absolutely no need for a pledge of property.
If you decide to opt out of insurance, then you must be prepared for the fact that your interest rate will increase.
Summing up, it can be noted that now banks are full of various offers, which means that there will be no special problems with obtaining a car loan without a down payment and without insurance. At the same time, do not forget that from the refusal of the necessary requirements, the percentage of your loan will only become higher, and, therefore, can you first accumulate the necessary amount for an initial payment, and then proceed with the registration of a car loan?
