Recently, among citizens who are planning to buy a car on credit, there has been a tendency to apply for a purchase to a specialized banking institution. The main task of a specialized institution is to serve clearly one direction. In this case, we are talking about caping banks.
The main activity of such credit institutions is aimed at providing car loans. Even in conditions of fierce competition from large and stable banks, today the priority is given to caping banks. Contacting such institutions greatly simplifies the entire process of obtaining a car loan. This is due to the very favorable interest rates and loyal lending conditions, thanks to which capting organizations primarily represent the interests of car manufacturers.
Reasons for the emergence of captive financial institutions
Capturing organizations are a new direction in credit and financial policy that is gaining momentum. Currently, there is a proven scheme for obtaining a loan "client-salon-lender". The disadvantages of this system are obvious to many clients. The disadvantage of this scheme is that lenders set maximum interest rates on loans and require that the purchased car be provided as collateral.
Today, on the financial services market, you can find banks with the same name of the car: Toyota Bank, Mitsubishi Credit, Citroen Bank and many others. These banks exist exclusively with the support of manufacturing companies. As a result, caping banks offer low loan rates and simplified lending conditions. In most cases, there is an individual loan program for each brand.
Benefits of capturing establishments
The most important advantage lies in the close partnership between the bank and the manufacturing company. Thanks to such close cooperation, the client gets a wonderful opportunity to get a loan on favorable terms.
Capturing companies can only compete with banks operating under the concessional government lending program. Such programs are advertised by many large banks, without disclosing that within the framework of this program it is possible to purchase an unfriendly vehicle.
Capturing companies actively follow the proposals of other banks and change programs for the better every time. Thanks to this, buyers can purchase a car on better terms. Currently, the loan rate in many caping companies does not exceed 8% per annum.
