Loan On Used Auto - Is It Really Li?

Many banks today give out loans for used cars. The sizes of such loans fluctuate within the limits of 10-15 thousand dollars, so, they are accessible to any person with stable work and average wages. However, be prepared for the fact that when you receive a loan for a used car, you will have to wait for a lot of restrictions.
The first nuance that any borrower will immediately face is the limited choice of the seller of the car. Banks often issue loans for the purchase of used cars from official dealers or in car markets, that is, to buy cars from a private person, the loan does not give the opportunity, because from the bank's point of view the probability of misuse of money is high. Also, according to bankers, buying a car through the showroom reduces the legal risks of both the financial institution and its client, while the used car site contains different offers, and not all of them are honest.
The registration of a loan and a purchase in this case is simple, as in ordinary lending. You will only need to choose a car with a run on the market or in the showroom, and then provide the bank with the appropriate package of documents depending on the car loan program. Usually, after a few days, the financial institution makes a decision to grant a loan, draw up a relevant agreement and, if necessary, a surety agreement. The client provides a car purchase and sale agreement with a notarized copy of the vehicle's passport that will be kept in the bank until the loan is fully repaid. Then the borrower makes an initial payment, the bank makes out a pledge agreement, a loan is granted.
Some people believe that buying a used car for borrowed funds can be profitable, but only if you choose consumer lending. This is not so - special loan programs are "sharpened" for the purchase of cars, the application is considered faster, and at a price the car loan is more profitable.
And do not forget that the rates for CASCO for used cars will be much higher than for new ones. On average, car insurance at the age of six years will cost at least one and a half times higher than the insurance of a brand new car. The minimum down payment on getting a loan to buy a car with a mileage above. The maximum term of the loan usually does not exceed for used machines of three years, when as a loan for new cars in many banks can take for a period of five to seven years.