Where and how to get a car loan for a car?

Not everyone who wants to buy a car will immediately have the money to pay for such a purchase. Therefore, car loans are by far a very popular and affordable way to buy your own car.

What are the features of a car loan

A car loan is a targeted loan for the purchase of a car. You can get a car loan in a bank with the condition that the car will serve as a bank deposit. Based on this, the bank reduces risks and takes less interest on the loan.

As a rule, the rate for a car loan is less than for a cash loan. But in case of non-payment of a loan, the car is withdrawn by the bank and sold for repayment of the loan.

Most often, the bank requires the borrower to insure the car under the CASCO program. In case of theft or damage to the car during an accident, the bank will receive insurance. The owner of the car must renew the insurance annually, otherwise the bank will apply penalties to the borrower.

Before repaying a car loan, the passport for the car must be in the bank. If you need it, then you need to turn to the bank and decide with him the question of how it can be received and when it is necessary to return.

Where to get a car loan?

There are many different banks in Russia. But after 2014 a large number of financial and credit organizations stopped issuing loans for the purchase of cars, replacing them with consumer loans with simplified conditions.

It can be noted that few rating banking institutions offer such a targeted loan in 2017. In most cases, interest rates on auto loans are the same as for consumer loans. Although before the difference was quite noticeable.

Name of the bank	% Per annum	Loan amount, rub	Term of issue	What machines		For how long is the	Initial payment,% of car cost
				Newest	Boo
"East Bank"	19	100 thousand rubles. - 10 million rubles	1 to 5 years	+	+	At once	-
"Knoxbank"	12	100 thousand rubles. - 10 million rubles	From 3 to 10 years	+	+	During one week	-
"Alfa Bank"	12.5	100 thousand rubles. - 5.6 million rubles	From 1 to 6 years	+	+		From 10
"VTB 24"	17.9	150 thousand rubles. - 1 million rubles	From 1 to 7 years	+	+		20
Raiffeisenbank	6.4-14	50 thousand rubles. - 3 million rubles	1 to 5 years	+	+	Within one working day	15 to 40
"Rosselkhozbank"	17.5	Up to 3 million rubles	Up to 5 years	+	+	Up to 4 days	From 15
Sberbank	11.5	Up to 10 million rubles	Up to 6 years	+	+		-

The most attractive terms are offered by "Knoxbank". But you can get a car loan in this bank only to residents of the Volgograd region.

Alfa-Bank also offers quite attractive loan terms. Here you can opt out of CASCO insurance. If you do not receive a salary through this bank, then you will be given a car loan at a rate of 15.5% per annum.

The terms "VTB 24" are the most balanced at the rates and requirements for the borrower. But in this bank it is necessary to pay the first installment at a rate of 20% from all cost of the acquired car.

Car loans from Raiffeisenbank are ideal for borrowers with high earnings living in large cities of Russia.

Speaking about how to get a car loan in Sberbank, it is necessary to note also quite favorable conditions of this bank. The interest rate here is one of the lowest. To get a loan for a car here can almost every citizen of Russia.

If you receive a salary in Sberbank, the bank will issue a decision on issuing such a loan within 2 hours. If the customer has the opportunity to make an initial payment of 30% of the value of the car, the bank will not require a certificate of income, a copy of the labor and the availability of guarantors.

An even bigger advantage of Sberbank's car loan is that the amount of CASCO insurance can be included in the loan amount.

They give an opportunity to get a car loan without an initial payment of " East Bank", "Knoxbank" and Sberbank.

If you decide to receive a targeted loan for the purchase of a domestic car, then such purchases are provided by state support, which is very beneficial for the borrower.

How to get a car loan?

Getting a loan for a car includes the following stages:

• Preparation of documents and drawing up an application for a loan;
• The bank's decision to issue a loan for a certain amount of money;
• Choosing a car in the cabin, signing a purchase agreement, making an initial payment (if it is provided);
• Signing of a loan agreement;
• Registration of CASCO insurance;
• Payment by the bank of the cost of the car to the car dealer;

After that, the citizen can pick up the car and register it.

Before you get a car loan, you need to find out the full list of documents in the bank. Financial and credit organizations can request additional papers or information.

An Important Moment

The loan for the car can be issued first of all in the bank branch. The second option is a car dealership, where a representative office of a certain bank can be located.

It's up to the borrower to decide where to get a car loan. It is important to find out what lending conditions and in which bank will be most beneficial for you personally. Be careful not to make an impulse purchase by taking a loan in the cabin. The percentage there may be higher than in the bank branch.

Disadvantages of car loans

The car loan imposes certain obligations on the borrower and has its negative aspects:

• A pretty strong appreciation of the car compared to buying it for cash.
• It is necessary to repay the debt on a monthly basis. Before you get a loan, you need to calculate your financial possibilities.
• Before repaying the loan, the car is a bank guarantee, and it can only be sold or donated with the permission of the bank.
• As a rule, when you apply for a car loan, you always need to pay CASCO insurance, which is quite a considerable amount. Most often, the insurance company chooses the insurance company, and the amount of insurance can be higher than that of other insurance companies.
• If the car got into an accident, the amount of insurance money paid is sent to the bank, and the owner will not be able to repair the machine for these funds.

Requirements for the borrower

Each bank puts forward its conditions for obtaining a loan. But usually you can take a car loan if you meet the following requirements:

• The borrower has Russian citizenship;
• The age of a citizen receiving a car loan should be within 23-65 years;
• Work experience in the Russian territory for the prescribed period.

In addition, credit organizations require you to name several phone numbers (work, personal, phone number of friends).

How do I get a loan for a car with mileage?

Used cars are cheaper than new, and their condition can be no worse than the new one. Consider how to get a car loan for a car with mileage.

Usually banks set the following conditions for used cars:

Options	For foreign cars	For domestic cars
Age	Not more than 10 years	Not more than 5 years
Amount of credit	Usually set by the bank in the amount of 500 thousand rubles. Up to 1.5 million rubles	Similarly
Machine weight	Up to 3.5 tons	Similarly
Mileage	Up to 100 thousand km	Up to 50 thousand km

Registration of the CASCO policy is mandatory.

The loan recipient for a used car must meet specific requirements:

• Be over 21 years of age;
• Have a total seniority of more than one calendar year;
• The work experience at the moment in the organization for more than six months, and for some banks 3-4 months is enough;
• Be a citizen of Russia and have a residence permit in the city where he makes out a car loan;
• Have a positive credit history.

It is easier to get a car loan for drivers with a driving experience. Reluctantly, banks issue such loans to young people and people of retirement age.

A loan for a new or used car can be obtained at the bank branch or at the motor show. It is most profitable to do this in a bank through which you receive a salary. For example, citizens who have pay cards in Alfa-Bank can receive a car loan at 12.5% per annum, and on general terms the rate will be 16%.

The process of obtaining a loan for a used car

To get a car loan for a used car, you need to go the following way.

Choose a credit institution, compare the proposals of different banks, their programs, interest rates and terms of issuing loans. Thinking about how to get a car loan, you need to clarify whether there is a representation of the bank you like in your area. Preference should be given to proven banks with a good reputation.

You can apply for a personal visit to a bank or via the Internet.

It is necessary to have the following documents with you:

• passport;
• Certificate of income from work;
• driver's license;
• Copy of work book.

The bank then considers the application. After the application is approved, the borrower is given a period of 1 to 3 months if necessary to search for a car.

After that, the contract of sale with the seller of the car is made out. Also mandatory is the registration of CASCO. This increases the amount of bank payments to the borrower.

The initial payment is transferred to the bank account, from where the money is transferred to the car dealership. The average amount of this contribution is usually 20% of the purchase price.

With special attention should be approached to formalize a loan agreement. The document must be thoroughly studied. It is necessary to pay attention to the following nuances:

• The final value of the interest rate. It happens that they advertise one, but actually provide a large one.
• The presence of commission payments for the implementation of financial transactions (they are also called hidden).
• What are the options for repaying the loan.

After they received a car loan for a car and bought it, it remains only to be registered in the traffic police. After that you become the rightful owner of the car.

Good advice on buying a used car

Buy a used car in the cabin. So you can avoid buying a defective or stolen car. Moreover, often car dealers organize actions for the sale of used cars.

If you do not have a small amount to buy, a car loan is better to prefer a consumer loan.

There are also such specialists as credit brokers. They know how to get a car loan on more favorable terms. Brokers will help you choose the most optimal loan program.

Getting a car loan with a bad credit history

If earlier you allowed delinquencies in repaying other loans, then most likely this will affect your credit reputation negatively.

Before you get a car loan with a bad credit history, you should contact the credit bureau for information. If it states that you have delinquencies, you need to repay them urgently. In the event that any erroneous data on delinquency is indicated, it is necessary to apply to the bank to resolve this issue.

To improve the credit history, you can take a few small loans and pay them off on time and in full.

You can still apply to small or newly opened financial and credit organizations. Such institutions are looking for clients and agree to set not too stringent conditions for borrowers.

Another option is to apply for loans to microfinance institutions, pawnshops or financial companies to whom the client's credit history is not important. But interest rates in such organizations are much higher than in banks.

How to improve the reputation of a borrower

Also, you can increase the probability of obtaining a car loan in the presence of a negative credit history in the following ways:

• Find a surety with an excellent credit reputation;
• Submit to the bank a certificate of high income or possession of expensive valuables;
• Provide a security deposit;
• Make an advance payment of 50% of the cost of the purchased car.

Getting a loan for a car via the Internet

Almost any bank today offers to apply for a loan through the Internet. To do this, in a special form, you must specify your personal data, loan amount and other information.

After that, the bank will issue a preliminary opinion on the possibility of issuing a loan to you. But still have to personally come to the bank to provide the required package of documents and signing the contract.

Car loan - take it or not?

The auto loan has many negative sides, but there are also positive moments. It is necessary to carefully analyze all possible proposals of banks, their credit programs, calculate the overpayment and other mandatory costs for car loans and compare them with overpayments for a simple consumer loan. Also it is necessary to take into account the possibility of state support when buying a domestic car.

To understand this sea of nuances and terms of loans of different banks, do not be afraid to resort to the help of professional credit brokers.

Take care of your credit reputation. After all, if it is bad, getting a loan for a car will be much more difficult.

Car loans can be carried out both for new and second-hand machines. A better car is better to buy in the showroom, because it will be guaranteed not in hijacking and not broken.