What is a car loan and what are the conditions for obtaining it? Requirements for the borrower and conditions for obtaining a car loan What is included in a car loan

Few people happily pass exams, but from time to time you have to deal with similar situations.

In particular, when applying to a bank for a loan to buy a car, a person will have to pass a certain exam for compliance with the requirements put forward by banks.

No matter how prosperous and successful a person seems to be, there is always a risk of being rejected.

To avoid this and get a car loan, the requirements for the borrower need to be studied and try to meet them.

One of the defining moments in the process of consideration by the bank of the application is the general financial situation of the potential borrower.

Most modern banks are ready to issue a car loan, the monthly payment in which will be no more than half or a third of a person's income. For this reason, it is important for the borrower to demonstrate and confirm their solvency and financial solvency.

The official confirmation of the received salary is a certificate 2-NDFL.

If a person works under a contract or receives a salary “in an envelope”, the bank can accept a certificate of income received in free form, but it must be certified by the seal and signature of the employer.

The desire to get a car loan is not a situation in which you need to hide your income. The more documents are provided, the more the bank will be sure of the person's creditworthiness.

There are quite a few options for certificates and documents that can be proof of income received:

• certificate 2-NDFL;
• statements from a personal or salary account;
• copies of contracts for the lease of real estate.

To confirm a stable financial situation, you will need to provide documents for the ownership of an apartment, a summer house, and garages.

This is especially important if the borrower has previously had a damaged credit history.. You can increase your chances of getting a car loan by making a down payment, which should be at least 10%.

In the process of obtaining a car loan, it should be understood that the higher the bank's confidence in the borrower, the more likely it is to get a car loan with the most favorable conditions.

Video: What salary is needed to get a car loan?

In the process of obtaining a loan such as a car loan, the requirements and conditions that must be followed for 2019 relate not only to the financial situation, but also to certain social issues.

Among the main requirements for borrowers, one can note not only the level of a person’s financial situation, but also his social, civil and professional status.

The requirements for this category include the following factors:

1. The term of work in the last place must be at least six months.
2. Total work experience from 1 to 3 years.
3. Passport and driver's license.
4. The age of the borrower is not younger than 21-22 years, the maximum age is 55-60 years.
5. Citizenship of the Russian Federation.
6. Permanent registration in the settlement of circulation.

If you meet all the requirements listed above, you can count on the fact that a car loan will be issued with a greater probability, moreover, the conditions will be as comfortable as possible.

Modern legislation on obtaining a car loan requires mandatory insurance of the purchased car, which will be the subject of collateral.

Despite the fact that lending primarily protects the interests of the lender, they will also be beneficial for the borrower, as they will ensure a two-way comfortable and safe transaction for obtaining a car loan.

Car insurance guarantees material protection to the bank in case of full or partial permission of the car as a result of an accident or emergency.

The compensation received under insurance will help close the balance of the debt, respectively, the bank will receive its funds, and the borrower will be relieved of loan obligations on a car loan.

A modern financial institution is much more willing to issue a loan for a new or used car, subject to certain requirements for a car.

They differ slightly depending on the type of car, as well as on the bank itself, but here are the main, generally accepted factors that must be observed:

1. The vehicle should not exceed 6-7 years of operation.
2. For the period of lending, the car must be under CASCO insurance.
3. The vehicle must pass a technical inspection for general condition. At this stage, an official document is issued, which is attached to the application for a car loan.

If these requirements are met, a bank client can receive a car loan for a period of 1 to 8 years.

At the same time, you need to know that the shorter the loan term, the higher the established interest rate on a car loan will be. The amount of the down payment will also matter.

Different financial institutions have certain requirements for the package of documents provided. It is worth familiarizing yourself with them in advance so that you do not have to draw up and deliver documents later.

Most modern banks for obtaining a loan for a car are asked to prepare the following documents:

1. A copy of all pages of the passport of the person who draws up the loan. In some cases, a copy of the spouse's document may be required.
2. Driver's license.
3. TIN certificate.
4. Employment book or contract.
5. Income statement.

The financial institution will offer the bank to fill out a questionnaire with detailed answers to questions of interest to the bank.

Every borrower should be aware that a used car loan or a new car loan has different requirements.

A new car is a means of transportation of the current or maximum of the last year of manufacture and completely without mileage.

In this case, there are no problems with obtaining a car loan. It is enough just to come to the salon, choose the right model, collect the documents and wait for a positive decision, after which you can get the car at your disposal.

The situation associated with the purchase of a used car is a little more complicated, since not every vehicle can be approved by the bank.

If you want to buy a used car, you may encounter conditions such as:

• car mileage at the time of loan application should not exceed 100 thousand km;
• the age of the car at the time of full repayment of the loan must be up to 8 years;
• if a foreign car is purchased, banks can ensure that the car is imported into Russia by an official dealer so that competent customs clearance is carried out.

There are relatively loyal financial institutions that allow the direct purchase of a car from a private person, but such banks are few and usually relatively young. All other more or less serious banks prefer to process transactions through legal entities.

Thus, if there is a desire to purchase a used car from a neighbor, you will have to get his consent to hand over the car to a special store.

The transaction due to this may take a little longer than buying a car from an accredited dealer.

To greatly simplify the process of collecting documents, filling out a questionnaire and filling out an application, the borrower can use the services of a manager accompanying the transaction. The specialist will help the borrower until the vehicle is purchased.

Another way to minimize risks is to contact not one particular bank, but several at once. From this point of view, it is much easier and more reliable to apply for the purchase of a car in the cabin.

Visiting banks on your own can take a huge amount of time and effort.

If you make a purchase of a vehicle on credit through a car dealership, you can submit offers to several banks at the same time with the help of employees of the organization.

Being on the spot, you can wait for a positive decision from one of the banks.

The only thing you have to spend time in a car dealership is choosing the vehicle itself, everything else will take a minimum amount of time.

Such time savings are based not only on the possibility of supporting the transaction, but also on the fact that some banks provide express lending services.

In this case, an application for the purchase of a vehicle on credit takes just a few minutes, but only if the package of collected documents is complete.

Conclusion

In the process of choosing a bank and a lending program, it should be taken into account that not all financial institutions put forward the requirements listed above for borrowers in full. Some banks exclude certain conditions, some, on the contrary, add.

In general, getting a car loan to buy a car is now no more difficult than getting a regular kitchen appliance.

If there is a constant income, registration and all the necessary papers and certificates are collected, you can be guaranteed to receive funds for such a desired and necessary purchase.

The cost of a car for many is an obstacle to buying it. To this end, salons offer car loans, according to which everyone has the opportunity to buy the desired car by dividing the total amount into several payments. The offer, of course, is tempting, but, as with any loan, you should familiarize yourself with the conditions.

Dealer and program selection

When deciding to buy a car on credit, you cannot:

• run to the first salon that offers installments;
• be guided by the words that are said on the billboard;
• do not succumb to the persuasion of the dealer, if you initially made a different decision (by providing you with a loan, the dealer has additional income for this);
• make a decision from the first salon.

There are a lot of dealers offering car loans today. Each of them has its own terms of purchase and payment, which you need to read carefully.

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When choosing a dealer, pay attention and be interested in the following questions:

• an initial fee;
• interest rate;
• the amount of a one-time payment;
• loan terms;
• the amount you pay for the car when the loan expires.

You can calculate the loan amount at any car dealership where there is lending, and then you can find offers from other salons or even individual banks that offer more favorable conditions. It takes time to analyze, so take your time.

If you ask in the salon which bank they cooperate with, find out what conditions the bank has if it gives a loan for a car itself without the participation of a manufacturer-dealer.

Below we provide a table with the conditions for a car loan of some banks

All these conditions differ depending on the lending program. When choosing a dealer and a program, show interest in who the real lender is - a bank or a manufacturer.

If this is a bank, then it will check your credit history first, therefore, if you had delays, then you may not receive confirmation of a car loan.

But manufacturers usually do not request such information, and the likelihood of obtaining a loan is much greater.

When signing the contract, even when you have already learned all the conditions and are sure of their profitability, carefully read all the clauses, everything should be stated clearly and without incomprehensible terms or points.

Video: Pitfalls

Decor

Of course, the choice starts with the car itself. Next, you decide which dealer will provide you with a loan and under what conditions.

After choosing a salon and a program under which you will buy a car, you will apply for a loan. According to the drawn up documents, you will pay the amount of the car.

Here it is important to ask what type of payment it is.:

• decreasing;
• annuity.

When drawing up a contract, it is also worth clarifying who will be the owner of the car at the time of loan repayment. Give preference to those salons that make you the owner for the duration of the loan, but at the same time issue a deposit (this is a guarantee for the salon regarding your loan).

Paperwork is usually carried out in the salon itself, even if the creditor is a bank. Then they submit a loan application to the branch with which they cooperate and receive a confirmation or denial of a loan. And you, respectively, funds for the desired brand of car.

A representative of the bank and a loan officer of the salon must participate in the registration. All questions of interest should be clarified with them before signing the loan agreement.

Standard conditions for a car loan at a car dealership

Making out any deputy, signing an agreement with a particular company, be sure to know the terms of a car loan at a car dealership.

The difference in the conditions for granting a loan for the purchase of a car in the majority will consist in the terms on which the salon entered into an agreement with the bank. They should be beneficial for both parties, which is achieved by interest on the loan.

If we compare obtaining a loan for a car directly at a bank branch, then there is usually a loan rate lower by 2 - 7% per annum. But it can be difficult to get approval at a bank because of a bad credit history, which may not be checked in the salon.

Most salons, providing the opportunity to purchase a car in installments, require the obligatory fulfillment of several conditions, which also increase the purchase amount. That is, when buying a car, you will pay not only the amount indicated on the price tag.

These conditions include:

• compulsory purchase of CASCO insurance (this is an additional 10% of the cost of the car, if you do not want to take out insurance, you can find another program, but it will have a high interest rate, so it will be more profitable and cheaper with insurance);
• obligatory maintenance and any repair work directly in the car purchase salon, which will be more expensive than in abstract places (if this condition is not observed, the salon has the right to terminate the contract and pick up the car).

When the salon obliges to insure the car when applying for a loan, it also indicates in which company the insurance should take place. Insurance is carried out against all risks, which also affects the cost of payment.

Documentation

You can’t just come to the salon and, having chosen the car you like, you can’t get a loan for it. Although you take a car loan in the salon itself without the participation of the bank (although your documents may be transferred there for verification), you still need to provide the documents to ensure the guarantee to the salon.

IN Salon for obtaining a car loan is worth coming with:

• passport of the person for whom the loan agreement will be drawn up;
• work book (a copy can be provided, it is needed so that the lender is sure that at the last place of work you have more than 6 months of experience);
• certificate of income (according to the law, the monthly payment on the loan should not exceed 40% of income);
• driver's license.

The list of documents can be adjusted by the salon, depending on which bank they work with, and what the bank will require from them in turn. When going to apply for a car loan, in order not to run several times, be sure to specify what documents you will need in the salon beforehand.

Having collected the entire list of documents, you can safely go to the salon for the car you like, but do not forget that before buying the entire package of documents will be checked by the bank or the salon itself.

In addition to the package of papers, you will write an application for a loan in the salon. It will become the basis for consideration of your application for money for the purchase.

Advantages and disadvantages

In any proposal there are always pros and cons. Deciding whether to buy for cash or on credit is based on the advantages and disadvantages of car loans. Of course, if you are not in a desperate situation, and there are not enough funds to buy for cash.

The benefits of car loans include:

• the opportunity to buy a car that you like, despite the lack of the entire amount;
• the speed of obtaining a loan (a car loan in the salon usually does not take more than 1 day, and sometimes only a few hours);
• there is no need to go to banks in search of favorable conditions, it is enough to sit down at the table of a loan officer in the salon and complete all the documents, they usually search for the most favorable conditions for their clients among the banks with which they cooperate);
• the purchase of a new car, which no one has yet been guaranteed to drive, from the manufacturer at any convenient time.

The disadvantages include:

• not the most favorable conditions for a loan, while if you go separately to the bank, you can learn a cheaper loan option;
• a limited circle of banks with which salons work;
• setting conditions by insurance and maintenance salons, which is not always beneficial for the buyer.

What to pay attention to

When signing any papers, they should be carefully re-read. Everything in the loan agreement should be clear to you. If you have any questions, immediately resolve them on the spot before you sign on the document.

When applying for a car loan in the salon, pay special attention to the following points:

• who will be the owner for the period of payment of funds (it is better if it is you, and the car is registered on bail);
• it is better that the contract does not contain a phrase about the possibility of seizing the car in a pre-trial order, this will mean that the salon will be able to pick up the car in case of disputes without going to court;
• the amount insured (by law, it must be less than the balance of the loan after making the down payment, although some companies require insurance for the full market value of the car);
• which party is the beneficiary of insurance (if it is a dealer, then in the event of insured events, the bank or dealer will receive all the funds on account of the loan, you will be left with nothing and with a broken car).

Hello everyone, Ilya Kulik is with you! If you want to take out a car loan, the conditions for getting it should be studied first. After all, it depends on them whether you can buy the selected car and how much you have to overpay for the loan.

Since there are a lot of banks, and there are even more loan products, in order to find the conditions that suit you, you will have to visit more than a dozen sites, spend a lot of time. But it is worth the time spent, because this way you can choose a program with the most optimal and even favorable conditions. Study, compare, and choose the best car loan!

Remember that while you choose a lender and study offers, the bank can change the conditions at any time at its discretion. The exact rules for using a loan for each case must be found out at the time of direct contact, after a preliminary study of the options and comparisons, and not vice versa.

It would be useful to double-check the data indicated on the bank's website through communication with the manager, call center specialists or online support.

According to the conditions (on which they give an auto loan, and on which they don’t), accurate information can only be found out from the contract, since it takes into account all individual nuances. Therefore, do not forget about the main rule of communication with banks - careful and complete reading of all papers before signing.

Also, do not forget that different financial institutions have their own characteristics and nuances regarding both the proposed options and the conditions for them.

Watch a video about the basic conditions for granting a loan for most banks:

General requirements for a car loan borrower

In addition to the conditions under which a person can receive a loan from a bank, a credit institution sets certain requirements for the client in order to be sure of the return of funds lent.

These requirements are approximately the same in all banks, so it makes no sense to write separately for each lender, although there are loan products with special conditions.

But even if the client is formally suitable, the probability of approval will directly depend on how close the client's data is to ideal in the concept of the bank. And also it is worth remembering that any bank has the right to refuse to approve a loan without giving a reason.

First of all, you should know that a car loan is usually provided only to citizens of the Russian Federation. Many creditors also require that the client has a permanent residence permit in the region where there are bank offices and even set a minimum period (4-6 months) of registration in one place.

However, some banks also have offers for foreigners, if they have a solid temporary registration status that does not arouse suspicion and a permanent official job. True, such a car loan is always high.

The main criterion for assessing the borrower by the lender

The most important criterion that gives the bank grounds for trust in the client and the issuance of a car loan to him is the financial situation.

It is assessed on two main aspects:

1. level.
2. Stability.

At the same time, the borrower does not have to have sources of income in the form of a “white” salary and housing in the form of a house or apartment.

Lenders take into account everything:

• Any regular payments such as a pension, for example.
• Business Income, bank deposits, rent, all kinds of significant one-time receipts (from the sale of something, for example), etc., etc.
• The presence of any valuable real estate, valuable movable property, securities, jewelry, works of art with a high value of intellectual and copyright, etc., etc.

Age of borrower

The main restriction applied to the borrower is age. The minimum age for obtaining a loan in most banks is 21 years. But somewhere you can get a car loan even from the age of 18, for example, in the Russian Agricultural Bank, and somewhere a loan to buy a car is not given to a person under 23 years old, as, for example, at the time of obtaining a loan.

The maximum age is usually set at 65 years old on the date of the last payment. But there are exceptions. For example, in Sovcombank you can repay a loan until the age of 85, in a bank up to 76 years, and in Alfa Bank there is no restriction.

Work experience

The next criterion by which borrowers are selected is work experience. Official employment is required, and the length of service at the current place of work should not be less than 3-4 months, and in some cases even six months (for example, in the Russian Agricultural Bank). Often, in addition to this, they require that the total work experience be at least a year. Requirements for payroll clients are usually softer.

Borrower's personal insurance

Many banks pay great attention to this criterion, since a significant component of the overall assessment of the riskiness of a loan depends on it. After all, banks can suffer losses if something happens to the borrower.

Although this criterion is not always critical when granting a loan, it is usually essential. And in the case of a loan for pensioners or for people near retirement age, life and health insurance is usually a prerequisite.

Required documents

The standard package of documents to be presented consists of:

• personal passport, you will need copies of all pages of the document, including blank ones.
• Driver's license(if you plan to transfer the car to another person, you will need his rights too).
• TIN and SNILS.
• work book or employment contract, copies of all completed pages are also needed, each of them must be certified by the signature and seal of the head.
• income statement, it can be submitted in the form of 2-NDFL or filled out according to the model of the bank itself.

The main document is a loan agreement, which is drawn up as a result of the entire client assessment procedure.

Important! Each creditor reserves the right to request additional documents if necessary.

"Floating" requirements

Of course, there are also requirements for the level of income, but restrictions are set based on the conditions and amount of the loan. It is also always important to have a good credit history, but again, the required level is determined by the bank according to the situation. And with payments on existing loans, you can’t get a car loan at all.

vehicle type

In banks, you can get a loan for the purchase of both a new and a used car. In the second case, the machine must meet the requirements of the financial institution.

The standard requirements for used vehicles are as follows:

• Mileage - no more than 1 thousand km.
• Date of issue- funds are issued for the purchase of a car, not older than 6-7 years, the maximum allowable age is 8 years.
• Legal customs clearance if the car was produced outside the country.

It is usually easier to get approval for a new vehicle, especially when it comes to a deal with the lender's partner dealers, which are usually car dealerships.

Credit vehicle insurance

A special condition of creditors is the insurance of the purchased transport, if it acts as a mortgage car. In this way, banks reduce the risk of payment problems and defaults. CASCO usually acts as insurance, but sometimes this policy is replaced by another one.

Such insurance is generally mandatory. Previously, without this condition, it was generally impossible to find a single acceptable proposal. Now there are many options for lending, but among them there are no particularly attractive programs.

Where is the best place to get a loan?

The conditions for providing loans for the purchase of vehicles are different everywhere, therefore, it is possible to determine where it is most profitable to take a car loan only if you have data on a specific situation.

Therefore, compare various loan products, evaluate their availability to you and the real overpayment, and choose the most suitable offer. Online calculators will help you with this, but remember that a really accurate calculation is carried out only at the bank when you apply.

Summing up

• Citizenship Russia or at least an effective temporary registration in the Russian Federation is a prerequisite for all creditors.
• Main criterion assessment of the borrower - the level and stability of his financial situation.
• Age of borrower– must be taken into account and may be critical when making a decision by the creditor.
• Work experience is usually taken into account, but this parameter may not be critical if the borrower has other income that is not a salary.
• Compulsory personal insurance required quite often, but not always. However, in any case, it significantly improves the terms of the loan.
• Motor insurance acting as collateral for a loan - in the vast majority of cases, a prerequisite.
• Characteristics credit transport also play a role and banks have their own allowable parameters for mileage, age and lack of legal problems. Often, the country of production and the degree of general deterioration are added here.

Conclusion

I hope that this review will greatly facilitate your task of choosing the best auto loan. Study the conditions, choose the most suitable for you personally, and take a loan to purchase the desired transport!

The comment form is always available for your feedback and questions, but please note that clarifying information on lending conditions should not be asked to me, but to bank employees.

A car loan is a loan that is aimed only at buying a vehicle. As part of this lending, you can purchase a car, bus, truck, motorcycle and any other vehicle.

A car loan has its own individual characteristics that distinguish it from other types of lending:

• car loan is intended only for individuals;
• a car loan is collateral, that is, you must, which will act as a guarantee of cash payments to the bank.

A car is the most common type of collateral in car loans, but in addition to it, real estate or valuables that are owned by the borrower can act as collateral. The collateral must have a high monetary value so that in case of ignoring payments, the bank can sell the collateral and close most of your debt.

Consumer and car loans - what's the difference?

Some people who first come across a loan do not always understand the difference between a consumer loan and a car loan. After all, each of them can be used to buy a car. But if you approach the issue of choosing a loan seriously and correctly, then it is first recommended to analyze in detail all the distinguishing points of these two types of loans.

A car loan is a targeted loan that is aimed only at the purchase of a vehicle. Consumer, in turn, does not have a strict focus on spending, you yourself can decide where to spend the money. Each of this type has its pros and cons, which you need to know for your own convenience.

Benefits of a consumer loan:

• freedom of spending. You can take out a loan, spend money on buying a car, and if there is a balance, then you can easily spend it on furniture, accessories, or anything else that you have long dreamed of;
• there are no strict restrictions concerning the car. You can choose a car of any brand;
• you can buy a car anywhere, be it a car dealership, a private person or a market;
• the possibility of early repayment of the loan;
• there is no need to register the purchased car as a deposit.

Advantages of car loans:

• it is possible to choose any lending program that suits you: express loan - the bank will make a decision on issuing a loan within 30 minutes;

• the loyalty of banks in case of late payment; in car loans, the bank goes to meet its customers if they notify it of the impossibility of payment within a certain period of time;
• car loan rates are approximately two times lower than in consumer loans;
• You don't need a guarantor to get a loan.

Disadvantages of a consumer loan compared to a car loan:

• there is no guarantee that you will receive the necessary amount of money to buy a car;
• high interest rates;
• A guarantor with a good financial history is required.

Disadvantages of a car loan:

• some banks set a mandatory condition - the presence of a valid CASCO policy;
• in case of early repayment of the loan, there may be additional fees;
• strict control in choosing a car (only a specific brand, model, etc.);
• initial deposit required. Of course, you can choose a loan "without a down payment", but then the amount of your debt will be increased;
• you need to register the purchased car as collateral for a loan.

But still, in order to understand which loan option suits you best, you need to know what requirements banks put on the borrower.

Requirements for a car loan borrower

For their safety, banks put a specific list of requirements that the borrower must meet. This list is standard and, if there are changes in it, then it is very minor, and this will depend on the chosen bank.

Income

A specific amount of the borrower's income on a car loan has not been established, but the higher the income, the greater the likelihood of obtaining a loan. Also, you must officially work for six months in one place. This period of time can vary from 3 months to one year of permanent work, depending on the banking organization. All this you must confirm with a copy of the work book certified by the employer, as well as a certificate of income.

Age Requirements

One of the most important requirements of the bank to the borrower is his age. In order to get a car loan, you must be over 20 years old and no more than 65. It is believed that before the age of 20 a person cannot bring in large incomes, and after 65 years a person retires, and its size is not enough to pay off the debt.

Credit history of a car loan borrower

Banks do not like customers who have had problems with banks in the past due to late payments. But it does not close the way for obtaining a new loan. If you confirm your good, stable and long-term financial situation, the bank will meet you halfway and agree to receive a loan. But your interest rate will be higher than if you had a good credit history. But there is a special program that is designed to help people who do not cope well or cope with their financial obligations. This program gives a chance to buy a car, the price of which will not exceed 750,000 rubles, only a domestic car or a foreign one, but assembled at our factories. If you really need money to buy a car, then you should take a closer look at this opportunity.

vehicle requirement

Since a car loan is a targeted loan, which is strictly aimed at purchasing a car, therefore, the bank will put forward requirements not only for the borrower, but also for the car being purchased. All the conditions of a car loan for a car are spelled out in the contract, and they must be studied in great detail. Most often, the bank sets specific requirements regarding the brand, model and technical characteristics of the car, the places where the vehicle was purchased and its age. As part of a car loan, you can purchase both a new car and a used one, and the terms of the loan depend on this.

New or used car - differences in car loan conditions

To buy a new car at a profitable price with a car loan, you need to be prepared for big expenses in the shortest possible time. So, to get a car loan for a new vehicle, you need to:

1. Pay the maximum down payment you can afford. It is desirable that it be in the region of 50% of the amount of the car.
2. Conclude a loan agreement for the shortest possible period for you, because this will ultimately allow you to pay out much less money. But under this condition, monthly payments will increase several times.
3. In order to be allowed to open such a car loan, you need to confirm your high and stable earnings with the help of a special income certificate.

If you cannot or do not want to buy a new car from a car dealership, then you can become the owner of a used car. But you need to be prepared for the fact that banks set more conditions for such vehicles:

1. If you purchase a domestically produced car, then it should not be older than 5 years.
2. If you purchase a foreign-made car, then it should not be older than 10 years.
3. There are restrictions on the mileage of the purchased car.
4. There is a mandatory down payment.

It is also possible to increase the interest rate on the purchase of a used car.

Each future car owner should assess his financial strength as objectively as possible, because buying a new car will allow you not to overpay the bank, but you need to have large amounts of money in a short time. For buying a used car, the conditions are more humane for many residents of the country, because they do not imply such large payments, but for long periods.

CASCO insurance

Some banks may put a mandatory condition for execution, without which they will refuse to pay out - this is the presence of a CASCO policy for the purchased car. This is designed to ensure that in the event of damage, theft or breakdown of the car, the borrower will receive an insurance payment, and it will protect the bank from the risk of non-payment.

Banks that provide car loans on favorable terms

On the territory of the Russian Federation there are many banks that offer their borrowers to issue a special loan, a car loan. But only a few can be included in the list of "best bank for car loans":

1. bank expert.
2. Bank Toyota.
3. SobinBank.
4. Gazprombank.
5. Sberbank.
6. VTB 24.

For the purchase of a used car, Gazprom banks, Sberbank and VTB 24 provide the best conditions for customers.

But before going to the bank, you need to check it for competence in this area:

• check the availability of a valid license, which will be a confirmation of the bank's right to carry out car loans;
• find out the size of the interest rate, and what its size will depend on;
• study the car loan agreement form in detail. This will allow you to find out more information about the terms of the loan;
• find out the loan repayment scheme;
• find out the amount of sanctions in relation to the borrower in case of delay in payment;
• find out the rating of the company by studying the reviews of its customers.

If, as a result of studying these points, you have a good impression of the organization, then you can trust it. If during the research process there was a lot that was unclear or unprofitable for you, then it is better to continue searching for the best company for you.

Who will be denied a car loan?

There is a long list of client traits that don't fit the "good payer" cliché. For example:

1. Lack of credit history. Due to its absence, the bank cannot know for sure whether you will pay consistently or if you will pay “somehow”.
2. Availability of outstanding loans. Due to several debts, the bank may consider that you are in a bad financial situation, and you are forced to take out loans in order to live.
3. Little wages. Due to the low salary, the bank may put forward a refusal under the pretext "you may not have enough money to pay off the debt."
4. The presence of several jobs that did not last longer than six months. The bank needs borrowers who are stable and have a low chance of being unemployed.
5. You have submitted false or forged documents. If you lied at the very beginning of the transaction, then there is a good chance that you are an unscrupulous payer.
6. You are under 21 years old. Too young people do not always have a large income, as they have only recently begun to live independently. And it is likely that they are not yet ready to take on credit obligations.
7. You have a criminal record, or you have committed minor offenses for which you have been punished accordingly. This will characterize you as an unreliable person, to whom it is dangerous to entrust a large amount of money.
8. Work for an individual entrepreneur. Banks sometimes refuse on the basis of this paragraph, based on the statistics of the liquidation of organizations. According to it, you can see that IPs are closed much more often than any other companies.
9. Your appearance. If you come to the bank in an unpleasant and unpresentable form, the bank will refuse you, as they “meet you according to your clothes”.
10. You have been denied a loan by several banks. If before that you were refused by several credit organizations, then this bank may think about the possible reasons for the refusal and also refuse.

Car loan without CASCO

If you do not want to overpay under the loan, you have the right to refuse to draw up a CASCO agreement. But only in those banks that do not insist on its conclusion. But the absence of CASCO increases the risks of the bank and therefore it tightens its conditions. For example, you may have an increased interest rate or a large down payment. If you are ready for such sanctions, then it is best to contact Tinkoff Bank, VTB 24 and Sovcombank.

Applying for a car loan at a car dealership and a bank

A car loan is a real way to buy a vehicle with a shortage of your own money. You can get a car loan at a bank or a car dealership.

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How are the conditions different from banks and car dealerships? How to get a loan directly in the salon, what documents will be required to complete the transaction, read on.

What is the difference between banking

For comparison, we present the advantages and disadvantages of car loans, which are issued directly at the car dealership.

So, the advantages include:

• time savings. If you apply for a loan at a bank, you will need to collect a certain package of documents, submit an application, wait for a decision from the bank, and agree on all conditions with the seller of the vehicle. Upon receipt of a refusal from the selected bank, the time to purchase a vehicle will increase, as it will require an appeal to another credit institution;

If you get a car loan at a car dealership, then just submit an application and wait for a decision. In addition, banks consider applications received within 3-5 working days, and a decision from a car dealership can be received within 1-3 hours, which leads to the possibility of obtaining a car loan and buying a car in one day.

• reduction of the list of documents required for registration;
• Possibility to apply to several banks at the same time. Since car dealerships cooperate with all the leading banks in the region, the application formed by the manager of the organization is sent to several banks at once;

At the same time, the borrower can independently choose the most optimal conditions for car loans according to the proposals received.

• when applying for a car loan in a car dealership, the company's employees assist in the preparation of all documents, both when concluding a loan agreement, and when concluding a purchase and sale agreement, a pledge agreement, as well as registration and insurance of a car;
• when applying for a car loan at a car dealership, the borrower's credit history is not taken into account, which allows you to expand the circle of potential buyers;
• the possibility of making a down payment with a car that is available (trade-in programs).

The main disadvantages of obtaining a loan for the purchase of a car in a car dealership are:

• application of an increased interest rate. In most cases, car dealerships do not lend to customers themselves, but provide only intermediary services between borrowers and banks, which are paid additionally. In addition, banks pay a certain amount to a car dealership for the location of a loan officer on the territory of the organization;

All of these factors affect the increase in the cost of a car loan through the application of an increased interest rate. On average, the interest rate is increased by 2 - 7 points.

• limited choice of banks. Although car dealerships cooperate with leading banks in a certain region, but not with all credit institutions. Some banks are able to offer customers more loyal car loan conditions than leading credit institutions;
• limited choice of insurance companies for the purchase of CASCO and OSAGO policies. Those companies that are directly represented in car dealerships offer policies at an inflated cost.

Basic conditions for a car loan in a car dealership

Car dealerships, as well as banks, can provide customers with various car loan programs.

The most popular programs are:

1. Standard program. The conditions are almost completely consistent with banking products, with the exception of the interest rate, which is higher on average by 2% - 7% per annum;
2. Trade - in. A feature of the program is the payment of the down payment by the car owned by the client. On the one hand, this program allows you to sell an obsolete vehicle in a short time, and on the other hand, the cost of the car will be less than when you sell it yourself. Main conditions of the program:
   • the amount of borrowed funds is calculated based on the difference in the cost of a new car and a used vehicle transferred to a car dealership;
   • cars of a certain age are accepted for offset (on average, domestic cars are not older than 12 years and foreign cars are not older than 17 years);
   • car loan term - no more than 36 months;
   • interest rate on an issued car loan - 17% - 22% per annum;
   • additionally: CASCO, maintenance in a car dealership.
3. Interest-free installment, that is, payment for the cost of the vehicle is made in several stages, and the car dealership does not charge a percentage fee for the provision of the service. When choosing a program, you should carefully study the basic conditions:
   • The cost of a car purchased in installments can be greatly inflated. In this way, car dealerships receive additional profit;
   • a fixed commission may be charged from each payment, which is comparable to the bank's interest;
   • the vehicle under the contract may belong to the car dealership until the full payment of the debt.
4. . Such a program allows you to purchase a car even in the absence of your own funds. However, it should be taken into account that:
   • when choosing a car loan without an initial payment, it is not possible to purchase a vehicle through an affiliate program developed jointly with the car manufacturer. Affiliate programs, as a rule, allow you to use funds issued at a low interest rate (on average 5% - 7% per annum);
   • the total cost of a car loan increases due to an increase in the interest rate (up to 20% - 25% per annum);
   • there is an obligation to purchase a CASCO insurance policy for the entire period of use of borrowed funds;
   • compulsory car deposit.
5. Express car loans. To draw up a loan agreement, only two documents are required: a civil passport and a driver's license. Express loans differ in the speed of processing. Under this program, you can become the owner of a new vehicle within 1-2 hours. Distinctive features:
   • mandatory down payment in the minimum amount of 10% of the cost of the selected vehicle;
   • average interest rate - 19% - 22% per annum;
   • loan term – from 1 to 5 years;
   • mandatory deposit;
   • mandatory CASCO;
   • conducting regular technical inspection of the vehicle in the showroom.

Thus, getting a car loan on favorable terms is more likely to happen in a bank than in any car dealership.

Requirements for clients

When issuing a car loan in a car dealership, the client must meet the minimum requirements:

• the presence of citizenship of the Russian Federation (if a legal entity applies for a car loan, then it must also be registered in the Russian Federation);
• minimum age is 21 (the company must have been operating for at least 1 year);
• the maximum age is not limited;
• the presence of a constant source of income (profitability of the company).

What documents to apply

The mandatory list of documents for a car loan for individuals includes:

• passport;
• driver's license.

To obtain a loan on more favorable terms, you will need:

• income statement;
• a copy of the work book.

A legal entity in a car dealership provides:

• registration certificate;
• power of attorney for the representative who will conclude the loan agreement;
• representative passport.

To confirm the profitability of the organization and receive funds on more loyal terms, the company's financial statements for the last reporting period will additionally be required.

Registration procedure

The procedure for applying for a car loan at a car dealership is practically the same as the standard procedure performed at a bank:

1. The client chooses a car dealership where the vehicle and the car of direct interest will be purchased. When choosing a car, it is recommended to determine not only the make and model, but also technical characteristics, as well as check the car for defects in performance and on the body.
2. The car dealership manager checks the possibility of acquiring the selected vehicle on credit and, if possible, offers various car loan programs.
3. After choosing a program, an application for a car loan is formed. The document indicates the personal information of the borrower and complete information about the selected car. Personal information is filled in based on the documents submitted by the client.
4. The generated application is sent to several banks for consideration (provided that the bank is the lender) or to a special department (if the car dealership is the lender).
5. The resulting decision, containing all the main terms of the forthcoming transaction, is communicated to the borrower, who has the right to accept or reject the offer.
6. If the borrower agrees with the proposed conditions, then a package of documents is drawn up, which includes:
   • loan agreement;
   • contract of sale;
   • reference - account;
   • receipt of payment of the down payment;
   • required insurances;
   • car pledge agreement;
   • payment schedule.
7. After registration of all the above documents, the vehicle is transferred to the use of the buyer (borrower).
8. The last stage of obtaining a car loan is registering the car with the traffic police and transferring the original title to the lender for storage during the period of using the borrowed funds.

Auto loans issued by car dealerships differ from standard banking products in two main qualities: speed of processing and an increased interest rate.