In conditions of big cities caris rather not a luxury, but a necessity. Today, almost every third resident of the Russian Federation has its own vehicle. However, not everyone can buy a car, and most often people resort to obtaining a car loan.
Сегодня существует огромное количество all kinds of programs for which you can get a loan. Car dealers themselves offer to borrow money. Is it profitable to take a car loan? Are the reviews positive or negative? Consider the opinion of experienced car owners regarding this issue, as well as possible pitfalls that people may encounter.
Features of car loans
Speaking about whether a car loan is profitable, firstall need to understand that loyal financial institutions do not exist. Both banks and car dealerships themselves, offering to take a loan from them, pursue one single goal - making a profit. It must be understood that the credit institution is not a relative from whom it is possible to intercept money before paycheck. In any case, a certain interest will have to be paid for using the funds.
Nevertheless, this procedure is very profitable, because a person can receive a fairly large amount of one-time payment, while it will take many years to save up for a car on his own.
However, before you make a contract, you mustapproach the issue with a clear head. You need to understand whether a car loan is profitable. Feedback from other borrowers in this matter will be very helpful. Experienced car owners recommend to pay attention to the maximum loan amount, interest rate and the amount of the down payment.
Also, additional commissions and feesterm which is given to repay the loan. It should be understood that when working with any financial structure there is a risk of overpaying too much. Most often, these figures no one hides. The problem is that potential car owners themselves do not want to spend time studying the contract they sign up in detail.
First of all, it should be understood that the mainThe key to obtaining a car loan is the car on which the money is spent. If during this time something happens to him, then this can result in quite large costs. You also need to understand that until the full repayment of such a loan your car cannot be sold in any case. The same goes for gifts or exchanges.
Among other things, speaking about whethercar loan, it is worth considering that a new car should be insured. This is a prerequisite for obtaining a loan. On this basis, more and more unnecessary expenses appear. Therefore, it is worthwhile to consider in more detail the terms of lending, or rather those moments that look quite different than it seems to be the employees of credit organizations themselves.
Increase insurance premiums
If a person takes a bank loan, then howas a rule, he is recommended to insure himself in certain companies, which, in essence, are partners of a financial institution. In this case, the bank receives its commission for each directional customer. But a person who wants to borrow money, on the contrary, has to pay quite a lot.
When it comes to acquiring a newof a motor vehicle, then a car dealership may require a client to insure a car immediately for the entire loan repayment period. This will result in a pretty decent amount of money. However, you need to take into account one important nuance. No institution has the right to force its customers to bring insurance policies. If a person does not wish to perform this procedure, then he has the legal right to refuse it. In this case, the lender can only raise the interest rate on the loan, which again questions whether the auto loan is profitable.
Imposing life insurance
In addition to the insurance of the motor transport itselffunds, dealership employees may require to bring a policy confirming that the borrower is insured in case of death or disability. Such certificates are also expensive.
As in the first case, the client is not obliged to fulfill these requirements.
Without hull insurance
This slogan is very common in draftstatements of many car dealerships. Indeed, some banks today can provide loans without the need to issue a CASCO certificate. However, do not flatter yourself about this. The fact is that in this case, no one really will force you to bring insurance. Lenders will simply increase the interest rate, and in the end the amount will not change. Is the car loan profitable for such conditions? No, but at the same time the borrower loses nothing. He will simply pay the same amount, assuming he won on overpayment.
Are there low interest rates?
Many are interested in whether a car loan is profitable with a residual payment, subject to a lower overpayment.
This is another trick that often gocar dealers and banks. The purpose of this psychological course is to convince a person that the interest rate is reduced to such a minimum that in fact a person will not overpay almost anything. Is it really?
You need to understand that there is a common credita bet that rarely changes. These figures are only relative, and no one assures the client that they will indeed be indicated in the contract.
Even if the contract states thatthe overpayment will be 2% per annum, then just below, upon a detailed review of the document, you can find a small print, which contains a list of additional fees, which will very quickly cover the reduced annual percentage. As a result, the client will still produce a rather impressive overpayment. It is necessary to understand that it is unprofitable for the bank to give money for a long time practically free of charge, no one will ever deal with this.
Interest-free loans
Moving on to the next submerged stone, whichsounds even more absurd. Such loans, which indicate that the overpayment will be zero at all, are worth a few miles to get around. The fact is that such attractive slogans often hide the most unattractive contract terms.
Even if the company is bona fide,you need to understand that in this case, most likely, you will have to pay 50% of the cost of the car as a down payment. Also, most often the crediting period should be no more than 1 year. If the payment term, on the contrary, is many years, then there may be another trick. The fact is that many, arguing whether it is profitable to extinguish an auto loan early, decide to pay the balance immediately. However, according to some treaties, it is forbidden to do so.
Also, have to insurethe vehicle is in the place where the representative of the bank indicates. In any case, an interest-free loan will be beneficial only to the organization that provides cash loans. A potential car owner can never win anything on this. Even if the down payment is 0% of the cost of the vehicle, then most likely it will mean that the subsequent interest rate is increased.
What to look for when buying a car on credit
In order not to fall into the financial pit, first of allnot recommended to rush. The contract needs to be studied in detail. It is advisable to show it to an outside lawyer. If an employee of a car dealership or a bank insistently says that this is a standard contract, then it is worth considering whether or not the loan provided will not be a hoax.
Signing an agreement is not recommended immediately.case If a person is not familiar with jurisprudence and does not know the laws, then it is best to take a contract with you home and familiarize yourself with it in detail. Most attention is recommended to pay the figures specified in the contract, especially those that are written in small print.
Does it make sense to take a loan for a car in a bank?
Выгоден ли автокредит?Or is a consumer loan in a bank better? You need to understand that loans in the showroom - by and large the same thing, if the design was all at the same bank. Only in this case, auto show plays the role of intermediary. It is not difficult to guess that when carrying out such a procedure a large percentage will be charged to a person, because the car dealership also needs to receive certain benefits. It is much easier to contact the bank directly.
Is refinancing car loan profitable?
It’s usually difficult to answer this questionHowever, when it comes to buying a car, then such lending is indeed a fairly profitable solution. However, it all depends on the conditions of a particular credit institution. If after making a deal, the loan conditions will be the same, it will be to some extent more convenient for the potential car owner.
Однако пытаться оптимизировать свои расходы или reduce the total amount is not worth it. In any case, this will not work. You need to understand that refinancing is exactly the same target loan, which is simply taken in order to repay an existing loan. Accordingly, the amount by and large will not change. It is much easier to immediately take money from the bank in order to purchase a PBX.
Is it profitable to take a car loan in the showroom? In terms of costs, there is no difference. However, when you make a loan in the bank there is a chance to get benefits.
