Every day people who are going to buy a car are tormented by the question, which loan is more profitable - a car loan or, after all, a consumer loan? But, before answering, one should ask the future owner - how is he going to insure his future purchase? CASCO, or does he prefer a car insurance? And if it is CASCO, then the answer is clear - a car loan is more profitable!
Their fundamental difference is that a car loan has a lower loan rate, because the purchased car itself serves as a pledge for the return of funds borrowed from the bank and the risks for the bank in this case are less.
A consumer loan is issued without collateral, and the bank itself bears the entire risk of non-repayment; it has to compensate for them by raising interest rates.
It should be borne in mind that car insurance is not just a whim of a bank, but a systemic means of protecting your purchase from damage, theft, and unforeseen repair costs. A car is, after all, a means of increased danger.
But some people prefer express loans instead of classic car loan programs. This is a perfectly acceptable way if the amount that you do not have enough to buy is not very large and you need it urgently. In this case, you just need to contact, say, the office of the company " Excellent cash " and the problem will be closed. The main advantage of express loans is that they do not require a large package of documents, confirmation of the borrower's income level. In contrast, conventional, classic types of lending involve a thorough verification of the identity of the borrower. They check the level of income, demand to make a copy of the work book, even check the client's criminal record. And if a criminal record appears in the biography, then the hope of getting a car loan will have to say goodbye.
There are many myths about car loans:
- Banks have stopped issuing car loans altogether .
It should be noted that the car loan market has undergone some significant changes in recent years. The country recovered from the crisis, and people again began to actively make purchases on credit. Moreover, financial structures have reduced the first installment, and the interest on the loan has become lower. But, nevertheless, there are some age restrictions, and you still need to confirm the source and level of income.
- The high cost of loans began to go off scale.
Sberbank, for example, keeps the rate on this type of lending at about 13% per annum. Thus, if you receive a “white” salary, then Sberbank is perhaps the most profitable option. True, the consideration of the application by Sberbank is delayed - up to one week.
Credit conditions at VTB24 are also quite good. It also has a relatively low lending rate, moreover, the income statement is provided in the form of a bank - this is already a competitive advantage that another participant in this market has to reckon with.
- Banks almost always refuse to issue a loan.
This is indeed the case sometimes, but most often through the fault of the borrower himself. And the reason for this is the inattention, as well as the lack of punctuality of the borrower. Therefore, before applying for a loan, study loan programs, contact the loan manager of a financial institution, and do not try to fill out all the necessary papers yourself without having experience with financial documents.
But if you do not have a very small amount to make this cherished purchase, and the purchase cannot be postponed, then you can borrow money from reliable friends, or from specialized financial companies.
