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What you need to know about car loans?

by sellrentcars

According to statistics, today every third new car on the Russian market is purchased on credit. Millions of people want to buy a new car and, accordingly, due to such an increased demand for supply, banks regularly develop new and new loan programs with more favorable conditions. What you need to know about car loans?

Let’s start with the fact that all car loans can be classified into two types: classic and express loans. If you want to get a classic loan, then the following is necessary for the borrower: collect the entire package of necessary documents, submit a certificate of income to the bank and make an initial payment. As a rule, classic loans are issued for a period of up to 5 years, and they are repaid in equal installments throughout the entire period.

As for the express loan, here the application is usually considered quite quickly, somewhere within 2-3 hours. Such loans are issued for a period of not more than 3 years, and the interest rate is slightly higher than the classic car loan.

Today, almost all banks have a car loan program. Very often they conclude special agreements directly with car dealerships, which is even more profitable.

Car loan is a loan on the security of the acquired property. The client receives an invoice for the purchase of a new car in the cabin, and the bank, in turn, transfers funds to the seller’s company account. And from this moment the car is transferred to the client, although at the same time it becomes a pledge property. This means that this car is subject to mandatory insurance from all kinds of risks. In the event that the client is non -payment under the car loan program, the bank has the right to return all funds by selling collateral property. And until the full repayment of the loan, the passport for the car will be with the bank.

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