Documents for obtaining a car loan in the cabin. How to apply and what should I collect for a car loan? What documents are required
You can get a car in many ways, however, the simplest of them is a loan. The bank cannot issue a car loan without a specific set of documents.
Of course, there is the possibility of obtaining with only one passport and rights, but it requires a down payment of 20% of the cost.
So what documents are needed to apply for a car loan? The bank requires the borrower to have a passport as the main document. As secondary acts the usual package of documents:
- borrower profile;
- driver's license;
- original work book;
- income statement;
- copy of the contract with a car dealership;
- official employment for at least six months;
- vehicle passport (if one has already been selected).
Select from this list is a questionnaire. You will have to fill in it:
- personal information;
- education data;
- full information about work, position and salary;
- information on all property held by the creditor;
- data on marital status.
The list of documents provided may change due to the fact that some banks require additional documents. Their list is at the discretion of management.
It also depends on the bank how much the borrower will fit their individual requirements, which are not formally stipulated anywhere. The minimum age, for example, varies in the range from 18 to 23 years, despite the fact that mainly people from 24 years old take a car loan. If the borrower is married, the bank may require the consent of the spouse (it must be notarized).
Family income is required to be 70% more than the monthly loan amount. This is also due to the fact that the down payment, in the presence of all documents, is 20% of the cost of the car.
If you get a loan without a down payment, then the interest rate will be many times higher. There are also restrictions for cars for which he wants to take a loan. The vehicle should not be released before 1997. In car dealerships, such a restriction is completely absent.
Package of documents for car dealership
Despite the fact that the bank and the car dealership are working together, they have a different set of documents. Car dealership requires:
- application and application form;
- passport;
- driver's license.
The car dealership has no individual requests for other documents. However, before applying for a loan, it should be borne in mind that the interest rate at a car dealership is several times higher than at a bank. If the bank requires 10%, the car dealership will request all 20%.
Nevertheless, the car dealership, despite the high lending rate, is able to issue a loan upon presentation of only two documents. The main document is always one - this is a passport. The secondary is: a driver’s license, passport, military ID, official ID, certificate or declaration of income, military ID (in the absence of 27 years of age). Guide dealership itself decides which document to require. Such a loan is issued in the period from one to five years, implying an initial payment in the region of 20-30%. You can purchase both new and used foreign production.
Documents for a car loan for a used car
Making a loan for a used car is fundamentally no different. The bank requires the same package of documents as when applying for a new loan. However, it should be borne in mind that the liquidity of the object before receiving an application for it is not calculated. As a result, the bank will have to calculate the full cost of such a car, which will take some time.
If a legal entity requests a loan, the bank requires:
- confirmation of registration of a private enterprise;
- certified, not earlier than 3 months, a copy of the extract from the single register;
- certificate of tax service and income;
- documents and information about authorized persons.
However, if the company has been operating for less than a year, then the bank refuses the loan.
The Bank may also, at its discretion, require other supporting documents, such as patents or licenses.
If bad credit history
Banks refuse to those who have a bad credit history. In most cases, obtaining a loan with this status is impossible. The only way is to contact a microfinance organization or a credit union. However, this implies completely different conditions:
- interest rate higher than at the bank;
- less time is given for repayment;
- the amount received is limited.
It is worth considering that in organizations of this type debt restructuring is not provided. In case of default, the car is simply taken away.
You can increase your chances of getting a debt in a microfinance organization through collateral. The role of collateral can be: any real estate, jewelry and antiques. All that is offered as a guarantee is preliminarily tested independently to determine the true value.
Using a soft loan program
The use of state aid is envisaged in the Russian Federation. Its essence lies in the fact that lenders are given the opportunity to receive preferential conditions for car loans. They provide a loan rate of 7% below market.
The program can be used by: large families, public organizations or enterprises. It is worth noting that the provision of any documents is not required. The lender only needs to submit an application, indicating his desire to participate in state support for car loans.
Banks give preference to those who want to get a car exclusively domestic production. However, starting in 2017, the number of brands has increased and now includes: Renault, Skoda and Nissan. The list of banks that participate in this program is as follows:
- Sberbank
- Bank of Moscow;
- VTB 24;
- Rosbank.
Every year the list may increase or decrease. A package of documents for each bank is individual.
Decor
If the lender has decided on the bank and the type of car loan, then it is time to draw it up. First, you must carefully read all the clauses of the contract and, if possible, consult a lawyer for the correct interpretation of all unclear details of the contract.
The second is to pay attention to the commission for issuing a loan. Usually it is too high. The cost of opening a loan account, as well as the monthly amount for its maintenance, are also overstated. Sometimes banks put up a cost, the amount of which is 5% of the total loan amount. If the creditor is not able to pay such expenses, then the lawyer will warn him about this and advise him to find another bank.
The loan agreement says that the purchased car will be collateral itself. This implies that although it becomes the property of the lender, it also has the status of a pledge in the bank until payment of the entire loan amount. When buying a vehicle, a TCP will be issued only for a period of up to 10 days, after which it must be returned to the bank. This is done so that the creditor can register the vehicle. If TCP is not returned to the bank, then for each overdue day the bank writes a fine.
The contract also requires you to take out car insurance. He demands that this be done through the CASCO policy, which will also provide the bank with an additional guarantee if the vehicle is stolen or the creditor gets into an accident. The insurance amount is 10% of the total cost of the car, and it is necessary to draw up it for the entire term of the loan agreement.
Pay
When all agreements are signed and the loan is fully executed, the lender is given a payment schedule. According to this schedule, a certain amount must be paid into the loan account. There are also those banks that allow you to transfer funds sent by postal order to the account. However, this implies a commission.
Particular attention should also be paid to late payment. If the payment is made later than the date indicated in the schedule, the bank will charge penalty interest from the lender. Their size is usually determined by the contract, and their value is in the period from 0.5% to 4%. In special cases, this may be a fixed amount, also enshrined in the contract.
Early repayment is also impossible. Many banks prohibit doing this and in case of attempt to charge a fine. This is done because with the bank there is no profit from the loan. However, some banks still allow such a payment, but with one limitation - it is necessary that a certain period of time elapses after the loan is issued. Usually it is a year, however, it is necessary to specify this directly with the bank.
Pros and cons of car loans
When a decision is made, you need to consolidate it by analyzing all the advantages and disadvantages. The advantage of a car loan is:
- purchase a car as soon as possible in the presence of the minimum required amount;
- the opportunity to become a member of the state program and receive benefits, as well as free yourself from paying most of the interest on the loan;
- high duration of the loan period, which allows to reduce the amount of the monthly payment.
In contrast to the advantages, there are significant disadvantages:
- there is no full disposal of the car due to the fact that it is pledged to the bank until the loan is fully paid;
- one of the conditions is mandatory insurance under the CASCO program;
- down payment required.
Acquiring a car through - the method is certainly simple. However, in addition to this, it represents a responsibility for several years to come. To enter into such a deal with the bank is necessary only with full knowledge of all the nuances, as well as the advice of a competent lawyer. Otherwise, there is the possibility of a huge overpayment.
About the documents and the selection of used cars in the following video:
Jun 30, 2018 Help Help
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Before drawing up a banking agreement for the purchase of a vehicle, it is necessary to familiarize yourself with what documents are needed for a car loan. Each financial institution offers its customers a variety of lending options with standard and individual parameters.
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Car loans can be conditionally divided into loans that are issued in and banks. The process of obtaining a loan at a car dealership is much easier to obtain funds from a financial institution. This circumstance is caused by time savings due to the fact that when applying for a loan at a car dealership, the decision to allocate funds comes within a working day.
As for banks, the relevant applications and documents are considered during 3 days, and the entire process of execution of the contract may exceed 1 week.
Also in favor of car dealerships is the fact that such organizations simultaneously cooperate immediately with a number of banks, which enables the client to choose the most beneficial and optimal loan program for him.
Important: special attention should be paid to the total amount of the commission when issuing a loan - this can be a one-time payment or monthly payments. In a number of credit programs, this amount can be knowingly overstated.
The main provisions
Standard
Most banks offer borrowers a wide range of loan programs that differ in requirements, conditions, maximum amounts, annual rates and other parameters.
However, in this case, the list of documents provided is unchanged, the package of which includes:
- a special application in the banking form for the purchase of a vehicle and a completed application form from the borrower;
- identity document - most often a passport of a citizen of the Russian Federation;
- any other document, such as a driver’s license;
- copy of the workbook - it is important that the last entry in it is no later than for 6 months before taking a loan;
- income statement in the form of 2 personal income tax.
Quite often, financial organizations modify the established list of documentation and the extended version may include completely different certificates and certificates.
A full list of relevant documents can be found individually on the official websites of banks
Secured loan
Making a mortgage loan is a rather popular service that allows the borrower to borrow a fairly large amount on interest-bearing terms favorable to him.
When purchasing a vehicle under such loan programs, the following documents must be submitted to the bank:
- statement;
- russian passport and any other document proving the identity of the borrower;
- Title and state registration certificate;
- in special cases, it may require a power of attorney and an additional set of keys, if the borrower does not leave his vehicle as collateral.
As in other cases, banks may require a package of additional documents, so it is recommended that you familiarize yourself with the full list of required documentation from employees of a financial institution.
Instructions
Any person applying for a bank loan must confirm their financial viability. This also applies to guarantors.
To obtain such a car loan, you must provide the following documents:
- passport and any other document;
- a copy of the work book, which was previously certified by the employer;
- income statement;
- the form completed by the guarantor.
It should be noted that the list of documents for the guarantor and the borrower itself is almost identical. Regarding individual entrepreneurs, this procedure is somewhat complicated.
For entrepreneurs, in addition to the standard set of securities, you must submit a certificate of state registration of an individual entrepreneur and a document confirming registration with the tax authorities.
Among other things, banks may require financial statements for a certain period and information on the current balance on current accounts with other financial institutions.
Privileges
The state is developing more and more new programs when buying vehicles on credit. Such assistance is a certain kind of program in which part of the interest rate is paid from the federal budget. Normal, this indicator is about 5,5% of the total amount.
Currently, the list of cars that are subsidized includes 60 vehicles. Sberbank, Russian Agricultural Bank, VTB 24 and others provide preferential loans of this kind.
To purchase vehicles under the state subsidy program, the borrower must provide a standard set of documents. Which includes the passport of a citizen of the Russian Federation, a driver’s license and income certificates.
To obtain a loan, it is also necessary to provide a completed application in a bank form and, in some cases, leave property as a pledge
Differences between borrowers
Fiz. to persons
It will be easier for individuals to get a loan if it is already a bank's salary client. In this case, the buyer will not need to provide an income statement. In addition, some discount holders are provided with various discount programs in the framework of car loans.
The list of key documents includes the following papers:
- a special application for a loan in a banking form - this document is issued and filled out directly in the branches of financial organizations;
- passport of the Russian Federation;
- any second document that can act as an additional identity card of the borrower (passport, driver's license, etc.);
- a document confirming the existence of temporary registration, if any;
- for military personnel it is necessary to provide a military ID or registration certificate;
- income statement for the last six months in accordance with Form 2 of personal income tax;
- a copy of the work book or the corresponding contract, which were certified by the organization where the borrower is employed;
- contract of sale of a car;
- account for the purchase of a vehicle;
- insurance policy in triplicate;
- a document confirming the passage of the mandatory car insurance procedure;
- receipt confirming payment of the insurance premium;
- certificate of title;
Also, the bank can establish that you can take out a loan only after providing additional documentation:
- copy of documents on receipt of dividends and additional payments;
- confirmation of outstanding debt obligations;
- a brief description of the professional activity in which the borrower is engaged;
- copies of diplomas and other documents on education;
- information about the income of each family member.
Yur. to persons
Among the documents required by a financial institution may be the following:
- application filled out in a bank form - it can be found on the official websites of any bank;
- application form from the client and his guarantors;
- notarized copies of the passport of a citizen of the Russian Federation;
- certificate of status registered with the tax authorities;
- certificates of open accounts in Russian banks;
- credit history for the reporting calendar year;
- documents on the availability of existing loans.
It is worth noting that any bank has the full right to require a more complete list of documents and reports from the borrower. Information on the full list of required documents can be obtained on the website of the financial institution.
Dependence of documents for car loans on the place of issue
Salon
To apply for a loan at a car dealership, you must provide the following list of securities:
- statement of the borrower;
- profile;
- passport;
- driving license - in this case, it is worth noting that many salons do not require a minimum length of service for a loan.
Bank
The set of documentation for obtaining funds for a car in a bank includes:
- special application from the client;
- a passport with Russian registration in the area where the bank is located;
- driving license with a minimum experience of 1 year;
- notarized copy of the work book;
- income statement (employment experience must be at least 6 months);
- copy of the contract with the car dealership;
- original or photocopy of the title;
- any other paper at the discretion of the financial institution.
It is worth noting that financial institutions independently establish a minimum age threshold for lending. Mostly, car loans are taken by individuals from 22 to 50 years old.
Also, many banks require the notarized consent of the legal spouse to purchase a vehicle. In addition, the total amount of household income per month should be higher than the monthly loan payment by about 70% .
Before you immediately rush to choose a bank for a loan, first you need to find out what car loans are and what it contains.
In general, lending is divided into certain branches, and one of these branches is car loans. This type of loan is targeted, because it is issued only for a specific purpose: the purchase of a vehicle. But this is not the only thing you need to know before you go to choose a bank. For example, a prospective borrower should be aware of the following:
- The interest rate on car loans is much lower than in consumer loans.
- The loan term is much shorter, most often a loan is issued for up to 5 years.
- Car loan involves down payments (unless, of course, you choose a loan program that excludes the obligation to pay it).
- In the framework of car loans, the purchased vehicle is issued as collateral for the loan.
- The maximum amount issued for a car loan is much larger than the amount that is provided for a consumer loan.
- Car loan involves several special programs that can satisfy most of the needs of the population.
- You do not need a surety.
- Since your car is a guarantee of a loan, banks are more loyal to late payments.
A loan pledge is a material good that is in the official ownership of the borrower and has a monetary value. This benefit is made out as a pledge and in case of non-payment of monthly obligatory payments to the bank on the loan, the bank has the right to put up a pledge for sale in order to pay off your debt to it.
But in order to get a car loan in your name, you must meet the following requirements that banks attribute to borrowers:
- You are older than 21, but not older than 65.
- You have an official permanent place of work for six months.
- Your financial condition gives you the opportunity to pay the debt to the bank without serious damage to your financial situation.
- Credit history, if it is good, then you will be given a car loan on good terms. If your credit history is bad, then it is likely that the loan conditions will change you.
The future borrower has two options where to apply for a car loan: at the bank or at the car dealership. Each of this options has its advantages and disadvantages, so before choosing a company, you need to study each of the options in detail.
If you decide to contact the bank directly, then the first thing you need to do is to choose it correctly. To do this, you need to check the selected organizations for the following items:
- Availability of an appropriate license for car loans.
- Interest rate. If the rate is high, it means that in the end you will pay the bank much more than the loan amount.
- What conditions determines the size of the interest rate.
- What does a loan agreement contain? If this paper does not disclose all aspects of lending, but has only paragraphs about the amount, term and interest, then this contract is not suitable for you.
- The car loan agreement must include the terms of the loan. You need to study them and ask all the questions that you have.
- Also, the future borrower needs to know what penalties will be applied to him in case of late payment.
- Customer reviews of the financial company. If the reviews are mostly negative, then you should not choose this bank.
If after checking you have a positive impression of the bank, you should contact them and find out more detailed information that will be useful to you for applying for a car loan. For example, the presence or absence of bonuses when buying a car, from which the interest rate can decrease or increase, what documents need to be brought in addition and whether it is necessary, etc.
List of required documents
The specific list of documents depends directly on who takes a car loan: a legal entity, an individual entrepreneur, or an individual.
For a legal entity:
- constituent documents;
- registration documents;
- financial statements for the past few years;
For an individual entrepreneur:
- registration documents;
- financial statements;
- application for a car loan.
For an individual:
- copy of the passport of a citizen of the Russian Federation;
- a copy of the driver’s license (if several people drive the car, then you need copies of all driver’s licenses);
- copy of the work book. She will confirm the availability of official wages. Before you give a copy to the bank, your employer must certify it;
The procedure for obtaining a loan
It is also very important to know how to apply for a car loan, or rather, the entire procedure for obtaining a car loan. This process mainly takes place in 8 stages:
- Collect the necessary documents.
- Write a request for a car loan on the website of the selected organization in an online form.
- Submit necessary documents to the bank.
- Wait for the results of checking the submitted documents.
- Conclude a sales contract with the seller of the vehicle.
- Make a down payment, if required by your chosen loan program.
- Conclude a CASCO insurance contract or (and) a life insurance contract if required by the bank.
- Conclude the necessary agreements with the selected bank (arrange a car as collateral and conclude a loan agreement).
Approval of Application
What does each borrower strive for when applying for a loan? It is for the approval of this very application. Moreover, approval depends on the following factors:
- Good credit history.
- The future borrower has confirmed high and official earnings.
- The borrower has been working in one place for a long time.
Basically, these 3 points are looked at by bank employees when deciding on a car loan. Of course, if you have a bad credit history or you don’t have a lot of money, or you have been working in the last place for not so long, then you can also get approval of the application, but the conditions of your loan may change a little. How exactly they will change depends on the bank you have chosen.
Features of a car loan in a bank
Car loans in the bank has its own distinctive features, for example:
- You will have to pay a commission for opening your account.
- Monthly payments include the percentage for maintaining this account.
- The presence of various lending programs.
- Possible to participate in various sweepstakes, bonus programs, etc.
- The presence of additional credit conditions - insurance contract.
- Registration of the acquired.
- The future borrower must be over 21 years old.
- Interest rates are slightly lower.
- The presence of additional fees in case of early repayment of the loan.
- A loan is most often issued for 5 years.
- Since the car is a guarantee, the original TCP is stored in the bank itself.
Credit through a car dealership
Another option, to take a car on credit is a car loan at a car dealership. But you need to remember that the car dealership in this case will not act as a credit institution, it is only an intermediary between the borrower and the bank.
In principle, a car loan at a car dealership does not differ much from a bank loan, but, nevertheless, the first option has its own peculiarities and nuances. In order to take a car loan at a car dealership, you will need to show the necessary documents to the salon and apply.
What documents will be required?
The list of required documents is similar to the documents that need to be submitted to the bank.
- copy of the passport of a citizen of the Russian Federation;
- a copy of the driver’s license (if several people drive the car, then you need copies of all driver’s licenses);
- copy of the work book. She will confirm the availability of official wages. Before you give a copy to the bank, your employer must certify it;
- income statement (if required by the program you have chosen);
- copy of the passport of the citizen of the Russian Federation of the spouse or spouse (if any);
- application for a car loan.
The procedure for obtaining a loan
The only thing that can be changed when choosing a car dealership instead of a bank is the procedure for registering a car loan. If you decide to take a loan at a car dealership, you will need to follow these steps:
- Collect the required papers.
- Choose a car dealership and a specific model of future property.
- Apply for a car loan.
- Wait for the application to be considered and a decision made.
- To issue an insurance contract (if required).
- Conclude a sales contract with a car dealership.
- Make a down payment.
Approval of Application
Even if the borrower draws up a car loan at a car dealership, he is also interested in obtaining approval of his application. In order to get a positive answer, the borrower must give the impression of a reliable person, for this it is necessary:
- Confirm the official salary, which should be of the appropriate size, taking into account the repayment of the debt and the maintenance of the family.
- Work officially in one place for a while (usually from six months).
- Have a good credit history.
Features of a loan at a car dealership
As mentioned above, car loan registration at a car dealership has its own individual nuances, which can be called features. For example, if a borrower draws up a loan from a car dealership, then:
- The term for consideration of an application by a car dealership is much shorter (if you do not use the express loan program).
- In car dealerships, the requirements for borrowers are more loyal.
- The interest rate on the loan is greater than that of the bank (this is due to the fact that the car dealership is only an intermediary between the bank and the borrowers, so it is important for the car dealership to get a share of the profit). On average per year, borrowers at car dealerships overpay about 20-40%.
- The choice of banking organizations is less, since you can choose only those banks with which the car dealership works.
- The maximum amount disbursed directly depends on your financial situation.
- Car dealerships issue loans on average for 3 years.
- A car dealership can issue a loan to a person from 18 to 35 years old.
- Convenience of obtaining a loan and buying a car.
- The opportunity to get discounts and bonuses from a car dealership.
- If you want to put additional equipment in your car, then its cost can be included in the loan amount.
Credit for a new car
If you plan to buy a new vehicle using car loans, then you need to know the following: to buy a new car profitably, you need to conclude an agreement as soon as possible and immediately make about 50% of the debt as a contribution.
In our country, there is the possibility of obtaining benefits for the purchase of vehicles. About the conditions and rules for its receipt, read on our website.
Used car loan
Details can be found on our website.
If you do not need a new car, and you want to buy a used car, then you need to know that the following conditions apply to such vehicles:
- domestic supported car should not be older than 5 years;
- there are restrictions on the size of the car’s mileage;
- a foreign car must not be older than 10 years.
Also, when buying a used car on credit, the borrower cannot refuse to pay the down payment.
How to get a loan with bad credit history?
If you are a borrower with a bad credit history, then you should know that the loan conditions for you are likely to change, for example:
- you cannot refuse to pay the down payment;
- interest rate will be higher;
- loan term can be reduced or increased.
If you are denied a loan at a bank, then you should contact dealerships or pawnshops.
The acquisition of a new car in the 21st century is no longer a dream, but rather a necessity. If earlier a car was considered a luxury for many, then now it is already a means of transportation. In addition, in our time it is not necessary for many years to save money for the purchase of a new vehicle, since there are banks and other financial institutions in which it is possible.
Auto loan: the pros and cons
A car loan is the amount of money that a borrower takes from a bank at interest to buy a car. Making a car loan is difficult only for young people and retirees. The main reason for this lies in the fact that banks are only interested in those borrowers who are able to work and have enough cash to pay off the debt. Although no one bothers a student or senior citizen to get a loan, the conditions will not be the best.
Now there are many banking and other financial institutions on the market, each of which has a variety of credit programs. But before contacting such institutions, it is worthwhile to find out whether it is profitable to get a loan or can save up for a new car on your own?
As for the advantages of obtaining a loan for a car, the following can be noted:
- The ability to buy a car in the shortest possible time. You can buy a car even with minimal savings. The main thing is that they are enough to pay the down payment and other commissions. The larger the amount paid as a down payment, the more beneficial the loan will be for the borrower. It is also important that the borrower's current income is sufficient to repay the debt.
- Car loans on preferential terms. The state has developed a special program with the help of which it stimulates the purchase of cars manufactured in the territory of the Russian Federation. Part of the loan for such a car is repaid by the state.
- Pay period selection. Banking institutions can issue car loans for a period of 1 to 5 years. If you choose a long term (for example, 5 years), then the monthly payment will be insignificant. But it is important to remember that the longer the loan is valid, the greater will be its total cost. Therefore, it is necessary to choose the optimal period so that the monthly payment is affordable and the total loan amount is not too large.
The disadvantages of a car loan include the following:
- Strict requirements. Typically, banks do not give loans to youth, retirees, borrowers with bad credit history, unemployed people and those who work in a new place for less than 3 months. Although such people can still get a loan, for every little thing (lack of a steady income, bad credit history), banking institutions will be safe, increasing the interest rate, etc.
- Auto pledged. When applying for a car loan, the pledged vehicle is the purchased vehicle. And until the borrower pays all the debt, the documents for the car will be stored in the bank.
- Insurance. When applying for a loan, you also often have to pay for insurance, which increases expenses by about 10%. It is possible to refuse this service, but then it will affect the total cost of the loan.
- Down payment. When buying a car on credit, it is advisable to pay in the amount of 10-30% of the total cost of the vehicle. The absence of a down payment will also negatively affect credit conditions.
Based on the above advantages and disadvantages, it can be noted that a car loan is a good option for acquiring a car only if the borrower has the necessary amount for a down payment and a steady income. Otherwise, banks will establish not very favorable conditions for the borrower.
Requirements for the borrower for a car loan
Different banking institutions may have slightly different borrower requirements, but there are still prerequisites.
Among these may be noted:
- the borrower must be at least 21-22 years old and not older than 55 (for women) and 60 years (for men);
- compulsory citizenship of the Russian Federation;
- availability of permanent registration;
- work experience of at least 3-6 months (at the last place of work);
- total experience - 1-3 years;
- the presence of a steady income.
In addition, it should be borne in mind that the list of these conditions in some financial institutions may be different. Sometimes some conditions are excluded, and sometimes they are added. For example, a credit institution may require that the borrower work in the same region where the bank is located. Another possible condition is a good credit history. Moreover, its complete absence is not considered a good credit history.
As for paperwork, the following list of documents should be prepared for car loans:
- application form, which indicates all the necessary information (it is usually provided in banks);
- copy of the passport;
- copy of driver’s license, military ID or passport (one of the documents to choose from);
- a copy of the work book (work experience in the last place should be 6 or more months);
- help 2-PIT (issued by the employer).
In addition, depending on the situation, the bank may request other documents: a copy of the education certificate, marriage certificate, permission of the spouse (or spouse) to borrow money, TIN, pension certificate, etc.
Types of car loans: which is better to take?
There are several types of car loans that a borrower can apply for:
- no down payment;
- for used cars;
- with state support;
- leasing.
The first type of loan (without down payment) is suitable for those borrowers who do not have enough money to pay the first payment. Moreover, they should have a constant source of income. The monthly payment on such a loan is about 30-40% of the borrower's income. For example, if you need to borrow 500 thousand rubles for a period of 3 years, you will have to pay 15 thousand rubles a month. It turns out that the borrower's salary should be 40-45 thousand rubles or more (but not less).
Naturally, such a loan has its drawbacks. Banks are always insured if the borrower does not fulfill some condition. In this case, this is the absence of a down payment. Therefore, the interest rate will be slightly higher than in normal situations. In addition, participants in the preferential car loan program will not be able to take such a car loan, because one of the prerequisites of this program is to make a down payment of at least 10% of the total cost of the vehicle. Finally, there is no way to do without initial fees here. A pretty substantial amount will still have to be paid for car insurance. Sometimes you can agree not to pay insurance, but this will affect the interest rate.
The next type of loan is for used cars. Since a car loan for a used car carries certain risks, the interest rates for such offers will be slightly higher than for similar offers for new cars. As a rule, the interest rate of a loan for used cars can range from 14 to 20%, although the exact figure depends on the total amount, down payment and duration of the service. The first installment can be both zero and about 20-30% of the cost of the vehicle. Naturally, with a “zero” down payment, the interest rate will be higher.
Credits for used cars are issued for a period of 1 to 3 years. Although you can get a loan for 5-7 years. But this will again affect the lending interest rate. The minimum loan amount for a used car is 50 thousand rubles, the maximum - 500 thousand rubles. An application for a loan is considered within a few days (it is necessary to indicate the brand of the purchased machine and the seller’s data in it).
But such a car loan has its own limitations. As a rule, banking institutions prefer to issue loans for cars only if they are purchased at a car dealership. Few financial institutions are ready to provide a loan to buy a car from the hands of an individual, since such a car can, for example, be registered in theft. In addition, banks have stringent requirements for the purchased car, especially domestic production.
So, the age of a domestic-made vehicle should be no more than 5 years, and foreign cars - no more than 7 years. Otherwise, the bank may simply refuse to issue a car loan. The number of previous owners is also important for the banker: if there are more than 3 of them, he is unlikely to like it. Therefore, to take, you have to choose it very carefully so that the car fits the maximum possible number of requirements. Both the cost and the loan term will depend on the selected car.
State support loan
A preferential car loan can be obtained by purchasing domestic or foreign cars that were collected on the territory of the Russian Federation. The government subsidy program is aimed at restoring consumer demand and consists in the fact that the state helps borrowers repay part of the loan (compensation - 5.3%). Given that the average rate on car loans is from 12 to 18%, then with compensation will remain to pay only 8-13%.
Under this program, you can purchase any of the 50 cars that are on the list of the Ministry of Industry and Trade. The list includes cars of the brand Chevrolet, Fiat, LADA, Skoda, GAZ, Hyundai, etc. In addition, there are certain conditions:
- the maximum price of cars is set at 750 thousand rubles;
- the down payment must be at least 15% of the total car amount;
- loan term should be no more than 3 years;
- the loan is issued only in rubles.
Car leasing - an alternative to credit
Car leasing is a long-term lease of a car with the right to purchase. This service is provided by leasing companies and banks.
To use the leasing, the borrower must provide a passport, driver’s license and pay an initial payment of 20-45% of the total cost of the vehicle. You can, of course, find an option without a down payment, but in this case the package of necessary documents will become wider (i.e., approximately the same as when applying for a car loan).
You can lease a car for a period of 1-5 years. The car is purchased by the company, and until the expiration of the service, the lessor will be considered the owner of the vehicle. The borrower will simply receive the car for use on the basis of a power of attorney. A prerequisite for the borrower is the purchase of a CASCO insurance policy. A vehicle inspection and its registration in the traffic police are already the concerns of the leasing company.
After the car rental term has expired, the borrower has two options: pay the rest of the money for the car and pick it up for yourself, or return the vehicle to the leasing company. In addition, there is still the opportunity to extend the contract or issue a new one to another car.
Car leasing can be of 2 types:
- the monthly payment is calculated so that at the end of the lease the full cost of the vehicle is paid and the car becomes the property of the borrower;
- payments are made in installments, and the missing amount can be paid at the end of the contract (if the borrower does not want to buy the car, then it remains with the lessor).
The most important advantage of car leasing is that it can be used by those who have been refused a loan. In addition, when making a lease, neither sureties nor collateral are usually required.