Car loans without interest – the temptation for many motorists, especially beginners. Today, many car dealerships with the support of various banking institutions provide the most favorable conditions, providing an opportunity for customers to purchase vehicles with minimal initial costs. And most often such offers are relevant not only for imported cars, but also for domestic models. What lies behind the “interest-free” loans? What conditions actually provide banks? How profitable to take a car loan at 0 percent? Answer each of the questions.
To answer this question, you need to understand the traditional credit systems. And they offer paperwork for a period of 5-7 years, for which the borrower often has to overpay up to 100% of the original amount, and sometimes more. If you take a preferential car loan, designed, for example, for 2 years, the appreciation will be much less – 10%, but this will require a large amount to be paid initially – from 50%.
Therefore, many customers of car dealerships, having at least 2/3 of the cost of a car, try to either wait, collect the full amount, or borrow from friends, without being drawn into credit obligations.
Of course, if a car dealer offers a good price, the necessary equipment and an interest-free loan from a bank for a short period, then you should take advantage of such conditions. Costs will be minimal.
Car loan without interest in the showroom – a tempting scheme, which has its own nuances. If we consider such conditions from the point of view of legislation, there can be no credit for a car absolutely without interest, which is indicated even in the Civil Code. In this case, the lowest interest rate is used, for example, 0.0001% per annum.
In an effort to buy a car on credit, it is necessary to take into account insurance. This is an additional item of expenditure, which will require about 6% of the amount per year. If a loan is supposed to be processed without interest, as a rule, banks are forced to pay a one-time fee, which is about 5%. Also an additional requirement may be the need for life insurance of the borrower.
A car loan without interest is a profitable purchase, but you need to take into account another nuance. Any banking institution when issuing loans takes into account the price of deposits in the market. If the client is promised 0.0001% per annum with an initial contribution of 10%, in fact, it may turn out differently.
Very often, banks prescribe in the contract in small print an additional condition – for example, the size of the monthly commission, which is 1%. As a result, the real interest rate will not be 0.0001%, but all 20% or more. In addition, such commissions are often attached to the body of the loan, rather than the balance, so the amount does not decrease even at the end of the term.
And banks are not shy about raising penalties for such loans. And any delay in payments promises the borrower a serious increase in the size of the required contribution. Banks do not miss their benefits. And even if they promise really favorable conditions for the borrower, they earn on other schemes.
For example, in cooperation with insurance companies that benefit from the sale of Casco policies, which means that they are ready to share with banking institutions to increase their turnover. In addition, car dealers often offer banks additional discounts on cars, which further increases the profitability of lending.
For car registration on the terms of interest-free lending, the bank, as a rule, requires that the following conditions be met:
The minimum package of documents that will have to provide the borrower:
For a positive decision on the application, the income should be high and stable, taking into account the experience on the last workplace and other nuances.
First you need to find out from the bank employee how the monthly commission is charged: on the loan amount or on its balance. It is best to ask for an example of a contract by which you can navigate in the calculations.
If the fee is determined depending on the loan amount, the calculation will be simplified. Advance is transferred from the percentage in the money format, taking into account the cost of the selected machine model. The resulting difference between price and down payment is the loan body. And then you need to take into account all the interest on car loans, which will charge the bank.
Let’s give an example. A vehicle costs 1 million rubles, an advance payment is 10%, then we get a loan body – 900 thousand rubles. If the monthly commission is 0.9%, the amount of regular payments is 8.1 thousand rubles.
The body of the loan must be divided by the number of months of the loan in order to receive the size of the contributions. For example, the loan period is 24 months, then each month you will have to repay the loan body in the amount of 37.5 thousand rubles. To this amount we add the monthly commission and receive a monthly payment of 45.6 thousand rubles. This will also have to add the cost of insurance.
If you decide to buy a car on credit with a minimum annual interest rate, then you should consider the proposed conditions from different banks, and also consider some aspects:
It is necessary to remember if the borrower fails to make a mandatory payment, he needs to inform the bank about this, preferably in writing and indicating good reasons, as well as providing supporting documents.
If you decide to purchase a car at a car dealership, you should prepare for a possible change in the terms of the loan in the loan registration process. And in fact, it may be that the sale of the vehicle will be performed with a certain annual percentage. Credit in this case is a tool to attract customers and increase profits. As a rule, zero loans are issued in harsh conditions, under which the possibility of choosing an insurance company, picking up cars, etc. is limited. Therefore, the final decision on how to choose a purchase scheme remains for the future car owner.
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