How to get a loan secured by a car, get a loan secured by a car

If you need funds to solve your financial issues, then you can get the required amount by leaving any property as a pledge to the bank or by bringing guarantors. It will be very easy to get a loan secured by a car, but different banks set different conditions:

• most banks accept only foreign cars whose age does not exceed 10 years, or domestic cars not older than 5 years;
• you can hope to receive a loan if your car is in good condition;
• the age of the borrower must be 21-65 (70) years old, if you are older or younger than this age, then the loan can only be issued with guarantors;
• a prerequisite is also the presence of a CASCO policy, if you do not have it, then you can issue it directly through the bank.

A positive credit history and your reliability play an important role, a certificate of income is an additional plus, although many banks will give you a loan secured by a car without these certificates, however, you will receive no more than 50-60 percent of the market value of your car. Bank experts will need time to assess the condition of the car. If your credit history is good, and everything is fine with income, then you can hope to receive a larger percentage - 70-80% of the cost.

After the money is received in your hands, the car remains in your possession, however, you leave the second set of keys and registration certificate in the bank. In addition, you are prohibited from traveling abroad and a long absence from the city in which you applied for a loan. Credit conditions are not the most favorable - from 17 to 25 percent per year for a period of 0,5-5 years, interest is charged on the balance of the debt. In case of delays, the bank gives you up to two years to repay the debt.

Auto pawnshops have also become popular now, but in comparison with banks, they have a lot of shortcomings and “pitfalls”:

• short-term loans not longer than one year;
• you will receive a maximum of 70% of the cost;
• overpayment can be up to 100% per year;
• in case of non-payment, your car will quickly find a new owner and no one will deal with you for a long time about the reasons for non-payment.

Among other things, for using the services of a pawnshop you will have to pay a state fee, which will be approximately 1-5% of the total loan amount. The services of pawnshops are resorted to only when there is no longer any possibility of obtaining a loan.

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