Used car loan

Through banking institutions, you can get a loan for both a new car and a used car, and in both cases, the interest rate will be 10-11 percent in foreign currency or 13-16 percent in rubles, depending on the chosen bank and the amount of the down payment. .

Despite the fact that banks are willing to issue a loan for new cars, there may be some problems with used cars.

Firstly, there are restrictions on the age of the vehicle: no more than three years for domestic cars and seven years for foreign cars. It is not difficult to understand such a policy of banks, the bank insures: the car becomes the property of a financial institution for the purpose of further sale, in the event that the borrower cannot repay the loan.

Exceptions can be made only for Premium segment cars, the cost of which exceeds one and a half million rubles. For such vehicles, the age is up to 10 years and the number of previous owners is not more than four.

Secondly, they pay attention to the mileage: 50 thousand for domestic cars and 100 thousand for foreign cars. Vehicles whose engine life is more than half depleted are not considered. In addition, to ensure the solvency of the borrower, banks are required to set down payments - from 20 to 50% of the cost.

The third important fact is the age of the borrower. If even pensioners can apply for a loan for a new car, then loans for used cars are issued to persons not younger than 25 and not older than 55 years.

The loan term, I must say, is also reduced - on average from one to five years. That is, we see that used cars are considered by banks as risky, and therefore all necessary measures are taken to protect their financial interests, and the main interest of the bank is to make a profit.

Applying for a car loan with mileage

You can choose a vehicle in any way: in car markets, through ads, in trade-in salons. The first two methods involve additional problems: the bank, oddly enough, stands on the client’s side, and therefore will be interested in the cost of the car corresponding to its actual condition, so you will have to pay extra for the appraiser’s services, which is an additional 1-1,5 percent from the value of the car. Perhaps it is precisely because of this requirement that it is not always profitable for sellers to sell cars in this way.

In addition, the bank will not issue a loan for every car, that is, the seller will be forced to wait for the decision of the commission together with you, although at this time a client can come to him and pay with “real money” right on the spot.

Banks are more willing to issue loans for cars with mileage purchased through car dealerships or trade-in. In car dealerships, I must say, all this paperwork will be entrusted to the managers of the lending department, who will arrange everything themselves, the buyer will only need to provide all the documents.

What documents are needed to apply for a loan?

As a rule, this is a standard set:

• passport with a Russian residence permit;
• certificate of income from the place of work for the last 12 months;
• a copy of the work book;
• international passport.

In addition, many banks may require additional documents, for example, a certificate of family composition and income of a spouse, a certificate from a narcological and neuropsychiatric dispensary, and the consent of other family members to apply for a loan.

If you buy a car from a private person, you will need to bring a copy of the registration certificate, in addition to all of the above documents. And when the decision to allocate the necessary amount of funds is approved, you will need to come to the bank's office with the seller to sign the sales contract.

The bank will also obligatorily require you to insure the car under CASCO, and the amount of insurance for used cars will be higher than for new ones. The bank may even put forward such a condition that if CASCO is not issued, then the loan rate may be increased.

As a rule, banks will provide you with a list of insurance companies, but you should choose only those that you are sure of. After approval of the decision on the loan, the owner is given time to go through all the procedures: re-registration, insurance, obtaining numbers, all documents, passing technical inspection. Until the last ruble on the loan is repaid, the car will actually be the property of the bank, the title will be stored in storage. Well, after paying the entire amount, you can proudly be considered the full owner of a used car.

For many, getting a used car loan is the only way to get your own vehicle. However, do not forget that when purchasing new cars, there can be much more favorable credit conditions, many salons will also offer various promotions, such as a free installation of an anti-theft system or a set of winter tires as a gift. Whereas for used cars, such promotions do not apply. That is, you need to carefully consider all the available options and choose the most suitable one.

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