The content of the article
- What is a car loan without down payment
- How much will the car cost on credit without a down payment
- How to get a car loan without a down payment
- Who is given a car loan with no down payment
- Should I buy a car in installments without a down payment
A modern person can get a car on credit without down payment, when the subject of the contract is new, because banks and car dealerships go for such an operation in order to attract customers. The features of such a loan are the absence of the first payment and the increased amount of repayment in general. Special requirements will be imposed on the client..
What is a car loan without down payment
When a person receives a car loan for a new car without a down payment, he takes a certain loan, pursuing the goal of acquiring a car in which the subject of the transaction is put on bail. Mandatory payments during the execution of this procedure include the issuance of CASCO insurance and the life of the owner. The absence of a down payment increases the amount of the monthly payment, and only individuals can issue it – banks refuse to legal organizations.
In this way, you can take a car on credit without down payment of domestic or foreign issue, the price of which reaches 3 million rubles (but the exact amount is better to check with the bank itself). The machine is purchased category B, C or D, may be with a trailer. The loan is annuity, that is, it consists in equal payments every month, in some contracts the possibility of full or partial prepayment is prescribed. The loan amount is transferred to the account of the borrower, from where it then goes to the account of the car dealer.
Some banks may offer to issue a loan in foreign currency, which reduces interest rates, but increases the risks of overpayment due to the instability of rates, so decide for yourself in what currency you will pay the money. Bank offers differ in terms of payment – there is an opportunity to take money for use for a period of 3 months, but with a shorter period the monthly payment increases and the limit on the maximum amount is limited.
How much will the car cost on credit without a down payment
The goal of buying a new car on credit without a down payment should be calculated: how much the purchase will cost you. So, car loan rates start at 15% and make up to 17% at different banks. If you do not want to give the vehicle on bail to the bank, then the rate increases by 2 times. You will also have to pay CASCO, which will be 10% of the value of the car. Plus, consider life insurance costs, which cost from 3000 rubles.
There is an opportunity to save on interest payments, then you have to use the services of a bank where you keep a classic or card account, get a salary and in the one where you already took loans, paying them in full. A good credit history is an indicator in the presence of which interest can be reduced by 0.5-1 points.
How to get a car loan without a down payment
A person can get a car loan for a new car without a down payment in the absence of a mandatory visit to a car dealership or a bank in person – there are ways to contact online. To do this, you need to choose a suitable bank offer and leave a loan application, after which they will call you, specify the design goals, if necessary, consult, give answers to all interesting problem situations.
If there is no trust in the Internet, then at car dealerships there are specialized departments working with certain banks. There is another option of contacting specialized companies that work with auto loans, helping to obtain favorable conditions, without wasting time visiting banks. Mandatory documents for obtaining a car loan include:
- application for extradition in a special form or in a free statement;
- application form with data;
- driver’s license – without them, banks are reluctant to provide car loans, so take care of getting them in advance, or take a consumer loan that will be given to you with no less benefit;
- certificate of income with a copy of the labor;
- second document to establish identity if necessary (TIN, pension insurance card).
Who is given a car loan with no down payment
Getting a car loan for a new car without a down payment is accompanied by the requirements for a person:
- over 21 years old, restrictions – to pensioners;
- the minimum income should be such as to cover a monthly payment with the remainder of the life up to 60-70% of the salary.
- citizenship of the Russian Federation, residency;
- registration in the region where the transaction is carried out;
- good credit history.
Should I buy a car in installments without a down payment
The advantages of obtaining a car loan for a new car without a down payment include factors:
- lack of first payment, which facilitates the purchase process;
- you can leave your car dealership right away in your car – you cannot hold it in your parking lot for a certain period of time.
The disadvantages of this process are many:
- a high percentage of overpayment, if we compare the options with the first payment, because these loans contain bank risks of non-payment;
- a one-time fee may be collected for using the services of the bank;
- purchase is possible only from an authorized dealer under a special program, it is forbidden to do this from resellers;
- increased interest on car insurance;
- until the loan is fully paid, the car will remain in the pledge of the bank;
- some organizations require a guarantor to insure the return of money;
- caught in a state of emergency or a car in relation to which the theft was committed, still requires paying a car loan until full repayment.