Car loan or car loan is a special type of loan, in which the purchased car is issued as a collateral. The credit rate depends on the terms of the loan and the value of the initial contribution. The overview of the car loans below will allow you to choose the best option. All car loans can be divided into two large groups: those issued by banks and those issued by car dealerships. The registration of a loan with a car dealership requires less documents, and is drawn up during the day. In banks, the decision on car loan is made within a few days, and its design may take a working week. However, the value of the credit rate of the car dealership is much larger than the bank’s credit rate.
Depending on the interest rate, loan and other conditions, car loans can be divided into the following types:
one. Express Credit. This is the best option for customers who are limited by time and do not want to spend it on collecting the entire package of documents. Such a loan is characterized by an increased interest rate and a high primary contribution. The deadline is no more than three years.
2. Auto Credit “Classic” (Trade-in). It is ideal for those who decided to exchange their car for a new. In this case, the old car is redeemed, and the amount received is on account of the first credit fee. The advantages include a low credit rate and a loan term of up to five years. To disadvantages – underestimated amount of ransom of the old car.
3. Buy-Back car loan. Provides for the conclusion of the contract between the car dealership and the bank, as well as the ability to return the car to the car dealership at the end of the term. The down payment is 30-50% of the cost of the car.
four. Car loan without insurance CASCO. Issued for cheap or used cars, has a very high credit rate. The loan does not exceed 15 thousand dollars.
5. Car loan without down payment. In this case, only insurance and signaling installation is paid. Differs in high credit interest, very expensive insurance, restrictions on the choice of transport. The advantages include a minimum set of documents.
6. Factoring or interest -free loan. Allows you to buy a car in installments, since it is only given by half the cost of the car, the blessing buyer must pay the rest. It is issued in 5 days (working week). The advantages include the minimum package of documents, the disadvantages – high fines and penalties for overdue payments.