Cars have become an integral attribute of the life of any modern person. It is hard to imagine your own comfort without them. But buying a car is still expensive and not accessible to everyone.
Therefore, various financial institutions and car dealers provide lending, leasing or loan services that many drivers willingly use.
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The unwillingness to wait for many years for the realization of their dreams makes many motorists look for the most profitable loan offers. They turn to car dealerships, banks and other companies to get cash.
But at the same time, customers are guided by the most favorable conditions, so as not to overpay extra amounts of money.
Thus, a car loan without interest is especially popular because of its name alone. But does it really have the same benefits? Or does it hide pitfalls?
In this article, we will talk about all the advantages and disadvantages of an interest-free loan, provide information on where you can get it and how not to fall into a hidden financial scheme that will make you pay significantly more.
What does this mean
The very name "interest-free car loan without a down payment" speaks for itself that the annual interest rate will not be charged. But the question arises: what benefit does the lender have?
And its profit lies in other margins, because this type of lending is a kind of iceberg with a large number of pitfalls.
Motorists who wish to take advantage of such a loan should be aware of the following hidden fees:
- payment for opening and maintaining a bank account for contributions of money for the use of a loan;
- interest rate for servicing the monthly payment;
- annual bank service fee;
- registration of a plastic credit card;
- commission for early payment of debt;
- late payment penalty;
- CASCO insurance is mandatory - and this is an additional cash waste, 2-10% higher than usual.
Also, a hidden scheme of interest-free lending includes a mandatory an initial fee in the amount of almost 50% of the cost of the entire vehicle.
Note that insurance can only be obtained from bank partners, so they can overstate the cost of the policy, and this allows you to recapture the margin on loans.
The bank will argue that other insurers do not suit it, they are not as reliable as a partner. The scheme is almost imperceptible and quite profitable for the lender.
Thus, a loan without interest is not the most profitable opportunity for a borrower, because it includes many hidden payments that are not provided for in classic loan programs at all.
How to find an interest free car loan
Finding such an offer is not difficult, as evidenced by the endless amount of print advertising and ads on TV and on the Internet.
Just remember their contact details and get in touch. It is noteworthy that interest-free loan offer not only banks, but also individuals and manufacturers of road transport.
At the same time, it is important to be careful not to become a victim of unscrupulous schemes from scammers.
From private individuals
Interest-free for this category of creditors is not news for a long time. And a large number of borrowers go to them, because the process of obtaining funds, at the same time, is the most simplified, and overpayments on the loan seem minimal.
It is better to take an interest-free car loan from relatives, friends or good acquaintances, as these people are unlikely to be scammers and you will have fewer problems.
Individuals are offered a free contract, no commission and compulsory insurance, the car is checked by a lawyer. There is even the possibility of processing the transaction on the day of application.
But at the same time, there are some nuances, which lie in the reliability of the lender. In turn, the fact that they themselves impose a vehicle dealer is considered a negative point.
In the bank
Most of these financial institutions offer car loans without interest throughout the territory. Russian Federation, so finding such a bank is also not difficult.
The process of applying for and obtaining a loan is similar to classic programs. An interest-free car loan in Moscow can be issued at all representative offices of the most reputable banks in the country.
For this, the following documents are required from the borrower:
- Passport - a certificate that the borrower is a citizen of the Russian Federation with a permanent residence permit.
- Employment book - proof of income.
You can find a bank on the Internet, read the conditions and reviews, then leave online applications with a note that you are applying for a loan without interest. A response to your request should be expected within 1 hour.
Scroll financial institutions that provide their customers with interest-free car loans:
Banks require that the monthly payment does not exceed the amount of the monthly income of the borrower, otherwise it promises a refusal.
Note that although many organizations have the same loan offer, the conditions may differ significantly.
For example, an interest-free car loan is much easier than because there are no strict restrictions on choosing a vehicle.
From the manufacturer
Many motorists know that a car loan from a manufacturer is in many cases profitable proposition because in this way they try to promote their own products.
And the essence of lending from the manufacturer is that he assumes the payment of the interest rate of the loan:
In addition, automakers are actively cooperating with banks. They raise the cost of certain brands of cars - the most popular - the lender puts forward their own interest, so that the amount is quite decent.
Then the manufacturer offers a payment of interest, which is a hidden markup - an inflated price. In such cases, the client sees only benefits in cooperation with an official car dealer.
According to this scheme, the buyer is encouraged to buy, especially if all three parties remain in the "plus": you get favorable conditions, the bank - interest on the loan, and the manufacturer - the demand for their products and income from its sale.
In the showroom
Interest-free loan with the participation of a car dealer is the same as with a manufacturer, but the repayment bank interest the shop is responsible for.
Such a move allows the auto shop to gain more trust and recognition from customers.
In this case, the borrower needs to find an official car dealer who cooperates with banking organizations and offers an interest-free loan program.
Car loan in CentAuto-M:
Car loan in Inkom-Auto:
The pitfall in a deal with a car dealership is additional paid procedures in the form of vehicle diagnostics, if it belongs to the used category.
The loan officer from the store acts as a kind of intermediary between the financial company and the buyer of the car, and his work is estimated at 1-1.5% of the cost of the car.
Take advantage of this scheme, because large car dealerships cooperate with several banks at once, which in turn offer different conditions, make promotions that can become profitable.
If we analyze three methods of car lending, then the most profitable option is considered to be an interest-free loan with the participation of a car manufacturer, because such a scheme practically does not differ from classical programs in terms of conditions, it is the most transparent and does not have pitfalls that can become additional unwanted waste for the recipient loan.
Features of obtaining
Interest-free car loan in formal terms is no different from the classic counterpart. The scheme of its registration and receipt is the same.
The following requirements are put forward for future borrowers:
- They must be citizens of the Russian Federation with a residence permit.
- Age limit - 21-60 years. Exceptions for clients whose age exceeds the upper limit are possible with life insurance.
- The monthly loan payment should not exceed 40% of the monthly income of the loan recipient.
- Insurance is issued only with banking partners.
If you fall into the category, then for registration you will need documents:
- copies of completed pages of the Russian Federation passport;
- driver's license;
- extracts from the current workplace;
- monthly income statement.
The loan officer of the company you contacted considers your application, you are contacted, invited to the office, where the conditions are discussed and the contract is signed.
It is noteworthy that for the comfort of customers, an application can be left on the website by filling out a special form, but at the same time indicating that the loan is interest-free.
Advantages and disadvantages
Many bank customers see only advantages in such a loan, because the loud name hints only at benefits, but in reality there are much fewer advantages than pitfalls.
The clear positives are:
- Requires a small package of documents.
- The application is considered during the working day.
The disadvantages of this financial scheme are:
- The presence of a down payment in a particularly large amount - 30-50%.
- The term of the contract is 2 years.
- An increase in the cost of a vehicle that will participate in the interest-free loan program.
- Partner insurance is a must.
The listed advantages and disadvantages of such a financial scheme give reason to think about the profitability of lending without interest, because in fact there may not be any benefits for the client in the transaction for the client.
What you need to pay attention to when applying
When making loan agreement be sure to study in detail all the formal points, because under them all the financial tricks of lenders and enterprising car dealers are hidden.
Pay Special attention on the terms of the loan, on the size of the down payment, on the availability of additional services, which immediately indicate the unprofitability of the loan without interest. If there are incomprehensible places, then immediately demand an explanation for them.
It is useful to use the services of independent experts who, for a fee, will help you decide on a profitable loan program.
Interest free car loan Special offers from banks and car dealers, which are intended for individuals.
Despite the presence of many hidden points that testify to the disadvantage for the borrower, the number of users of such an offer is growing from year to year.
To date, on banking market Serious competition is being played out in the field of car loans. To obtain additional clients banks are developing new lending programs that offer consumers the purchase of a car in installments on mutual favorable conditions.
For every car enthusiast, the most desirable type of loan is an interest-free or zero loan, since it is based on the most low interest on a car loan. This option is suitable for those who have a stable wages who has enough money to make a down payment.
A credit program that has the form of an interest-free loan is such a system: you buy a car at a car dealership participating in this program, which has a corresponding agreement with a specific bank. You will have to pay a certain share of the cost of the car yourself, and the remaining funds will be paid to the car dealership by a credit institution, that is, a bank. In the future, you will pay the rest of the debt to the bank without any overpayments, in installments. Some banks provide an unlimited amount of credit, allowing the consumer to purchase not only a car of the domestic auto industry, but also an expensive car of foreign manufacturers.
Pitfalls of an interest-free car loan
Many motorists imply a hidden catch in interest-free lending programs, but banks convince the opposite by appealing to a well-functioning scheme of mutually beneficial concessions. Registration zero loan for the purchase of a car occurs between three participants in the transaction:
- Buyer acting as a debtor
- The factor which is credit organisation– bank
- Lender - it is a car dealership participating in the program and having an agreement with participant No. 2
Let's see how the factoring operation is actually carried out, which is "hidden" from the buyer's gaze:
- An agreement is concluded between the two parties (a car dealership and a bank), the essence of which is the assignment of the rights of the buyer's debt.
- The buyer comes to a car dealership with the aim of purchasing a car, having with him an initial payment amount equal to 30 to 50% of the total cost of the desired purchase.
- When the purchase of a car is completed, the lucky owner of the car will pay the remaining amount to the bank.
This mechanism has its own positive sides- the buyer does not need to deal with the calculation of interest on the loan and other payments related to the transaction. The consumer will always know fixed amount on a loan that needs to be repaid to a lending institution.
If a car enthusiast has questions about the contract, and he turns to a bank employee for clarification, then he is unlikely to be able to find hidden interest that turns a zero car loan (in other words, it is 0% per annum) into a standard interest-bearing loan.
You need to know that there is one condition for which the bank will definitely require a fee from you - a one-time fee when registering a car. This moment will be spelled out in the loan agreement in clear text.
We suggest that you familiarize yourself with the list of payments that are hidden from the eyes of the buyer, but they may be present in the contract:
- Interest on each payment made once a month to a credit institution.
- Opening fee bank account, which is required to credit money for the purchase of a car.
- Increased interest in the case when the buyer repays the entire amount of the debt ahead of schedule.
- The lender may provide for an annual payment for servicing a bank account.
- The contract will provide for CASCO insurance in without fail. In addition, some banks provide health and life insurance for the buyer of the car.
- You may be asked to open a credit bank card, and you will also need to pay for its maintenance.
- In the event of a delay in the next payment on the loan, the bank will apply penalties by charging a fine in the amount of money.
In addition to the fact that when applying for an interest-free loan for a car, an overestimated down payment is provided, reaching 50% in some situations, the loan term may be limited and range from 6 to 12 months. Zero car loan programs also provide compulsory insurance CASCO, and one should take into account the fact that its cost will differ upwards from insurance standard loan. The cost may exceed by 2-10% - this must be firmly understood and taken into account. Moreover, the list of insurance companies involved in this species om insurance, rather limited and the amounts, as a rule, will be announced the same (banks have special agreements with insurance companies participating in the zero credit program). This is how lending institutions get their benefit on car loans.
Remember that when concluding a loan agreement, a bank employee will not focus your attention on this point, motivating this fact by the fact that a credit institution is not entitled to set insurance rates. Though this moment bears little pleasant, such car loan programs still deserve the attention of the buyer.
Features of zero car loan
Taking into account all the disadvantages that seem at first glance, the program of an interest-free loan for the purchase of a car presents certain advantages to buyers. For example, a monthly payment made by a buyer would be much lower than a standard loan option. Despite the fact that the insurance will need to be paid once a year, monthly the consumer repays only the main (true) debt, and not interest on the use credit funds. This condition represents a benefit to those buyers who plan to “close” the debt to the bank within 12 months. If carried out comparative analysis zero credit and the first option is undoubtedly more economical and profitable.
There are other bonuses of this program. In addition to the fact that the borrower receives a low interest rate, he gets the opportunity to get insurance in case of an unfavorable set of circumstances - car theft. When making a purchase on credit, a citizen, in addition, can immediately leave the car dealership, sitting behind the wheel of a long-awaited purchase. That is, he will not need to save money and wait until the required amount is collected.
Bank conditions for obtaining an interest-free car loan
There are a number of conditions that are mandatory for those motorists who want to get an interest-free loan:
- The consumer is obliged to pay monthly an amount not exceeding 40% of his income.
- Borrower must be between 21 and 60 years of age. For people who have reached the age of 60, an exception is made if they have insured their lives.
- The buyer is obliged to purchase a CASCO insurance policy only from those insurance companies that are partners of the bank.
These conditions must be unconditionally met, but in addition to them, there is also a package of documents that must be collected - without which the bank will not issue a loan:
- Certificate from the official place of work;
- Passport of a citizen of the Russian Federation;
- Certificate of income (2-NDFL);
- Driver's license.
You should focus on one important point: if you take an interest-free loan and in the future do not comply with the debt repayment schedule, then you will face higher fines and penalties than with a standard loan. To compensate for the "damage" received, the bank has the right to increase the amount for servicing the credit account.
If you nevertheless chose the offer of a bank or a car dealership to buy a car on credit without interest, then before signing the contract, ask about the methods of paying for the car, as well as the terms of the loan. We recommend that you familiarize yourself with the offers of a zero loan in such banks: Bank of Moscow, VTB 24, Sberbank.
What a Buyer Needs to Remember When Applying for a Zero Car Loan
Despite the tempting name "interest-free loan", the buyer must be clearly aware that the transaction will not be free. If we refer to Art. 819 of the Civil Code of the Russian Federation, it is stipulated that the borrower "is obliged to return the entrusted amount of money and pay interest." This means that any credit issued for the purchase of any product will never be free for the consumer.
We suggest that you familiarize yourself with a short list of important points that you need to focus on before deciding on a loan:
- Initially, weigh your financial capabilities and the need for a loan to buy a car. Do not forget that signing a loan agreement is much easier than getting it terminated in case of financial difficulties.
- Before concluding a contract for the sale of a car, calculate the total price of the coveted purchase, taking into account additional equipment: radio, alarm, disks, and so on. In addition, you need to add Additional services. For example, corrosion protection, etc. The total amount may be significantly more than that indicated in the advertising booklet or that was announced by a bank employee in a telephone conversation.
- Do not rush to sign the proposed package of documents - you need to carefully study the contract for the sale of a car, a loan agreement and other papers. Remember that the contract should not contain veiled conditions for repaying the loan - everything should be clear and transparent. Each consumer has the right to ask questions of interest, and a bank employee is obliged to provide the necessary, reliable and timely information.
- If after buying something happened to your car (theft, accident), then no one will release you from paying the loan. That is, the repayment of the loan will need to continue in any case.
- Important point the contract to which you should pay close attention is the insurance of your car. We recommend visiting several banks in order to study the insurance conditions accompanying the transaction. After that, you can choose the most advantageous option for you. Remember that the insurance contract is not a mandatory part of the loan agreement.
- If you are having a hard time and you have lost the ability to repay the loan, having a good reason, you should immediately go to the bank to write an explanation of the current situation in writing. You need to have documents with you that confirm your words.
- In the event of a defective product, you have the right to claim damages if the machine is returned.
To summarize: an interest-free loan to buy a car for many citizens - a great opportunity purchase a car of both domestic and foreign production. But before signing the sale and purchase agreement, take a careful study of the loan agreement and related papers. In addition, analyze the offers of several banks to make the best decision for your wallet.
Guys, today, as usual, I post a very useful article. As it is customary to say now - "I burn the topic." And the theme is 100% working. Tested by one of my friends (I taught him). The bottom line is - not to pay interest on a car loan! How do you ask? This is not possible! Everything is possible, you just need to think. The main thing is that the topic is 100% legal, there are no loan evasion and other violations of the law here! So read and understand...
Guys, I want to warn you right away that the topic does not work for all cars, but for cars from 150 to 300,000 rubles. At least 300,000 is the maximum threshold! Well, now the actual scheme.
IN general scheme based on credit cards of various banks
The bottom line is that now there are a lot of banks, even serious ones that are among the 20 strongest, will gladly issue you a credit card, the maximum credit limit, as I wrote above - at 300,000 rubles. Also, you can connect a credit limit to your salary card, or to some other card (for example, I have WEBMONEY card and it also has a credit limit). So what? - you ask. After all, this is an ordinary loan, we withdraw money, and then we put it in parts - we extinguish the loan! And you're right, but you're missing one important condition of many (now) credit cards.
And it tells us if you withdraw money and return the money within 30 - 60 days (each bank is different), then no interest will be charged from you. In simple words Withdrawn 300,000 rubles, used them, but returned them on the 59th day, then they didn’t take any interest from you!
Action plan
We need to issue two credit cards (or connect a credit limit), two different banks! The main thing is that no interest is taken for cash withdrawals (usually you need to withdraw from the same bank), and also that free term(use of money) was 60 days or more. You will have to look for banks, because not everyone has the same conditions. You also need to have a good credit history(as well as permanent work) - otherwise you will not be issued a card. It is important!
If you have not released two cards, then the scheme will not work!
Now, how did my friend. He chose a RENAULT LOGAN (3 years old) in good condition, in a “normal” configuration (enough for him) and agreed with the seller for 265,000 rubles. Takes money from one credit card and pay for the car. The counter of free time has gone (I will remind about 60 days). Then we wait 50 - 58 days (for insurance) and withdraw money from another card (second card) and put it on the first card, that is, we extinguish the money on the first card, and the counter on the second turns on again for 60 days! Then we put the first card on the second, and you can play there for a very long time!
What we get is that we practically do not pay interest on the loan at all!
I want to note that the free limit (for 60 days) is restored as soon as you have paid the full amount, in our case 300,000 rubles.
My friend, when he transfers from card to card, adds a little of his money, every month about 3000 - 5000 rubles. Thus, he gradually reduces the credit limit, which must be transferred from card to card. And there is no interest on this type of loan at all!
Also, according to this scheme, you can add the missing money to buy a car, again up to 300,000 rubles!
True, there are always cons:
First, banks can change the terms of crediting such cards (and especially in our current economic situation).
The second - the maximum amount is up to 300,000 rubles, you can buy either an inexpensive car or a used one. For expensive cars, this scheme does not work.
That's all, I think this article was very useful to you, so tell your friends about our site (at least in social networks), because we really only benefit.
Reading time: 6 minutes
Currently, there are a large number of car loan offers on the market. Target loans not only banks, but also car dealerships make out for the purchase of a car, leasing companies. Plus, you can also buy a car at the expense of a non-purpose loan. Given the great competition, each market participant wants to attract solvent customers in every possible way. To do this, they come up with different special programs with interesting conditions. One of these financial products is an interest-free car loan.
What is an interest free car loan
Often, car dealership managers offer potential customers to take out a car loan at 0 percent. Many do not believe in such a “generosity fair”, because banks are not charitable foundations and their main goal is to make a profit. By the way, this also applies to other market participants. But then, where is the catch in the loan program? First, consider what parameters are characteristic of preferential lending conditions:
- Usually a low, almost zero interest rate is offered to customers if they apply for a loan or installment plan for a short period of time - up to 2 years. This is due to the fact that within a short time market value the mortgaged car will not change much and in case of problems with the repayment of the loan, it will be possible to sell it and pay off the debt, including penalties.
- To get a loan on favorable terms, the lender requires the borrower to pay an initial installment - at least 50% of the cost of the vehicle. This condition is similar to the previous one. Given that the loan term is short, it is easier for the client to repay a small amount credit, and the risks of the lender are reduced.
The income of the lender is formed in such cases at the expense of additional commissions, which are indirectly paid by the buyer of the car. Typically, car loans from 0 percent provide for high insurance rates, plus the car dealership often overstates the cost of the car. Everything is due to the fact that the remuneration of the bank or other creditor is already included in the insurance payment or in the price of the car. So sometimes it can be even more profitable to take a simple loan than to apply for a preferential one.
There is one more point that a potential client who wants to get a car on credit without interest needs to pay attention to - the presence of additional commissions for servicing the contract. Very often, banks set a monthly commission for interest-free loans, which more than covers the interest fee.
Also popular is the scheme for assigning debt to a partner bank by a car dealership. In this case, the dealer draws up a car for the buyer on an interest-free installment plan with the subsequent sale of the debt to the bank. The latter redeems the debt of the client not by actual cost, but with a discount, which forms the profit of a financial institution.
However, it should be noted that car loans with zero rate disadvantageous. Sometimes this marketing ploy is resorted to to speed up the sale of slow-moving car modifications. Thus, the dealership increases its turnover and makes room for new, more attractive cars.
Arranging an interest-free car loan
You can usually find an offer for a loan with a zero rate on the website of a car dealership or in advertising booklets. This is how they attract potential customers.
Actually, car loans are issued according to standard scheme. The buyer must provide a complete package of documents so that the lender decides on an installment plan or a loan. It can be minimal or include documentary evidence of employment and income. In addition, the borrower must meet the requirements credit program and have no arrears.
What cars can you get an interest-free loan for?
Not every car can get an interest-free loan. Preferential terms are usually offered:
- on slow and unpopular models;
- at the end of the year, when the car dealership needs to renew its stock, and for this it is necessary to sell the existing cars;
- on not quite high-quality cars that have proven themselves poorly in the market;
- on very expensive versions of cars that are problematic to sell for cash.
It should be noted that you can get an interest-free loan in car dealerships and banks only for new cars. Regarding the purchase of a used car in installments, sometimes such offers are found among resellers. They are ready to wait for the full payment of the cost of the car for several months, if only the goods do not stay for a long time.
Where and how can I get an interest-free car loan
You can get a car loan:
- At a car dealership. Usually, managers, having seen a potential buyer, immediately offer to get acquainted with favorable lending conditions - both banks and a car dealership. Given that one car dealership can cooperate with several financial institutions at once, the client is given a choice. By the way, very often the automaker provides an opportunity to get an interest-free loan through a car dealership. In this way, it increases demand and increases availability for its vehicles.
- In the bank. Here, a potential buyer will be offered to use only lending programs of one financial institution. But not always among them there will be an interest-free loan. You need to look for a similar program from partner banks of the car dealership.
- From a private person. This option is for buying a used car. You can meet an ad for the sale of a car in installments on specialized sites.
Interest-free car loan at the bank
Not many financial institutions have interest-free car loans in their assets. This is due to high risks of non-repayment of the loan, as well as complex schemes for calculating commissions and the need to enter into partnership agreements. Most often, preferential conditions can be found among banks that specialize in car loans and do not have other lending programs in their assets.
Below is a list of banks and their conditions for an interest-free car loan:
Name of the bank* An initial fee, % Term, months Loan amount, rub. Bank website Rusfinance from 10 24 50 000 - 6 500 000 https://www.rusfinancebank.ru Genbank 50 from 12 to 30 100 000 - 3 000 000 https://www.genbank.ru *The information is relevant at the beginning of 2019, so check it on the official websites of banks.
To get a loan on favorable terms, the borrower must necessarily conclude an agreement personal insurance, as well as purchase a CASCO policy. In this case, the insurance company must be accredited by the creditor bank.
Conditions of a car loan from the manufacturer
Often, automakers, so that their products do not stagnate in car dealerships, give potential customers the opportunity to receive installments at 0 percent from the dealer. Thanks to this marketing move, buying a car becomes more accessible to a wider range of people, which means it is accelerating and growing. money turnover between factory and dealer. Given that automakers are interested in selling their vehicles as soon as possible, a potential buyer who has already decided on a car brand should look for a similar financing program in his official dealer.
In addition to active cooperation with car dealerships, major automakers also create their own specialized banks, they are also called captive. The following similar financial institutions operate on the territory of the Russian Federation:
- "BMW Bank";
- "Mercedes-Benz Bank Rus";
- "Volkswagen Bank Rus";
- Toyota Bank.
However, among the existing programs of these banks there are none where the rate is set at zero. For example, Volkswagen Bank Rus issues loans at 8.9% per annum, Mercedes-Benz Bank Rus - from 10.8% per annum.
List of car brands for which you can take a car loan from the manufacturer
Given the presence of the above banks in the Russian Federation, potential buyers can purchase cars of the same brands (BMW, Toyota, Lexus, Mercedes-Benz, Volkswagen, etc.). In addition, domestic vehicle manufacturers, such as AvtoVAZ (LADA brand), are active participants in the car loan market. You can find out on what conditions it is possible to obtain financing and which banks it cooperates with at site.
It should be noted that almost every major automaker has its own financial company(not necessarily a bank), whose task is to make buying cars more affordable with the help of a loan. Usually the name of the company is the same as the name of the manufacturer - for example, Porsche Finance.
In the showroom
Installments at 0 percent per annum in car dealerships are most realistic to get. Standard financing conditions provide:
- Initial payment from 40-50%.
- Loan term from 12 to 36 months.
- CASCO insurance.
- The maximum amount depends on the brand of car and financial opportunities car dealership. Thus, MAS MOTORS is ready to issue an installment plan for up to 1 million rubles.
From private individuals
Individuals can apply for installments only on used cars. The terms of the transaction usually provide for a large down payment, from 50% of the cost of the vehicle, as well as a short payment breakdown period - for six months, a year, rarely for more. But the advantage of cooperation with individuals is the absence of the requirement to buy a CASCO policy.
Finally
Greater competition in the car loan market contributes to lower interest rates, which makes the conditions for buying a car more affordable. You can get financing for the purchase of a car directly from banks, car dealerships, from automakers and from individuals. But, unfortunately, to meet lending programs with zero interest rate not easy. This is due to the high risks that lenders bear today. In order to reduce the likelihood of a loss from the transaction, they establish more stringent lending conditions:
- a large down payment - from 40%;
- short-term nature of the transaction - 12-36 months;
- obligatory registration of a CASCO policy.
But it should be noted that under interest-free programs, financial institutions earn on commissions and agency fees. In other words, the interest that the client would pay on the loan, the bank receives from an insurance company or a car dealership. And they, in turn, add them to the cost of the CASCO policy or include them in the price of the car.
To date, very few banks (Rusfinance, Genbank) provide interest-free loans for the purchase of cars. They are only available for affiliate programs with car dealerships and apply only to certain car models.
Automakers offer preferential credit terms to make buying their cars more affordable. Thus, they increase sales volumes, receive more revenue. But, unfortunately, among automakers, it is rare to find loans at a zero rate, although the majority of programs have reduced rates.
Real installment with a zero rate is found in car dealerships, as well as among individuals. The first option is suitable for buying new cars, the second - for used ones.
As a conclusion, it should be noted that buying a car with a zero rate makes it more affordable for the client. As for the overpayment on such a car loan, the calculations should take into account all the payments that the borrower is obliged to bear during the service. Thus, it is possible to approximate real value interest-free loan to compare with other financing conditions.
A loan without interest is a product of Vostochny Bank: Video
Russian citizens now have the opportunity to purchase vehicle on credit without annual interest. But is this loan beneficial to the buyer and what is hidden behind the attractive zeros of car dealerships?
Dear readers! The article talks about typical ways to solve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:
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What is it and is it possible to take it
A car loan with zero annual interest is not a mass phenomenon, but it is not so scarce either. Attractive installments for vehicles are provided by a dozen Russian banks.
Financial organizations, cooperating with banks, arrange promotions for certain brands of cars and issue interest-free loans. Institutions praise this type of loan as the most profitable and easiest way to buy a car.
Especially focusing on the fact that the money is given in installments almost free of charge.
As practice shows, an interest-free loan is not always free. This loan it may not be affordable for a commoner who will regret more than once that he did not take a car under the classic car loan program.
To be honest, there are better car loans on the market and ways to borrow money.
After analyzing the contracts of financial organizations, it is almost impossible to find a loophole that leads to a trick and deceit. Everything is correct, precise and clear.
You will not find any commissions, under which easy money is often hidden, nor other tricks, therefore, a zero loan turns into an expensive loan.
In the process of obtaining this car loan, you will be required to pay a fee only once. The amount itself will be registered in the program. It is not too large and does not hurt the eyes in comparison with the insurance payment.
As for other contributions, they are not provided. So where is the catch here? A factoring scheme is a series of financial and legal transactions, according to which a vehicle is bought and sold to customers.
The creditor bank, cooperating with the car dealership, in fact, does not issue any loan. According to the documents, vehicles are purchased in installments in the cabin, and the financial organization has nothing to do with it.
The car loan program specifies details, loan term, additional conditions.
The next stage is key moment schemes. The financial institution fully redeems the rights under the agreement and becomes the sole creditor. What you owed the car dealership is moving on banking organization.
On the one hand, the bank helps to repay the loan to the borrower, and on the other hand, it makes money on customers. For example, a car costs $50,000. Half of the amount is paid by the buyer in the amount of 25 thousand, and part is paid by the bank, but not the entire remaining amount of money, but 23 thousand.
In fact, the borrower must repay the loan in full amount of 50 thousand. And here is the difference of 2 thousand dollars - this is the earnings of a financial organization from scratch.
That is, car dealerships simply sell the rights to loans at slightly lower prices, without losing a lot of profit. After all, there is an increase in sales and turnover of products. And for the bank a great opportunity to earn personal money. This official version, which is distributed by all media to customers.
In fact, the schemes and calculations are slightly different. When sales are going well in the salons, it makes no sense to sell loans at reduced prices. Then the financial institutions themselves overpay the salons, in order for them to implement their lending programs.
In the case when car dealerships could regulate and forcibly raise the cost of vehicles, the discounts would be tangible. They cannot do this, and it is not profitable. Such manipulations will lead to the loss of the client base.
And it turns out that financial organizations do not work according to factoring schemes. Zero loans are not tied to a specific car dealership, it is possible to purchase a car from another dealer.
So who pays for the "holiday"? The answer is obvious, everything falls on the shoulders of the borrower. Auto insurance under this installment plan costs much more than standard car loan programs.
Choice insurance agent The bank does it for you, and you have no right to change anything. A financial institution concludes agreements with insurers in advance regarding customers on interest-free loans. Conditions are simply unrealistic and expensive.
The insurance company pays a percentage of a profitable policy to the bank. That's the whole scheme - financial institutions launder money through insurance companies, which in 90% of cases have the same owner. That is, both the bank and the insurance company are one person in the form of a monopolist in the market.
What are the advantages and disadvantages
Often, financial institutions do everything possible to attract a client to their car loan program. The car in installments has both pluses and minuses.
pros
If you need to buy a vehicle quickly and desperately, then an interest-free loan is ideal. They set it up very quickly and without problems.
Speed is increased by decreasing required documents for this loan. A zero loan is somewhat similar to an express loan.
A significant advantage of an interest-free loan is considered to be the possibility of acquiring domestic vehicles, which was previously impossible.
And the cost of insurance for foreign manufacturers was significantly higher. When early repayment installments - there are no overpayments.
Minuses
But not everyone can afford a tempting car loan. To the client who decided and chose this program you need to have a decent amount in the beginning. The first thing to pay is the initial fee. It can make up a third of the cost of the car.
The most pernicious in this process is the purchase of a CASCO policy. Select insurance company there is no possibility, and the proposed policy is very expensive.
Insurers, trying to seem "good-natured" offer loyalty programs and bonus discounts. However, they are not given to everyone, and you can get them only if you comply with certain rules.
What are the requirements for the borrower and the car
The main requirements for obtaining a car loan to the borrower are the following guarantees:
- providing a passport of a citizen of the Russian Federation;
- driver's license;
- income statement.
If you have not convinced the lender of your solvency, the bank may require additional documents that will confirm your financial condition. It could be employment history or having a passport.
The minimum age of the client must be over 21 years old. The loan must be repaid by the age of 62 for men and 52 for women.
Auto loans are mainly issued for a period of 1 to 5 years. The maximum amounts can reach 140,000 - 150,000 thousand dollars. Annual percentage missing. The initial payment is on average 50% - 60% of the loan amount.
Design features
An interest-free loan is a loan provided to a borrower without mandatory annual overpayments. She is popular with the people. But how sweet is this loan, and what nuances exist when applying for it?
There are two types of zero loans:
- consumer loan;
- interest free loan with grace period.
An interest-free loan with a grace period can be realized using credit funds from the card. The possible amount is strictly limited.
When there is a cashing out of a credit card for a period of 40, 60 or 100 days, and it concerns the amount of the bank's debt, then financial institution does not charge commissions.
The main thing is to pay the required amount to the banking organization within the specified period. If the debt is not repaid on time, then interest appears in the form of commissions for delay on non-repayment.
A consumer loan can be used to purchase cars of domestic and foreign production. An interest-free loan for a new car can be obtained at a car dealership that cooperates with banks.
A feature of obtaining an interest-free loan for a domestic car is a smaller payment for insurance. As you know, huge prices for CASCO are hidden under zero credit.
In the case of purchasing a car from our auto industry, a loan will be more profitable than a loan under a standard car loan program. After all, you do not have to pay a lot for an insurance policy.
When applying for a transport loan at zero installments, carefully read the terms of the agreement.
In case of violation of the points included in the mandatory, fines will be imposed on you. Sanctions in different banks are different and depend on the degree of violation, the loan term, the age of the car.
Where can I get an interest-free car loan and under what conditions?
The largest financial institution in the country has revised its policy in the field of car loans and began to provide loans at zero interest. Such changes have led to a large flow of customers.
But Sberbank, as you know, is famous for its rigidity towards customers and harsh conditions for obtaining a loan. This time he set the percentage of the monthly commission - from 1% - 3%.
Also, additional payments are collected from the client for the execution of the contract, for the consideration of applications and the use of credit funds from the cards. However, the advantage is a small down payment compared to salons. It is equal to 20% - 30% of the price of the car.
An interest-free car loan at Sberbank can be obtained online on the Internet. But to conclude an agreement and receive money, you need to contact the bank. The list of financial organizations that provide their customers with interest-free car loans:
What to remember when applying
In the case of purchasing a car for programs of interest-free loans, be sure to read the terms of the contract. Carefully study each item and try not to miss anything. If you have any questions, please ask the staff.
