Profitable car loan: how to choose?Often, when buying a car, people resort to the help of a bank, because for a long time it is difficult to save on a car, and when registering a car loan, you can instantly make a long -awaited purchase. Having decided on a visit to the bank, do not rush and trust tempting advertising booklets. Small preliminary monitoring of existing car loan programs will allow you to choose the right solution.
What to look for when choosing?
The first should be remembered that a car loan with a low interest rate is not always the most profitable offer. Often a low rate is provided when the bank charges additional commissions – at a time when issuing a loan, or including them in monthly payments.
The cost and cost of insurance, which is necessary when pledging the purchased car, also increase. CASCO insurance for a used foreign car can cost a car owner 7-12% of the cost of the car, for a new car less contributions-they reach 3-6%. It is necessary to know that the beneficiary for the voluntary auto insurance policy is the bank who has provided a loan for the purchase of a car. It is the creditor who, upon the occurrence of an insured event, will decide on what purpose to spend compensation from insurers-repaying part of the loan, or repair and renewal work.
It is also better to clarify the conditions of early repayment of the car loan in advance in order to change the means of transportation before the end of the borrowing period, you do not face unpleasant surprises and restrictions.
How to look for the best offers?
In order to take a car loan with a minimum overpayment, sometimes it is enough just to learn about seasonal promotions and special offers that can arrange both banks and car dealerships. During the limited period of time, you can arrange a loan at a rate that is significantly lower compared to standard lending conditions, or get free insurance.
A car loan for a low percentage may provide for tightening other conditions and requirements of the bank, for example, you will need not only a passport, but also an income certificate and additional security – the guarantee of another person.
The bank in which you are a salary client will also be able to offer you a preferential interest rate or reduce the requirements for the size of the initial contribution. But, on the other hand, a discount to the cost of car loans is provided to those borrows who independently pay more than half of the cost of the car.