In view of the fact that not every motorist can afford to acquire a vehicle for the cash, the customer customers of car dealerships are caused by such a banking service as a car loan. Often proposing to issue a loan on a car with a minimum interest rate (which for customers is a very tempting offer) banks are silent about the existence of a number of additional components, on which overpayment depends.Among the factors affecting the overpayment include:
Commissions. In addition to the fact that the bank for the use of money is accrued at the interest rate, the overpayment may also be submitted by the Commission for Settlement Service and the Commission for the Provision of the Credit.
Fines. Even when issuing a loan with a minimum interest rate, one should not forget about the penalties following the untimely deposit of funds on the bank settlement account specified in the loan agreement. Some banking institutions also provide for the payment of fines for early repayment of the loan.
The initial contribution that reduces the overpayment of the interest rate, the commission for the settlement service and the insurance service. The more own money is made by the client when applying for a loan as an advance, the less overpayment will be.
The country of the vehicle. To date, the most profitable are the conditions for the purchase of a car of the domestic brand. As for foreign vehicles, their purchase on favorable terms is possible only if an agreement is concluded between the bank and the branded car dealership, according to which the banking institution has the obligation to provide customers with funds for car loans on special conditions.
Car insurance, which is a necessary condition when the security of the loan is the purchased vehicle.
Life/disability service or work loss insurance. Insurance is the guarantor that in the event of an insured event, the bank will be returned to the bank.
Thus, before proceeding with the preparation of a package of documents on a car loan, it is advisable to consult several banks regarding the conditions they offer, and opt for that banking institution, the conditions in which are most favorable.