Offers of car loans and car loans.
Car loans and loans have become very popular in recent years. This is related to the fact that relatively few people have the opportunity to buy a car for money saved.
At the same time, car loans are cheaper, usually by several percentage points, from available cash loans. Banks are sure that the purpose of a loan is the purchase of movables, while at the same time they have collateral in the form of the object of purchase.
Car loan loan
This is a type of targeted loan, it is not just a loan to buy property that is a car, but also using it we can credit purchase, for example: a trailer, scooter or a boat with a motor engine. A loan or a loan may be both granted to purchase a new and used car. However, it should be taken into account that with older cars, the costs of credit are usually higher. The maximum loan period is about 6-8 years.
Where to get a car loan?
We can apply for a loan in any universal bank, as well as in the so-called car banks, supporting the sale of a given car company. However, we should start the search with a bank that runs our account and whose services we use. Then we can count on preferential treatment, because the bank has an insight into the credit history. You can also expect a lower commission from the bank, as well as resignation from the need to make a contribution.
Where is the best way to get a car loan? This is an individual matter, because some credit parameters are better for others, and do not necessarily correspond to others.
Documents needed for a car loan
As with every loan granted, the bank will require a certificate of earnings, however, it often deviates from this requirement if we borrow from a bank that maintains a personal account or if we make a large own contribution. In this case, only a statement of income should suffice.
In addition, when buying a used car, we must provide a certificate from the register of pledges, about the lack of establishing a pledge on the purchased movable property. In the case of buying a car in installments, you also buy autocasco (Read in addition: What are the benefits of third party liability insurance ). To secure the loan itself, banks usually use a registered pledge or transfer. There are also less popular security features, such as: vehicle card deposit, blank promissory note, partial or conditional ownership.
Pledge and transfer
To establish a registered pledge, a written agreement is required between the person authorized to dispose of the subject of the pledge and the bank and entry into the pledge register. This must also be noted in the vehicle registration document.
The transfer of title as collateral for a car loan means that the borrower transfers ownership of the vehicle to the bank. In such an agreement, the bank simultaneously undertakes to return the title in the case of repayment of the car loan. It also means that we can not sell a given vehicle as well as make any major technical modifications.
An alternative to car loans is: leasing, cash loans and a mortgage loan.
Remember: by choosing any credit or loan, we must pay close attention to all types of promotions, additional costs, eg related to early repayment of the loan or whether it is possible to postpone the repayment of the loan, etc.