Modern technology allows you to get a loan at the place of purchase of the vehicle. This saves a lot of time and keeps the buyer from the extra visits of the banks. However, most buyers of cars prefer to apply directly to banks.
If at this stage only the lowest rate is essential, then a direct appeal to the credit institution will provide a loan with the interest lower by 1-1.5, but in combination with the expansion of the requirements for the package of documents and, possibly, with a more significant down payment.
Different Options of Taking a Loan
Car dealers usually cooperate with several banks. If you patiently search, you can find stocks during which car dealers offer individual brands on credit at a rate lower by 3-5 than usual. No bank can offer such conditions. However, such offers are rare.
Impatient and thrifty purchasers can take advantage of express loans and loans without insurance from banks. They can save time or finances. If you look closely at the conditions, the benefits obtained are not so attractive anymore. Online auto loans https://cashspotusa.com/auto-loans/, can be a better option.
Almost any car dealership allows getting an express auto loan. Half an hour after the presentation of two identity documents, and you can get a loan and go home by your own car.
Due to the increased risks, banks raise the interest rate from the standard by 0.5-2. If there is no time to collect documents confirming solvency, you can calculate the amount of overpayment.
Buyback System
The is a system of auto loans with a delayed repayment and the possibility of the repurchase. In this case, the entire amount issued on credit is divided into two parts.
The first one is subject to monthly payments in equal parts according to an audit scheme;
There are additional features for the second part.
When concluding a loan agreement with a dealer, a preliminary purchase agreement is drawn up. After the completion of the loan repayment, the borrower sells the vehicle to the dealer on the previously drawn up conditions. The funds received are covered by loan debt.
After the conclusion of a contract, the dealer clearly specifies the requirements for the car being returned. If a condition is violated, the dealer has the right not to buy the car. If the borrower does not want to part with his car, then he can give all missing amount of money.
With this form of a loan, deferred debt can reach 20-50, and monthly payments are less than with auto loans with necessary conditions. However, interest expenses are higher. With the standard loan, they decrease as the remaining amount decreases, while with the buyback system, the amount of payment remains the same until the last month.