Car loan is the best offer. Which bank has the best car loan?

An article about how to properly take out a loan to buy a car - how to choose a bank for a car loan, different types of loans, car insurance, important points and tips. At the end of the article there is a video about how to avoid being scammed when getting a car loan!

If the borrower meets the requirements of the credit institution, obtaining a loan to purchase a car will not be difficult. There are almost always three requirements:

• Registration or residence permit on the territory of the Russian Federation and the availability of documents confirming it;
• Constant and regular income in an amount sufficient for monthly payments;

Getting funds on credit is easy. Let's discuss how to properly take out a loan to buy a car so that you don't regret the agreement later.

Different banks - different requirements

A stable pattern is noted - strict requirements for selecting a lender are combined with favorable conditions. Conversely, more lenient requirements are always combined with a high interest rate and additional costs for the buyer of the car.

For example, VTB and Sberbank consider applications only with official paper (2-NDFL) confirming the borrower’s solvency. The provided extended package of documents will allow you to count on a more favorable interest rate.

The opposite position is taken by CreditEvorBank and Russian Standard. The loan can be issued to almost any citizen of the Russian Federation, and the interest rate will be higher than the statistical average. The use of such tactics allows banks to compensate for losses from non-returns.

The tactics of banks towards sellers also differ. More conservative lenders prefer to work with official regional dealers. Others take this criterion into little account, but on condition that the transaction is carried out through the mediation of a car dealership, which in this case acts as a kind of consignment store. This transaction option will require additional time to complete a full diagnostic and vehicle inspection.

The most conservative lenders are ready to issue funds exclusively for the purchase of new cars; they do not consider used vehicles. Others finance transactions on 3-5 year old cars. With some diligence, you can find a credit institution for the purchase of a car with 10 or more years of experience. The benefits of such a deal are very doubtful.

Getting a loan approved for a brand new car or an older car are two very different things. A car without mileage, from the last 2 years of production, is considered new. Banks are willing to finance the purchase of a new car. The entire procedure of five consecutive stages will take a matter of days or hours, depending on the type of loan:

• In the salon we choose the model we like;
• We conclude purchase and sale contracts and insurance;
• We go through the loan application procedure and sign a collateral agreement;
• We transfer money to the car dealer’s account;
• We pick up your car using the acceptance certificate.

If the goal is a loan to purchase a car from a private person, then an intermediary – a legal entity – will be required. There will be additional stages in the transaction related to the need to hand over the car to a specialized automobile consignment store before purchase. A car dealership can play its role.

Advantages of transactions through a bank and a car dealership

If at this stage only the lowest rate is important, then directly contacting a credit institution will allow you to get a loan at a 1-1.5% lower interest rate, but in combination with expanded requirements for the package of documents and, possibly, with a larger down payment.

Car dealerships usually cooperate with several banks. If you search patiently, you can find promotions during which car dealers offer certain brands on credit at a rate 3-5% lower than usual. No bank can offer such conditions. The only pity is that such actions are rare.

Those who are impatient and thrifty can take advantage of express loans and loans without insurance from banks. The former save time, the latter save money. But. If you look closely at the conditions, the benefit received does not look so attractive.

Due to the increased risk on the part of the bank (the borrower's solvency is checked superficially), the bank increases the interest rate from the standard by 0.5-2%. Also, the initial deposit requirement increases by 10-20%. The maximum loan amount and repayment period may be reduced.

If you don’t have time to collect documents confirming solvency, you can calculate the amount of overpayment.

Car loan insurance

However, cars break down, suffer in accidents, and are stolen. Therefore, many credit institutions require compulsory CASCO insurance. An insurance policy provides benefits to both the bank and the new car owner. If the car is damaged, the car owner receives payments for repairs. If after an accident the car cannot be restored, then the insurance company will pay part of the outstanding debt.

The disadvantage is that the lender often strongly recommends an insurance company with suboptimal terms. It comes down to statements from bank representatives about the possibility of signing an agreement only if there is insurance from a partner company. The legislation of the Russian Federation stipulates the consumer’s right to choose a company for CASCO insurance. Knowing your rights will help you save on insurance.

You should not hastily reject a recommended insurance company. Preview competitors' offers. In fact, the conditions may turn out to be not only competitive, but also better. Some banks include insurance payments in the loan body, but this is often combined with an increase in the down payment.

A group of banks provide a loan without issuing a mandatory insurance policy. The only requirement is the presence of 30% of the cost of the purchased car and the annual percentage increases by 5% (18.5% versus 13.5% with insurance).

It should be borne in mind that car repairs without insurance will fall entirely on the shoulders of the owner. The dubious benefit of saving money by refusing to take out an insurance policy for a credit car can result in significant financial losses later.

If the buyer does not have the funds for insurance, the bank may offer a loan that includes payment for insurance. The loan amount may include payment for CASCO and MTPL for the entire loan term or only for one year. Banks usually provide such an opportunity with an increase in the down payment by 10%.

"Interest-free loan

You should be careful when entering into a free loan agreement with terms similar to a traditional loan. Any trade must bring benefit to someone. After signing the installment plan, the car does not belong to the buyer. Until full settlement, the car is the property of the creditor. Any minimal violation of the terms of the contract may serve as a reason to take the car away from the borrower.

An official dealer can provide such a loan for a car without mileage. In this case, the amount of the down payment can reach up to 30-40%. The compulsory insurance rate is also usually overestimated by 2-3%.

An attractive free car loan from the outside turns out to be far from a fairy tale when checked. If you have not yet decided on an installment plan, then consider installment plans last.

Buy-back system

• The first is subject to monthly repayment in equal parts according to the annuity scheme;
• There are additional options for extinguishing the second.

When concluding such an agreement, the dealer usually clearly states the requirements for the returned vehicle. If any condition is violated, the dealer has the right not to buy the car.

The borrower, if he does not want to part with his car, has the right to pay the entire remaining amount.

With this form of loan, deferred debt can reach 20-50%, monthly payments are less than with a car loan with basic conditions. However, interest costs are higher, since in a standard loan they decrease as the remaining amount decreases, while in a buy-back system the payment amount remains the same until the last month.

Such a car loan system is attractive for those who constantly change cars. Using this system, only the purchase of foreign cars is available and not in all car dealerships.

• Objectively evaluate your financial capabilities, decide on the maximum amount that you are willing to transfer monthly to pay off your debt;
• Study all available sources of information about the terms of loans provided: bank programs, promotions and offers from car dealerships. Before making a final decision on concluding a transaction, you need to carefully study the maximum number of offers on the market. The more information you have, the more suitable offer you will choose;
• You should first calculate the cost of drawing up a loan agreement. It includes: down payment, costs of issuing funds, insurance payment, unforeseen expenses;
• When concluding a contract, sections written in fine detail deserve special attention. If there are points that you do not understand, do not sign the documents until the unclear points are clarified. It is better to delay the conclusion of the deal a little, than to bite your elbows for years.

Video about how to avoid falling into the clutches of scammers when applying for a car loan:

Just a few years ago, the Russian market for financial VIP services was a pale imitation of the European one. But now our banks have moved from simple service in a separate room with expensive furniture to really interesting offers. First of all, this is a guarantee of anonymity, asset protection and personal conditions for the client.

Good advice

Financial pyramids take advantage of the desire to make money quickly, but in the end the person loses his contribution. Many do not even try to return lost funds, believing that it is useless. But you shouldn’t sit idly by - active actions by investors help stop criminal activity and get your money back.

Good advice

How to increase your salary using an individual salary project

Slavery in Russia was abolished in 1861, and “wage slavery” in 2015. What has changed since then and how do banks attract salary clients who have gone free? We'll tell you about the most interesting offers: interest on the balance, cashback, preferential loans and VIP privileges.

For legal entities

Acquiring VTB

The choice of bank to connect acquiring is dictated by the needs of sellers for available functionality, the amount of launch and maintenance costs. After reading this article, you will learn about the features of VTB acquiring, tariffs, and the procedure for connecting it.

• Financial results

  The volume of car loans at Zenit Bank increased 5 times

  In January-September 2019, Zenit Bank managed to increase the volume of car loans 5 times. In total, during the reporting period, the financial structure issued about 2,500 loans for the purchase of cars with a total volume of 2.3 billion rubles. The main driver of growth for Zenit was the expansion of the geographical presence in the car lending segment. In 9 months

  23 Oct 2019

• New Product

  UniCredit Bank launched 3 car loan programs

  UniCredit Bank has relaunched the Prime car loan service, designed for those wishing to purchase a premium-class car worth over 2.5 million rubles. The minimum rate under the program is 9.9% per annum, the down payment is at least 10% of the price of the car, the term lending – up to 7 years. Two other car loan programs bank

  18 Oct 2019

• Changes in rates

  Energobank revised rates on retail car loans

  Energobank has changed the rates for basic car loan programs. As part of the AutoPremium service, a loan can now be issued at a rate of 9.9% per annum. Borrowers must pay at least 30% of the cost of the car from their own funds. Registration of a motor hull insurance agreement and life insurance coverage for the client is not required. You can do without

  16 Oct 2019

• Financial results

  Uralsib increased the volume of car loans by almost 2 times

  In April-June of this year, Uralsib increased the volume of car loans by 80% compared to the indicators of the second quarter of 2018. Over the course of 3 months, employees of the financial structure issued about 3,800 loans for the purchase of vehicles for a total amount of 3 billion rubles. The average size of a car loan over the year increased by 15% - up to 800 thousand rubles. Uralsib

  05 Aug 2019

• Financial results

  Rusfinance Bank issued a record volume of car loans

  In April of this year, Rusfinance Bank provided clients with more than 10 billion rubles for the purchase of vehicles. The indicator increased 2.5 times compared to April 2018 data. The volume of car loans issued by the bank reached a historical monthly maximum for the entire period of operation of the financial structure. According to Rusfinance Bank, positive

  May 15, 2019

• Financial results

  Sovcombank is actively expanding its car loan portfolio

  At the end of last year, Sovcombank increased its car loan portfolio by almost a third – to 69 billion rubles. According to the Frank Research Group agency, this is the best market dynamics for the reporting period. At the beginning of 2019, Sovcombank’s market share in the car lending segment reached 8%. The share increase also turned out to be the most significant among the 5 largest

  14 Feb 2019

• Financial results

  The volume of Rusfinance Bank's car loan portfolio exceeded 90 billion rubles

  At the beginning of July of this year, the volume of Rusfinance Bank’s car loan portfolio amounted to almost 91 billion rubles (+11% over 12 months). These are record data for the last 10 years. According to representatives of the credit structure, a significant increase in the financial indicator was achieved due to active work in the field of state programs for preferential car loans. Also

  12 Oct 2018

• Avers Bank offers a preferential car loan

  7% per annum - this is the rate at which Avers Bank offers a preferential loan for the purchase of a car. The maximum loan size is 1 million 450 thousand rubles. To obtain a preferential loan, it is necessary to conclude a voluntary car insurance agreement and an agreement on insurance protection for the life and health of the borrower. Agreement

  July 10, 2017

Those who do not have their own funds to buy a car outright can take out a car loan without a down payment. Bank programs take into account various offers from vehicle sellers. So, you can choose used or new cars on credit. With the help of our financial portal, you will find a profitable offer for yourself quickly and effortlessly.

Various car loan programs help bank clients use a vehicle before they can save the necessary amount for the purchase. In 2019, many banks offer the opportunity to purchase a car on credit (Moscow’s offer in this regard is no different from other regions of Russia). It is more important to determine the organization that will offer optimal conditions for you. Finding the best car loan in 2019 is not always easy. To avoid wasting time searching on the Internet, use our financial portal.

Vyberu.ru will help you take out a car loan without a down payment on acceptable terms. Use the online search engine (located in the upper left part of the screen) and set the basic conditions of the car loan:

• size,
• payment term,
• currency.

To determine a profitable car loan - 2019, also check additional parameters:

• availability of collateral and surety,
• insurance conditions,
• Are you interested in used or new cars on credit?
• application review period,
• need to verify income.

In addition, you can use the quick search. For example, if you are planning to buy a car on credit without a down payment, select the appropriate item in the menu below. The program will show you only those options that match your request.

By comparing the conditions of different banks, you can easily determine the optimal program to buy a car on credit without a down payment. The range of offers may differ for each financial institution. You can buy a new car on credit or choose a used vehicle.

On the Vyberu.ru portal you will find complete information on car loans in Moscow. We constantly publish offers from leading Russian banks. The information will help you take out a loan to buy a car on the most favorable terms. Currently, it contains information on 81 banks that provide money to buy a car on credit. The number of offers changes periodically. The total number of programs for this type reaches 607. They all differ in their parameters - interest rate, amount of borrowed funds, repayment period, etc. By comparing the conditions of different car loans in Moscow, you will find the most suitable programs in different banks. Using the bank ratings, it is easy to determine the most reliable of the selected financial institutions in order to buy a new car on credit on favorable terms. And using a special calculator, it will be easy to calculate the financial burden on your budget and understand whether this or that offer is suitable for you. After this, you will be able to make an informed decision about which car loan in Moscow will be the most profitable for you.

Today, banking institutions and car dealerships exist in beneficial cooperation, providing car loans to those customers who have decided to buy a car. According to current legislation, only banks can provide car loans. For official dealers, this cooperation becomes an excellent opportunity to increase their sales and receive an additional percentage of the cars sold.

Conditions for car loans in 2018

For 2018, conditions for car loans are quite attractive from most leading banks. Cooperation with car dealerships implies a number of programs through which the applicant can buy the car he likes. But the question of how profitable these programs are should be considered separately.

Today, banks provide targeted car loan programs with reduced interest rates, preferential interest-free car loans, and various promotional loans for certain brands and models of cars. All this is done in close cooperation with car dealerships and each party receives its own benefits.

The main conditions of car loans are as follows:

• having a passport with Russian citizenship, as well as permanent registration at the place where the car loan was issued or in the region where the bank operates;
• a second document that confirms personal data, most often a driver’s license;
• income certificate and a copy of the work record officially confirmed by the employer.

The last point is not mandatory; many car dealerships are ready to issue a car loan with just two documents. However, if we are talking specifically about the bank’s program, then confirmation of income will become an opportunity to reduce the interest rate.

To get a profitable car loan, you should also take care of the down payment. Quite a few banks are ready to consider applications for which the funds for the purchase of a car are fully provided by the bank. Typically, the down payment ranges from 10-20%; the higher its share, the more favorable the interest rate will be.

Which car loan is the most profitable?

Car dealerships offer each of their car loan programs as beneficial. However, it is worth understanding that not a single financial organization will miss an opportunity to benefit. Otherwise, it is no longer financial, but charitable. In this vein, you can consider individual car loan programs in more detail.

The minimum interest rate for a car loan at a car dealership is possible if the client fully satisfies the requirements. That is, it provides a down payment, confirms its solvency, and provides CASCO insurance. Such a client benefits from his reliability, and therefore a car loan can be provided on minimal terms.

If you refuse car insurance, fail to make a down payment and provide only two documents, you can only get a car loan in some banks at an inflated interest rate. Car dealerships usually refuse in such cases.

A preferential interest-free car loan also has its own nuances. Usually it is transferred directly to the bank under a factoring scheme. To obtain benefits, the car dealership increases the cost of the car, which means that the client overpays in any case. CASCO insurance will also be required, often in those companies with which there are agreements. The insurance percentage is often too high.

There is also a state program that allows you to get a car loan at a reduced interest rate. In this case, the state takes on part of the costs by providing subsidies for car loans.

Often, car dealerships do not provide ownership of the purchased car until the car loan is fully repaid. You should be careful with this point.

Comparison of consumer loans and car loans in 2018

An increase in the interest rate on a car loan creates situations where it becomes more profitable to take out a consumer loan. It has its advantages compared to car loans:

• there is no need to make a down payment;
• CASCO insurance is also no longer necessary;
• the purchased car will not be listed as collateral.

At the same time, the interest rate on a consumer loan may well be at the same level as the interest rate on a car loan at a car dealership.

Is it worth taking out a car loan at a car dealership - expert opinion

Opinions and reviews of experts on the question of whether it is worth taking out a car loan at a car dealership vary greatly. On the one hand, experts agree that this is a convenient opportunity to make a purchase comfortably without unnecessary hassle. But there are so many nuances in this issue that the advantage of car loans based on reviews becomes questionable.

Car dealerships cooperate with a narrow range of banks and banking programs. Accordingly, you will have to register the car on their terms, and they are not always loyal. Expert reviews recommend that you familiarize yourself with all offers in detail, compare and calculate the benefits. If necessary, seek advice from a financial specialist.

Moreover, there are many banks that approve a loan and provide time to choose a car at different car dealerships.

When considering the possibility of purchasing a car, many of us ask ourselves what is more profitable: a car loan or a consumer loan, which option is better to choose, which has more positive than negative sides.

Car loan is convenient

Statistics speak in favor of the first one - most potential car owners today turn to widespread car loan programs when buying a car. And this is quite justified, because the most important advantage of such a loan is the opportunity to buy a car and use it immediately, and pay the money for it over time.

It is also advisable to use a car loan for those who already have a certain amount to purchase. The larger it is, the more favorable the repayment terms of the loan taken to add to the available funds up to the full cost of the car. Another advantage of such loan products is the possibility of purchasing with their help a more prestigious, high-quality, and therefore more expensive, model than you can afford only with your own savings.

Moreover, these funds in the process of accumulation will constantly depreciate due to inflation, while the size of payments on borrowed money is fixed. Therefore, there is no doubt about the positive answer to the question of whether a car loan is profitable, the average rate of which remains unchanged throughout the entire loan term.

We are looking for shortcomings

Unfortunately, in addition to its advantages, car loans also have their disadvantages. The most unpleasant of them is the need to spend on payments on it an amount significantly exceeding the price of the purchased car. This difference for the worse in domestic credit services with higher interest rates than those accepted in the global banking system is explained by the instability of the Russian currency.

And loans in dollars or euros will cost even more. But, on the other hand, it is better to get the desired car now, even with an overpayment in the future, than to wait a very long time until the required amount is collected to buy a car without the help of borrowed funds.

Another disadvantage of car loans is the difficulty of obtaining such a loan for people whose income does not reach the level set by banks, only if they have this level can they use this loan product. A number of financial institutions refuse to even discuss this possibility if the loan applicant’s earnings do not exceed 15 thousand rubles.

But at the same time, many banks are well aware that they should not focus their credit programs on that part of the population that, having a large income, can already afford to buy a car without any loans. Therefore, it is quite possible for a person with a low but stable income to find and take out the most profitable car loan with a minimum interest rate on it, however, to do this, he will have to consider the offers of at least ten banks.

Often, the conditions put forward by credit institutions apply not only to the borrower himself, but also to the purchased car. Car loans are the least profitable when buying a used car. This is due to the fact that the bank’s overhead costs for providing services are approximately the same, both in the case of purchasing a cheap car and a more expensive one, but the amount of the loan required for the purchase is significantly different. Therefore, credit institutions, which are also bound by cooperation agreements with dealer networks and large car dealerships, strive to do everything possible to ensure that customers give preference to new foreign cars.

Choosing the best offer

If you want to save money when buying a car, it is worth considering a number of points in order to know where, in which bank, it is profitable to take out a car loan with the most convenient repayment terms. Each bank, as a rule, offers several programs for such lending, intended for registration in the office of the institution, directly at the place of purchase of the car, and also specifically designed for the purchase of used or domestic cars. When choosing between them, you need to know that a large amount of funds required for a down payment will mean the most favorable interest rate on the loan, and the minimum required documents, on the contrary, will affect its increase.

Also, when purchasing a car on credit, it is worth taking advantage of one of the current government programs to support the automobile industry. For example, if you already have a car older than 10 years, then by handing it over as part of the recycling program, you can receive a special certificate that provides a discount on the purchase of a new car.

Also, the lowest interest rate on car loans in banks (Sberbank, VTB-24 and a number of others) is available for loan offers participating in the state subsidy program for the purchase of domestically produced cars. Moreover, these include not only Russian brands, but also foreign cars, the assembly of which is carried out on the territory of the Russian Federation.

In addition to the interest rate of the loan itself, it is worth paying attention to some other features of car loans that can affect the amount of money it will cost to buy a car. Some financial institutions charge fees for processing an application or for early repayment of a loan.

Most loan programs require auto insurance from a company that is a partner of the bank, which also costs money. If a loan is offered without mandatory CASCO insurance, this automatically increases the interest rate on the loan. In any case, preference should be given to an already proven bank with a good reputation.