You have decided to finally buy a car. But the money for the initial payment is not collected. It’s okay, you can buy a car on loan without a down payment, but you just need to understand that not every citizen in our country can count on a loan to buy a car without a down payment.
First, it is worth remembering that not all banks are ready to offer such a program.
Secondly, even if the loan institution issues a car loan without an advance payment, the loan history of the potential borrower must be flawless.
Thirdly, the client must document his solvency.
Today, the lack of funds for the initial payment for the purchase of a car will not become an obstacle to the realization of a dream. Some banks in the Russian Federation are ready to issue loans with zero installment.
And you can buy a car, both domestic and foreign production. Borrowers can also stay on a supported vehicle or purchase a new one at a car dealership.
Periods of car loans reach 5-7 years, premature closing of contracts on car loans is possible. Customers can also choose to conclude a agreement or not.
For car loans, banks minimize document packages, some loan institutions reduce them to 2-3 (passport, certificate of income, second identity document). Application by banks is processed from an hour to one day.
Ways of registration
To get a car on loan, a potential borrower must take the following steps:
- to find a loan institution in which you would like to be loaned (you can work out several options, then choose the most profitable loan);
submit an online application or go to the nearest branch and leave a written application;
- wait for a preliminary response, if the decision is in your favor, collect the necessary documents and bring to the bank for a final decision and preparation of documentation;
- sign documents, insure a car, get a vehicle for use.
Which bank to contact?
Below is a list of banks that are willing to provide loans to borrowers without an advance.
The conditions are basic and in the final version, for each client, they may differ slightly.
Car loans for used cars with no down payment
But It is worth noting that banks in such programs (zero initial payment) work only with their clients who have previously received loans or who have salary cards imitated by this loan institution.
Also a prerequisite for such lending is registration of and policies, the loan being purchased as a collateral for the loan.
Early repayment of the loan does not provide additional fees. The loan is granted for 5-7 years.
Depending on the year of release of the car and the country of the manufacturer, the other conditions are adjusted.
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Payments that a client makes on a car loan every month consist of: loan body, interest, bank commission, in case of delay – interest, which the borrower also pays.
We will not talk about commission in each bank, it is set at a certain fixed level, and does not depend on the amount of the transaction or the client’s solvency.
As for interest, the rate may increase or decrease depending on the borrower’s income, his loan rating, the status of the car (supported, new, domestic, foreign) and other parameters.
It should also be understood that car loans with zero installment are more expensive than loans for cars, where the contribution is at least 10-15% of the value of the vehicle.
To date, banks set a fee on auto loans with no down payment from 13.9-17.2% per annum.
Requirements for borrowers
Requirements for customers wishing to get a loan for a car without a down payment are tightened (if compared with lending with an advance).
Each bank registers with the main additional requirements:
- impeccable loan history;
- regular customer of the bank;
- a citizen of the Russian Federation;
Permanent registration in the village where the bank branch operates;
- age – from 21 (23) years;
Lending institutions can supplement or reduce the above list of requirements.
To get a car loan, a bank customer needs to prepare a small set of documents:
- application and application form;
- documents on legal income (certificate of employment, certificates from the bank on the availability of deposit accounts, other documents).
The bank may adjust the list of documents, for example, receiving wages through a loan institution, you can not submit an income statement.
Or vice versa, the bank may ask for additional documentation.
The period of car loans in all banks ranges from three to seven years. Terms depend on whether the customer acquires a new car or supported.
Very often, second-hand auto terms are reduced. Also takes into account the client’s solvency, his wishes.
The bank calculates the possible options and offers to the client. Bank employees emphasize that borrowers can repay car loan debts ahead of schedule.
Moreover, the majority of loan institutions do not request additional remuneration for such an operation.