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!

The content of the article:

Today, buying a car is becoming an increasingly commonplace event. For many families, a car becomes a necessity in everyday life. According to Autostat, almost every second car in Russia is purchased with borrowed funds. Car loans are becoming more accessible year after year.

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;

The potential borrower must have a constant and stable income. The salary presented in the supporting documents plays an important role. The planned monthly payment cannot exceed 50% of the income received. However, you can get a loan even with a small personal income by attracting a co-borrower (a close relative, for example, a spouse).

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

Today, if you try, you can get a loan for almost any car - new and used, domestic or imported. Various credit organizations provide loans for all types of transport. To avoid unpleasant surprises later, before concluding a transaction, you should carefully read all the details of the document being signed.

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 you plan to purchase a used car, the lender has additional requirements. Firstly, not every used car will be accepted by the bank as collateral. Among the traditional requirements for vehicles: mileage up to 100 thousand km, age at the time of completion of loan payments - up to 8 years. For imported cars, an additional requirement: confirmation of import into the country by an official dealership and the availability of documents for customs clearance.

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.

The bank considers the application within 2-3 days. The next three to four months is the approval period; if necessary, it can be extended. Usually, this requires bringing fresh documents confirming solvency - a certificate of income, etc.

Advantages of transactions through a bank and a car dealership

Modern technologies make it possible to obtain a loan at the place of purchase of the vehicle. This saves a lot of time and saves the buyer from additional running around the banks. However, most buyers of cars on credit prefer to apply directly to banks. The final decision is determined by the degree to which the borrower's needs are met.

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. It’s just a pity that such promotions 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 take a closer look at the conditions, the benefit received does not look so attractive.

Almost any car dealership offers the possibility of obtaining an express car loan. Half an hour or an hour after presenting two identification documents (one must be a passport), a loan is issued for the required amount, and you can go home in your own car.

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

Car lending is a collateral operation. The purchased car remains collateral until the borrowed amount is fully repaid. After registration with the traffic police, the vehicle passport is transferred to the bank for storage until the loan is repaid. If the debtor fails to properly fulfill his obligations, the car may be repossessed and sold to pay off the loan debt.

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

Following the loan without insurance, another ploy is “interest-free loans”. At its core, a car loan at 0% is an installment plan. Relatively recently, banks made similar offers. Nowadays, many car dealerships use this trick.

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

Still unusual is the car loan system with deferred repayment and the possibility of buy-back. In this case, the entire loan amount is divided into two parts:

• 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 a loan agreement with a dealer, a preliminary purchase and sale agreement is drawn up. After the end of the loan repayment, the borrower sells the vehicle to the dealer under the previously agreed conditions. The funds received are used to repay the loan debt.

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, but 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.

Car loans have a lot of subtleties and pitfalls. A few tips will help you go from applying for a loan to buying a car with a minimum of emotional and financial costs:

• 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’s better to delay the conclusion of the deal a little, than to bite your elbows for years.

Following these simple rules will allow you to enjoy your purchase. The right loans for you to buy a car!

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

Car loans are very popular in our country today. Most new cars are purchased with borrowed funds. But different situations can happen in life: they can be fired from work or any other disaster when solvency is lost.

A deadlock situation arises when you need to pay, but there is no money. The debt will grow and the situation will only get worse. But don't despair. Even in such a situation there may be a way out. Even a few.

Selling a car.

One way to avoid falling behind on your monthly payments is to sell your car. Of course, you don’t want to lose your car, but sometimes there is simply no other option.

If the loan is already old and the remaining debt obligations to the bank are small, the sale can be very profitable. You need to proceed as follows:

• Find a buyer who will buy a car from you for cash.
• You and the buyer come to the bank and pay off the balance of the debt. There are several ways to find out your loan debt, details.
• The banking institution issues you a vehicle passport, with which you go to the traffic police and re-register the car to the buyer.

One of the advantages of this method is that you can not only pay off the debt, but also stay in the black. The remaining funds can be used to solve other financial problems or buy a simpler car.

Unfortunately, not all buyers agree to purchase such a car and finding one can take time. Banks may also impose additional penalties for early repayment, that is, a moratorium.

For more information on how to sell a car purchased with borrowed funds, read this article.

Sale of car and loan.

It differs from the previous one in that not only the car, but also the debt obligation is transferred to the buyer. In this case, the appraiser usually reduces the value of the car by 30%, which is a plus for the buyer, but not very beneficial for the seller.

There may also be difficulties with re-issuing an insurance policy. But in general, this method can be used to sell a car fairly quickly.

For more information on how you can transfer your loan to another person, read this link.

Request for deferred payment.

If you are sure that after some time you will be able to pay your loan obligations again, then you can contact the bank with a request for a deferment.

It is advisable to indicate the maximum possible deferment period, since the lender will reduce it anyway. Financial institutions usually accommodate their clients halfway and allow them to defer payment. You will learn more about what a deferred payment is in this article.

Debt restructuring.

This is a reduction in annual interest on a current loan without renewing the contract. Banks are usually reluctant to make such transactions, but having a guarantor can help you. In this article we tell you how you can use this service.

Loan refinancing.

Unlike the previous method, here a new loan is issued at a lower interest rate, possibly even from another bank, and the funds received are used to pay off the old debt.

This way, the borrower can simply reduce his monthly payments. This method will not work if there is no money to pay at all. You will find more information about refinancing.

Don't pay.

What will happen if you just don’t pay? In this case, the debt will grow, the creditor will make an insistent request to repay the debt, perhaps the credit institution will turn to collection agencies, who will also bother you with requests to repay the debt.

In the end, the bank will take the case to court, which will end with your car being repossessed in favor of the banking institution, and the debt will be repaid from its sale. If the difference in debt and cost is positive, then it will not be returned to you. Read about what a bank can do if you don’t pay your debt.

Reading time: 3 minutes

Many people decide not to save money for a car, but to take out a car loan and immediately start using personal transport. But circumstances may turn out to be such that there is nothing to pay. Therefore, every driver should understand what will happen if you do not pay a car loan, because the consequences can be extremely unpleasant.

Responsibility of the parties

By signing the agreement, the bank and the borrower undertake mutual obligations.

Under contract

Do not forget that not only you, but also the bank has rights to the vehicle received on credit. In case of late payments, he can pick up the car at any time.

Usually this does not happen immediately, and the borrower is under the delusion that he can get away with non-payment.

Banks stick to their tactics. Their employees never tire of calling and sending notifications via SMS, mail and email reminding them of overdue payments. Moreover, they are persistent not only in relation to the borrower, but also in relation to the guarantor.

However, these are not the only car loan problems that drivers may have. Penalties for late payments are calculated daily. Each bank sets its size independently. Therefore, the longer the borrower delays resolving this issue, the more bogged down in debt he becomes.

In law

The obligations of the parties when concluding a loan agreement are regulated by the Civil Code of the Russian Federation. According to him, there are several options for liability. However, each of them involves property consequences for the person who does not pay the debt.

Repossession or sale of a car

When concluding an agreement with a borrower, the bank does not exclude the possibility of financial difficulties for the latter. Therefore, the terms of the loan agreement provide for some period of delay, which, as a rule, does not exceed 2-3 months. After which the creditor can sue for non-payment and also repossess the car.

However, banks take such measures in extreme cases. If the car loan is 2 months overdue, what can the bank do? The first step is to offer to sell the car and pay the amount. But it may happen that the proceeds are not enough to fully repay the loan, and in the end the borrower still remains a debtor, but without a car.

A more profitable option for the client is to sell the car along with a loan, but financial institutions are reluctant to do this: often the appraiser reduces the price of the product by an average of 30-40% of the market value. Only if the situation is completely hopeless does the bank agree to such actions in order to gain at least some amount.

How to negotiate

Don't give up prematurely. There is a way to avoid paying a car loan legally and start living in peace. If financial difficulties arise, you must immediately notify the bank about them. But don't refer to the abstract concept of crisis. It’s better to tell us about the specific reasons for the impossibility of payments: layoffs at work, delayed salaries, expensive treatment, accidents and other circumstances. However, remember that any reason must have evidence.

The bank will consider your case individually and offer one of the following options:

• credit holidays. This means that for a certain time you will only pay interest on the loan.
• stop accrual of interest. This option is relevant if you can name a specific deadline for full repayment of the debt;
• extension of the contract term, that is, the bank gives more time to pay the amount, accordingly reducing monthly payments.

If there are no funds

By temporarily freezing interest and extending the contract, a so-called car loan restructuring is carried out, which may also involve a reduction in interest on the loan. This is one of the best options when there is nothing to pay. Banks resort to such measures in exceptional cases. But if a financial institution serves a large client with a good reputation who can serve as your guarantor, they will agree to such a solution to the issue much faster.

If there are no funds to pay the bank, there is another way out. You can read about it in the article “”.

What does the statute of limitations mean?

The statute of limitations on a loan is the period during which the bank can file a lawsuit against the borrower for failure to fulfill obligations under the contract. As practice shows, the courts do not have a clear position in this regard, therefore, in the same situation, different authorities may make different decisions.

Most often, the statute of limitations for a car loan is taken to be 3 years, as in most other violations regulated by the Civil Code. The subtlety of the question is that there are three options for what date this period can be counted from.

Any loan, including a car loan, must be repaid in a timely manner and in full. Failure to pay the monthly installment may result in the imposition of penalties on the borrower and ultimately lead to the seizure of the collateral property - the car.

Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:

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What responsibility do the parties bear under a loan agreement and what should they do if temporary financial difficulties arise? Answers to these questions, as well as many others, can be found in this article.

What are the responsibilities of the parties?

Before starting a conversation about sanctions, you should understand what responsibility for the lender and the person being financed is provided for in a standard bank car loan agreement and existing Russian legislation.

Under contract

Both parties are responsible. It mainly concerns the main terms of the contract, such as:

• the amount of the car loan issued;
• loan terms;
• lending purposes;
• procedure for granting a loan;
• procedure and terms of debt payment;
• car loan security.

The lender is responsible for:

• provision of the full amount specified in the contract within the period specified in the document;
• maintaining the account of the credited person and timely writing off part of the debt after payment;
• safety of the vehicle provided as collateral.

If the lender fails to fulfill its obligations, the borrower has the right to unilaterally terminate the loan agreement.

The person being financed (borrower) must provide:

• carrying out payment of debt in accordance with the schedule presented by the creditor. For late payment, the borrower is subject to penalties, the amount of which is directly indicated in the main document - the loan agreement;

As a rule, penalties are calculated as a percentage of the remaining amount of the debt and are charged daily from the day following the late payment until the day the required amount is received in the creditor's account.

If the debt is not paid for a long time (on average, this period is 6 months and depends on the terms of the agreement provided by the bank), the creditor has the right to repossess the car purchased with borrowed funds. By selling this property, the bank covers the debt on the car loan;

• spending the received loan money specifically on the purchase of the specified car. A car loan belongs to the category of targeted loans, under the terms of which the funds received can be spent exclusively on specified purposes;

The person being credited is obliged, at the request of the bank, to provide all information about the expenditure of funds. Otherwise, the credit institution has the right to early claim from the person being credited all the funds provided, increased by the amount of interest.

• safety of collateral property. To do this, an additional CASCO car insurance policy is issued, which can cover all the bank’s risks in the event of unforeseen circumstances.
  All terms of the loan agreement must be strictly observed by both parties.

By law

Liability for non-fulfillment or incorrect fulfillment of obligations under loan agreements is also provided for by the Civil Code of the Russian Federation (Chapter 25).

In accordance with this document, the person being credited is obliged to pay a penalty or prove his innocence, and the circumstances proving his innocence do not include the lack of money.

The amount of penalties in this case must be established by agreement (clause 3). Failure to fulfill the obligations of a targeted loan, which is a car loan, is specified in the document.

According to the law, the creditor, if misuse of the provided funds is discovered, has the right to demand from the person being credited early repayment of the entire amount of the debt and interest.

The above document regulates the actions of the parties to the contract in the event of a pledge of property. The credited person is obliged to keep the collateral in proper form.

If necessary, insure it against the risks of loss or damage (). describes the possibility of selling the collateral property.

If such a situation occurs, the creditor must go to court, unless the pledge agreement expressly specifies a different procedure for confiscating the pledged item.

As a rule, such a point is not specified in car loan agreements, and, therefore, the banking institution has the right to seize the pledged car only by court decision.

This leads to the answer to the question “if you don’t pay the car loan, when will they take the car?” - only after receiving the appropriate court decision, at which the credited person must be present.

What to do if you can’t pay a car loan

If a borrower has financial difficulties and has nothing to pay for a car loan, that is, how not to pay a car loan legally, then he has three ways to solve the problem:

• without waiting for a delay to occur, contact the bank with a request to obtain a deferment on payments. To do this, you need to write a corresponding application;

If the person being loaned has an excellent credit history and has proven himself to be a responsible person, then most banks willingly agree to this procedure.

When submitting an application, you must maximize the period of the expected deferment, since the time to get to the bank will still be shortened. It is almost impossible to get a second deferment.

• carry out debt restructuring in a bank or with the help of another credit institution. In this case, the borrower receives a new loan on new (often more favorable) terms, but with the requirement to fully repay the previous debt with part of the funds;

This procedure is completely legal and is often carried out in most credit institutions. However, this will help solve problems only for a period of no more than 2 - 2.5 months.

• with the consent of the bank, sell the pledged car and use the funds to pay off the debt. This remedy should only be used in extreme cases.

How many months can you go without paying a car loan before repossessing your car?

On average, this takes about 8 months:

• within 1 month, the bank will charge penalties and independently try to force the borrower to pay the debt;
• then the debt will be transferred to a collection agency, which works with the credited person for another 6 months;
• After this, the credit institution will submit documents to the judicial authorities, where it takes about 1 more month to consider the case and make a decision.

When the court decision comes into force, the car will be seized by bailiffs.

In this case, the debtor will have to pay:

• the balance of the loan, including accrued interest;
• penalties for the entire period of delay;
• legal costs, which include state fees and payment for the work of bailiffs.

That is, if such a situation is allowed, the loan debt may increase several times.

Is it possible to negotiate with the bank?

In most cases, agreeing with the bank to provide a deferment on payments or so-called “credit holidays” is not a problem.

To do this, an application in the prescribed form is submitted to the bank, to which documents are attached confirming the impossibility of making a payment at the moment. For example, a certificate from work about a temporary delay in wages.

It is advisable to submit such an application in advance, that is, without allowing late payment. If the borrower regularly repaid the car loan, then most likely the lending institution will provide an installment plan for up to 6 months.

Consequences of delay and non-payment of debt