Features of a soft loan for buying a car

Surely everyone knows that at present the car can be borrowed . But not everyone knows the different types of lending , including government. A soft loan for a car has its own objective strengths and weaknesses. Before you make such a deal, you should examine all the nuances, features, get into the essence of the program and determine whether you are suitable for the specified criteria. Unfortunately for many people, not everyone can count on benefits from the state when buying a vehicle. It has its own terms and limitations. If you meet the requirements, you can on fairly favorable terms, but still on credit, take a new car for yourself and your family.

How to get a soft loan to buy a car.

The meaning of the program

The financial situation of many Russians makes them look for more profitable solutions for purchasing a car. The demand for new cars has decreased significantly. The reasons for this were the financial crisis, the shortage of wages, reductions at work and the increase in prices for literally everything, including the cars themselves. In order to support its own domestic industry, in Russia it was decided to resume the once-functioning program of state lending through banks . This program makes it possible to save on the interest rate that financial institutions offer when buying cars on credit.

State loan is called soft loans issued for the purchase of cars imported and domestic production. In recent years, the demand for cars produced in Russia has fallen markedly. To increase sales, experts have developed a special program of preferential type. The main feature of preferential crediting (LC) is subsidizing by the state of the interest rate provided by the bank. That is, they so want to stimulate demand for cars that are produced and assembled in the territory of the Russian Federation. People can apply for a loan under such a program on more favorable terms, since the interest rate will be lower than usual.

For the first time about the preferential purchase of a car started talking in 2009. Then a special program was developed. But it came into force only in 2012. Then loans were issued on special conditions. It worked, as the popularity of cars assembled in Russia rapidly increased. Directly the LC program was introduced in 2015. Then it was extended to 2016, 2017, and decided not to stop in 2018. How much more such a system will work is not precisely known. But in total, they want to sell about 60 thousand cars on preferential terms.

If to compare with previous programs, now the interest rate of the bank on LC has decreased by 6.7%. Also decided to add a 10% discount on the total price of the car. It is a one-time. It offers a special program called the First Car. Here, soft loans are issued for the purchase of a car to people who have this first vehicle in their personal property. There is also a program for a family car. It applies to families where there are 2 or more children under the age of majority. There are such salons and banks that do not lower lending rates for new vehicles. Instead, they reduce the cost of the car itself. As the number of cars purchased under the state program is growing, many are interested in how to get such a discount and what is required for this.

Current conditions

There are a number of conditions on which the current preferential program for the purchase of a new vehicle is currently operating. They provide both families and lonely people. It all depends on what kind of loan program a particular buyer gets. As for the current conditions of a soft loan, they are as follows.

  1. There is a discount on the programs Family car and First car, which is 10% of the cost of the car. Another buyer can take a car, relying on the parent capital, if the family of 2 children or more.
  2. Under the program of preferential or state crediting get cars, the value of which does not exceed 1.45 million rubles. Previously, this figure was only 1 million rubles.
  3. In 2018, the down payment requirement is no longer valid. Previously, you had to pay about 20% of the price of the car. This was determined by banks and dealers.
  4. Under the category of preferential cars gets a car that was produced in the territory of the Russian Federation in 2016 – 2018. 
  5. A loan for the purchase of a vehicle with the condition of state support is issued only in national currency. Additionally, banks may require insurance for the health or life of the client.
  6. The term for issuing loan funds may not exceed 3 years. That is, it is necessary to pay in full for the purchased car for 3 years.
  7. The discount for all customers always remains fixed, and is 6.7%.
  8. The car must be missing registration records. The action of LC extends to individuals.
  9. The lending rate is calculated based on the difference between the initial rate and the state subsidy.
  10. Only urgent interest on the issued car loan can be reimbursed.
  11. Vehicles are bought only through authorized dealers and salons, which represent a particular automaker.
  12. In monetary terms, no compensation is given. That is, the state does not provide any returns and surcharges to borrowers directly.

It is important to note that the state undertakes to pay part of the first installment, giving a discount of 10% of the total cost. If the car is worth 1.4 million, with a deduction of 10%, 140 thousand rubles will come out. This is a solid amount that saves the buyer.

Under the terms of the LC, discounts cannot be summed up. Even if a person falls under the rules of the two programs, the purchase of a car can only be carried out on one of them. The main drawback of state car loans is a limited list of cars and their number.

Limited car selection

Buyers can not choose any car. A specific list is provided by the bank. Interestingly, banks allow customers on concessional lending to take only 1 car. But there are no points in the law regulating this. When you try to contact the bank for another state credit, in most cases, the client receives a refusal. Banks that are on the list of participants in the LC program have their own requirements and conditions. But they always rely on the conditions of the state program.

The main requirements of banks include:

  • car loans are issued only to those people who are officially citizens of the Russian Federation;
  • the age of the client should be from 21 to 65 years;
  • the credit history is carefully checked, and those who have a good one are in priority;
  • if the client is a woman, she should not have children under 6 months;
  • the client must have a permanent source of income;
  • the minimum down payment is 15% of the value of the purchased vehicle;
  • interest rates on loan funds are determined by the bank itself, reducing it by the size of a subsidy issued by the state;
  • Each bank independently determines the minimum amount of loans.

At the same time, the list of key conditions and requirements in all banks always looks almost identical. But sometimes there are additional requirements, because of what interest rates are slightly different. It depends on the:

  • car loan rates;
  • minimum loan term;
  • minimum amount;
  • requirements in the workplace and on the experience, etc.

If a person meets the stated requirements and is ready to fulfill all the conditions, he can expect to receive a fairly profitable loan, supported by the state.

Conditions of preferential car loans

Programs

Currently the main ones are:

  • preferential program First car;
  • program of preferential car loans Family car.

They should be considered in more detail in order to identify features and distinctive characteristics.

  1. The first car. This is a popular concessional lending program that allows you to purchase your first car on more favorable terms. LK affects those people who have not previously made any purchases of the vehicle. This account does not include motor vehicles. The client receives a discount of 10% to purchase a car. If the cost of a car reaches 1.45 million rubles, it receives a total discount of 145 thousand rubles. This benefit is given only 1 time in life. You can not get it again. In addition to the basic documents, you will need to submit a certificate from the traffic police .
  2. Family car. The program is extended to families in which there are 2 children or more who have not reached the age of majority. The 10% discount condition also applies here.

Which program to choose depends on the specific situation. Conditions differ not much, because there is no fundamental difference for people falling under the action of both programs.

List of available cars

Many people who are counting on LC, are interested in which cars fall under the program of preferential loans. After all, it was previously announced that the terms of the state loan can not buy any car. There are some nuances and limitations. But the current soft loans are noticeably more attractive than the previous ones. This is due to the fact that the list of cars has expanded considerably. Many automakers have opened their production in the territory of the Russian Federation. Due to this, they were also included in the state program. We offer you an indicative list of cars that fall under preferential car loans:

  • Chevrolet brand cars (Cobalt, Niva and Aveo);
  • some models from Citroen;
  • several trim levels Ford Focus;
  • Mitsubishi Lancer;
  • Mazda 3;
  • Kia Rio;
  • Hyundai Solaris;
  • Toyota Corolla;
  • Bogdan;
  • Lada family;
  • several models from Renault, Skoda, Peugeot and Opel;
  • ZAZ;
  • UAZ.

You can find out in more detail and specifically about which cars the program of preferential crediting will operate on the official website of the participating bank. The list of existing cars may be slightly different. But also get ready for the fact that most of the proposed cars will be provided only in the minimum equipment. It is hardly worth counting on top-end equipment.

Stages of registration

There are several basic steps that you need to go through in order to get a preferential auto loan. The client requires:

  1. Choose a car. It is important to consider the brand of the car, the year of its release, the cost and the size of the first installment. A loan can only be obtained if all these conditions are met.
  2. Find out the connection between your bank and car dealership. To do this, the easiest way to visit the official website of a financial institution. Many of them publish lists of dealers and salons with whom they work.
  3. Confirm your right to participate in the state car loan program. If you buy a family car, then be sure to submit birth certificates of children. For the first car getting program, you need to get a certificate from the car inspection and information on credit history. If you have a moped or motorcycle, it does not entitle the bank to deprive you of the stipulated discount of 10%.
  4. Choose a bank. Consider that different financial institutions have their own terms of car loans. Therefore, it is better to study the offers of different banks, determining for themselves the most profitable. Or one that cooperates with the car dealership where you want to take a certain car.
  5. Send an application with the necessary package of documents. What papers are required for preferential car loans, we describe below.
  6. If the client has been approved to issue a loan, then it is necessary to draw up the DCT, that is, the contract of sale between the parties.
  7. Make the first payment provided by the loan agreement.
  8. Put the vehicle on the account. This is done in any convenient for the client department of traffic police.
  9. Make a pledge and car insurance agreement. Acquired vehicle acts as collateral.
  10. Sign a loan agreement. The client needs to take a receipt from the car dealership, make a copy of the TCP, and also obtain consent from the spouse for loans.
  11. After passing through all these stages, credit funds are transferred to the seller’s bank account, that is, the car dealership where the vehicle is purchased.
  12. The car is transferred to the client.

To get a soft loan, contact the financial institution and the car dealership should be only the person to whom the car will be issued. In this case, the applicants receive the right to transfer the control of the vehicle to the authorized representatives. How long a package of documents will take place depends directly on the selected bank. It usually takes from 1 to 3 months. The application for a state car loan is considered within a few working days. Because the answer can be obtained quickly enough. Also, the speed of checking documents is influenced by the form of the loan that the applicant has chosen.

Required documents

It also has its differences, depending on the financial institution. But in fact the main part of the documents is identical. It is better to pre-clarify the list of papers that need to be prepared. To get a car under the state program of preferential car loans, it is usually necessary to prepare a package of documents consisting of:

  • applications for preferential state car loans;
  • a passport confirming the fact of the Russian citizenship;
  • driver’s license;
  • Information 2 personal income tax, which indicates the data on salary for the last 3 months of the applicant;
  • documents confirming official employment and working experience more than 1 year.

In the case of the last point, the client only needs to take a certified copy of his labor agreement, or a copy of the employment record. It is not necessary to present the originals of these documents. In order not to run home again and not to collect additional documents, take a look at the official website of the bank through which you are going to issue a car loan. In some cases, in addition to the main package of documents, an identification code, passport, marriage certificate, copies of the spouses’ passport, etc. are required.

Buying a car

Each financial institution reserves the right to determine the interest on payments to customers, as well as adjust the terms of car loans. Typically, the percentage is up to 20%. Bank sites usually have special online calculators. With their help, the client can independently calculate how much he will have to overpay on the loan and what the monthly installment will be. Do not forget that some financial institutions operate with a limited number of salons, and also do not issue loans for certain brands and models of vehicles.

The possibility of obtaining a loan without down payments

A feature of a car loan program without a down payment is that the applicant receives a loan with a minimum period and a high interest rate. With this scheme, the bank is trying to reduce the likelihood of under-receiving funds from customers. But with state support, you can significantly reduce the rate. The state gives guaranteed benefits and compensates for a 6.7% bank rate. Plus with the help of the state program of preferential car loans to get the first car or a family car a 10% discount is provided. Therefore, in any case, customers have to pay less than with a normal bank loan to buy a vehicle.

The most profitable rate

Everyone understands that consumers want to get the maximum benefit from government car loans. The most advantageous is the rate at which the client overpays the minimum amount under the loan agreement. It is important to take into account the fact that there are own benefits from automakers. They can be summed up with the state program, thereby obtaining a substantial benefit. Be sure to check with your bank if you can in the future, while the car is in credit, resell the car or change the insurance policy.

At the same time, experts advise not to make a choice based only on the favorable interest rate. You need to focus on the most suitable car. When you have decided on a car, visit different financial institutions and find out what conditions they will offer for a specific vehicle. After all, cars are bought not for one year. Currently, at a discounted rate, you can get a very good car loan. As practice shows, the program acts optimally in those situations where the client has a good initial amount.

Interest rate choice

If you want to buy a vehicle for cash, then you should not rely on concessional lending. The state program does not apply to such cases. That is, without a loan you can not get a discount of 10%. Although there is another option. From the state granted an impressive discount. Because sometimes it makes sense to abandon the purchase for cash, and get a loan. Then you can take it for a minimum period and with a maximum down payment. Overpayments will be minor, which will benefit the customer. Plus, the bank itself will receive more guarantees. This is a win-win deal.

When you buy a car on credit, regardless of the program chosen, it is always required to take into account the issue of additional costs. After all, the maintenance of the car also takes an impressive amount of funds.

Leave a Reply

Your email address will not be published. Required fields are marked *