A car loan , otherwise known as a car loan, is intended for the purchase of a motor vehicle. In practice, this means that the bank borrows money for the purpose chosen by the client. In this way you can get funds for the purchase of a used and new vehicle – from the car dealership.
Car loans can also be used to buy vehicles such as:
- construction machinery
- motor boats
Where to go for a car loan?
You can apply for a car loan in various ways . We will submit the application:
- at a branch of a selected bank
- in the dealer’s salon
- at the financial intermediary
- on the commission
- via the Internet – via a bank credit platform, which also allows you to pre-estimate the amount due.
Do the make and year of the car matter for getting a loan?
When applying for a car loan, it is important to provide the vehicle make and year of manufacture. The bank may then accurately estimate the value of the means of transport that serves as collateral for the loan. It does not matter whether we buy a new model or choose a second-hand vehicle .
Many institutions offer a very attractive interest rate to those interested in a car loan . However, a lot depends on the age of the vehicle. In addition, some institutions finance the purchase of not very old vehicles, e.g. up to 12 years old.
Types of car loans
The customer has a choice of different models for repayment of the car loan . He can choose to:
- Standard loan with a monthly installment, which is granted for up to 10 years
- One-off loan in which 50 percent the customer pays the amount of financing in cash, and pays the other half after the agreed period, e.g. one year
- 60-per-loan loan, i.e. 60% cash payment the value of the car at the time of conclusion of the contract and 40 percent After a year
Usually, when financing in options 2 and 3, lenders do not charge interest, which significantly reduces the cost of buying a car.