According to statistics, the average cost of exports in Russia is 800 000 p. It should be stressed that this number may vary depending on the region, for example in Primorye, this amount can reach the value of one and a half million dollars. At first glance, it is clear that the average person can not earn such a year. As always, credit organizations come to the rescue. The population often asks: “Car loan or consumer loan, which is more advantageous?” In order to focus on a particular type of loan, it is necessary to identify the positive and negative aspects of the car loan and the unsecured loan.
Car loans: pros and cons
- Possibility of processing credit at the car dealer. Having a small amount of money available for a down payment on a loan, you can apply without leaving the dealership.
- Wide program of car loans. Almost all banks provide credit services for the purchase of an “iron horse”. Given that the bank automatically protects itself when applying for a loan by the presence of collateral, a credit approval decision is much more common than a consumer credit decision.
- Low interest rate. Unlike consumer loans, where the average loan interest rate is 20%, car loans in this regard stand at the level of mortgage interest rates – 11-12% per annum. General Motors’ statement earlier this year on the withdrawal of an American manufacturer from the Russian automotive industry due to a decline in population demand for manufactured products allowed other car developers to offer lucrative offers to consumers: unprecedented low interest rates on loans – 5-6 % or shortages. Although the economic situation in the country at this time wants the best, this time could not be more suitable for buying a car. Of course, with the question: “Car loan or consumer loan – which is better?”, Without a doubt, a loan aimed at buying a car benefits in this regard.
- Inability to sell the car to third parties. With auto loans, banks always take their deposit PTS remains in the bank until the loan repayment date. If the loan is not paid, the credit institution will take the car into ownership. But here you can go for some trick if you do not have the necessary funds for a monthly payment and you have stayed “with bare pockets”. To do this you need to go to the traffic police, write a TCP loss statement and after a while you get. Now you can sell the car and pay off the loan. But all these actions are illegal!
Consumer credit: pros and cons
- Use cash at your discretion. Given the non-target loan issued, the possibility of buying a used car at a lower cost appears, unlike a car loan where funds are only spent on the purchase of new cars, with a rare exception of second hand.
- Full disposal of your car. Of course, this is a clear plus when designing this type of loan. You can sell, change, promise your “friend” without breaking the law.
- Possibility to refuse to obtain a loan. Not all banks are ready to give you their money if there is no promise or security. In this respect, a car loan or a consumer loan – which is more advantageous? Of course, targeted purchase of a car from the bank.
- Significant interest rates. In practice, consumer credit rates are always higher than car loans.
Car Loan or Consumer Loan: Review
According to reviews, most Russian, People prefer to use a car loan, focusing on the fact that this type of loans is easier to get without unnecessarily “arguing”, and mentions that TCP remains in the bank’s mortgage.
But there are also those who strongly oppose the fact that when buying a car for consumer credit people have the option to use it at their discretion: sell, change, give, etc.
Car loan or consumer loan – which is better?
The imposition of sanctions, falling oil prices, has caused the exchange rate volatility of the dollars. In this regard, most banks in Russia have tightened the conditions for obtaining a consumer loan, making it almost impossible to obtain a low-income population. This practically did not affect the car loan, except for a slight increase in annual interest rates, but the conditions remained the same. After all, a car loan or a consumer loan – which is more convenient? In 2014, a car loan is a priority because it is easy to obtain and has low interest rates.
Best Bank “turns off” car loans
Best Bank is the largest representative of the state bank. Almost every family is served at this bank. Do not pass by and car loans. However, in view of the current situation in the country, since the end of 2014, Best Bank has refused car loans and transferred these functions to its subsidiary Lenders Bank. Therefore, the question of what is better to take – a car loan or a consumer loan at Best Bank remains irrelevant. If you are a regular customer of this bank, you can only rely on consumer loans.
Review of the former car loan system Best Bank
Forums often discussed a better car loan or consumer loan at Best Bank? The assessments showed that the majority of residents favored a car loan at this bank due to attractive interest rates compared to other financial institutions. However, part of the population is still waiting for a renewal of the car rental system from this bank.
What’s even better: a car loan or a consumer loan?
Answer to the question: Car loans or consumer loans – which is more advantageous? “It would be preferable to give preference to car loans. Because firstly, interest rates are always noticeably lower, secondly, third parties are almost never forced to get a loan, and thirdly, most banks offer bonus, special car loan programs. In times of crisis, it is sometimes possible to take a car on credit without an overpayment.