According to statistics, the average cost of cars in Russia comes to 800 000 dollars. It should be noted that this number may vary by region. In Primary, for example, this amount can reach one and a half million dollars. At first glance it is clear that the average person cannot earn such money for even a year.
As always, credit organizations come to the rescue. The population often asks the question: “Car loan or consumer loan, which is more profitable?”. To focus on a particular type of loan, the positive and negative sides of a car loan and an untied loan need to be identified.
Auto Loans: Pros and Cons
1. The ability to process a loan from a car dealership. With a small cash payment for the down payment of a loan, you can make an application without leaving the dealer.
2. Comprehensive car loan program. Almost all banks offer credit services for the purchase of the “iron horse”. Due to the fact that the bank automatically protects itself when a loan is applied for it, the decision to approve a loan is far more common than the decision to use a consumer loan.
3. Low interest rate In contrast to consumer loans, where the average interest rate on a loan is 20%, auto loans in this regard at the level of a mortgage – 11-12% per year.
General Motors’ statement earlier this year about the American manufacturer’s exit from the Russian auto industry due to a declining population demand for finished products has allowed developers of other cars to offer lucrative deals to consumers: unprecedented low interest rates on the loan – 5- 6 % lack of them at all.
Although the country’s economic situation wants the best at this time, it is the best way to buy a car. Of course with the question: “Car loan or consumer loan – which is better?”, Undoubtedly, a loan that aims to buy a car benefits in this regard.
4. The inability to sell the car to third parties. For car loans, banks always take your deposit on the car they bought, and the PTS stays in the bank until the day the loan is repaid. If you fail to pay a loan, the bank takes ownership of the vehicle.
But here you can try a trick if you don’t have the financial resources to make a monthly payment and you have “bare pockets” at your disposal. To do this, you have to go to the traffic police, write a statement about the loss of TCP and after a while you get it. Now you can sell the car and pay the loan. But all of these actions are illegal!
Consumer credit: advantages and disadvantages
- Use cash at your own discretion. Due to the non-target loan being issued, the option to buy a used car at a lower cost is shown, unlike a car loan, where funds are only spent on buying new cars, with the rare exception of used cars.
- Full disposal of your car. Of course, this is a key asset when designing this type of loan. You can sell, change, pledge your “friend” without breaking the law.
- The possibility of refusing a loan. Not all banks are ready to give you their money if there is no deposit or guarantee. Car Loans Or Consumer Loans – Which Is More Profitable? Of course, the target car can be bought from the bank.
- Significant interest rates. In practice, the interest rates for consumer loans are always higher than for car loans.
Car loan or consumer loan: reviews
According to reviews, the majority of Russian people prefer to take out auto loans. They focus on the fact that this type of lending is easier, without unnecessary “hassle”, and tolerates the fact that TCP remains committed to the bank.
But there are those who strictly defend themselves, guided by the fact that when buying a car with consumer credit, people have the opportunity to use it at their own discretion: sell, change, donate, and so on.
Car loan or consumer loan – which is better? 2014 as an indicator of financial instability
The imposition of sanctions, the drop in oil prices, instability in the ruble exchange rate caused. In this regard, the majority of banks across Russia have tightened the conditions for consumer credit purchases, making it practically impossible to maintain a low-income population.
The car loan had practically no effect on it, except for a slight increase in annual interest rates, and the conditions remained unchanged. So car loan or consumer loan – which is more profitable? In 2014 auto loans are primarily available because they are easy to obtain and offer low interest rates.
Reviews on the previous system of Wiser Savings Bank auto loans
Often did the forums discuss the topic of better car loans or consumer loans at Wiser Savings Bank? The ratings showed that the majority of the population preferred to borrow a car from this bank thanks to an attractive interest rate compared to other financial institutions. However, part of the population is still waiting for the bank’s car loan system to be restored.
What’s even better: car loan or consumer loan?
Answering the question: car loan or consumer loan – which is more profitable? “They offer bonus and special programs for car loans, and in times of crisis it is sometimes possible to take out a car loan without overpaying. Take out a consumer loan to save money on comprehensive insurance.