The procedure for applying for a car title loan is most often carried out in a car dealership. In exceptional cases – directly at the bank’s office. Information on how to obtain a car title loans in a particular bank can be found on the credit institution’s website or by calling its call centre.
When purchasing a car on credit, the buyer should pay attention to the following important points:
- As a rule, several banks are presented in a car dealership, ready to provide a loan for a car, therefore it is possible to choose from several offers the most suitable according to the conditions.
- It is wiser to discuss the specific details of the loan and apply accordingly after you have decided on the brands and models of cars that you think are most suitable for yourself. The fact is that lending conditions (rate, term, etc.) when buying cars from different manufacturers can be quite different.
- Apart from the make and model of the car, many important additional parameters can affect the level of the car title loans rate. Their potential borrower must agree with the bank representative accepting the application.
The buyer of the car, in particular, can indicate what documents he is ready to provide, and the bank representative, in turn, names the conditions that are mandatory for obtaining a loan (for example, issuing CASCO insurance for a car), as well as conditions that may affect the loan rate (for example, the borrower’s consent to a personal insurance policy).
- The term for a bank to decide on a loan may be different. For express loans – several hours. For standard programs – on average from one to three days. Usually, a bank employee contacts the client by phone and, in case of a positive decision, invites him to a car dealership for processing documents (in rare cases, to the office of a credit institution).
- After receiving the consent from the bank, the client only needs to contact the car dealership to conclude a car sale and purchase agreement. Next, the borrower makes an initial payment (if it is provided for by the terms of the agreement), draws up a CASCO insurance contract and concludes a loan agreement with the bank.
- It should be borne in mind that the buyer will be able to pick up the car from the dealership only after the amount of the loan is credited to the seller’s account.
car title loans: useful tips for borrowers
Today, many Russians become car owners, having issued a loan at the bank for the amount missing for the purchase. We propose to consider the main points of the process of buying a car on credit.
- First of all, decide what kind of car you want to buy – make, model, new or used, etc.
- Weigh your financial capabilities, calculate how much is not enough and what initial loan payment you can make, if necessary. As a rule, the higher the amount of the down payment, the lower the interest rate on the loan, the lower the loan amount, therefore, the lower the monthly payment and the overpayment for the entire loan term.
- Study and compare the terms of lending programs offered by banks. Of great importance is not only the size of the interest rate but also the loan term, the bank’s requirements for life and health insurance of the borrower, as well as insurance of the purchased vehicle. Pay attention not only to targeted loans (car title loans) but also to consumer loans.
For example, if you do not want to issue a car as a pledge and overpay for CASCO – and this is a considerable amount, or you buy a used car, a consumer loan will become a more profitable solution for you. And if you are considering a more economical option and the size of the interest rate is important, you should use a car loan.
At the same time, remember that when applying for a car loan, you will need to provide the car as a pledge to the bank, i.e. until you repay the loan, you will not be able, for example, to sell the car.
Some banks operate preferential car loan programs with very favourable interest rates – in Credit Ural Bank, for example, you can apply for a car title loans under the state program at rates of 7.3% per annum. Weigh the pros and cons”,
- During the consultation, ask a bank specialist to calculate the amount of the monthly payment. It should be comfortable for you and ideally no more than 40% of your income. Also, it is worth clarifying with the financial organization the conditions for partial or full early repayment of the loan.
- As a financial partner, choose a reliable bank with serious experience in the market. You should be wary of advertising of financial organizations offering large amounts of loans without confirming the borrower’s solvency, as well as providing “intermediary services” for obtaining “interest-free” loans, etc.