Last year the Czechs bought six hundred thousand used cars and about three hundred thousand new cars. Sellers hope this year to increase sales! But not everyone has a new or used car. Almost half of customers have to borrow it. There are many loans on the market.
I want to buy a car. One is already selected, it costs 250 thousand dollars, but where to take it? In cash I have a little over 50 thousand dollars. So I will choose credit or leasing. And I want to find it myself over the Internet.
All I need to do is to provide one credit card for my car loan
The bank will verify the other information itself. If I had an account with the bank I was applying for a loan, I could take out the loan quickly online and the money would land in a few tens of minutes.
The car will be registered in my name, I will have a big technician with me but I arrange my own motor insurance and accident insurance. I can repay this loan sooner and without charge. I do not pay anything for processing the loan, the advantage is that I can set the amount of the monthly installment free according to my own possibilities. The whole loan can be insured against default, monthly costs about 390 dollars.
If I happen to be not a bank client, I still arrange the loan over the Internet. The next day a courier arrives with me for signing. The bank then sends the money to your account within two days.
Lower installment, but the car is not mine – leasing
I can’t be tempted by the first offer, so I go through other offers.
The final payment and interest vary from bank to bank, depending on the creditworthiness of the requesting client. In order to process the loan you need a citizenship and driving license, a confirmation of the amount of income from the employer. You do not have to have a bank account.
The technical certificate of the car is deposited with the leasing company that will own the car. I will only be the vehicle operator. The accident insurance and motor third party insurance will help me to arrange it, but I can arrange it myself. The bank pays the seller directly. The contract may be issued free of charge.
I can repay this loan prematurely and pay up to one percent of the outstanding principal. I do not have to go to the bank personally because I will handle everything with the seller.
The installments are lower, but I will not be the owner of the car for four years.
Fabulous offer on the Internet
Loans to buy a car promise on the Internet and other banks, but it is not special loans to buy a car, but classic consumer loans. Calculators for calculating installments and interest rates can be found on each bank’s website.
Previously, buying a car was done through the use of a car bazaar to make decisions based on the amount of the installments, and all of them looked less at credit costs. Car dealerships recommended car loans not for the customer, but according to the commission they received. In recent years, people who want to buy a car are increasingly going to the bank to ask if they have a bargain loan.
The cost of credit is identified by the APRC, ie the annual percentage rate of charge.
What to look out for when renting a car or leasing
- Loan or leasing? The main advantage of consumer credit is that you become a car owner right away. When leasing, you become the owner of the car only after full payment. Leasing has the advantage of variable installments, is simple and affordable.
- A professional approach with companies you borrow. This should explain all the terms of the offer. The documentation must be clear and complete at the first hearing. Compare more offers than you decide and don’t take the first loan just because it should be the best!
- Beware of stolen cars. Because scams don’t even avoid selling cars. Therefore, carefully choose who you buy the car from. Authorized dealer of the brand is certainty.
- Higher installments or longer repayment periods. The difference is if you want to change your car every three years or keep it for another eight years. Do you have a low installment spread over a longer period or do you repay quickly?
- Higher / lower down payment. The leasing company requires the client to make a down payment to purchase the car. You have to pay 20% of the price of the car in advance. The higher the down payment will be at the beginning, the lower the installments will be. If you choose a lower down payment, you can use the remaining funds for something else.
- Insurance. Find out in advance whether your MTPL is included in regular installments. Some companies leave the MTPL to the client. The same applies in case of accident and other insurance. If you have insurance policies included in the lease price, you must arrange a new insurance with the end of the lease.
- Read the contract carefully. Please read the contract in detail before signing it. In case of any doubts, ask the seller and ask for a list of fees. Beware of additional changes to the Terms of Service, as charges may apply.