Car loan – before you take a loan
Are you buying a car with a loan? Remember that in addition to the installments, there will be additional costs for using the car – including fuel and insurance. It is important that the loan installment should not be too heavy a burden. Own car is certainly a very comfortable, but at the same time quite expensive option.
Banks may require different documents for your loan application. Make sure you have all the required documents for the bank. If more people submit a loan application, each co-borrower should submit a set of documents.
Car loan – what is worth knowing?
When examining the car loan application, the bank verifies the correctness of the documents and assesses the creditworthiness of the applicants. Even if you buy a vehicle at a bargain price, wait for a more favorable loan offer. The decision to grant a loan may take several days, but lower installments will pay for patience.
The bank should inform you about both positive and negative credit decision. If the decision is positive, the bank will inform you what are the next steps. If the decision is negative or is delayed – the bank will not return the submitted documents to you.
If the decision is negative, it is worth asking about the reasons for the refusal. Banks are required to respond, and this can be a valuable tip for you. It is good to check other offers and possibilities at the moment.
If you have already decided on the offer of a specific bank, the next step will be signing a loan agreement. Read the contract carefully before signing. Check that the data is correct and that the saved conditions are as you agreed. If something is wrong, ask immediately. Make sure you know when and how to pay back the loan.
Car loans – what should you remember?
In the event of a transfer of ownership, the vehicle remains the property of the Customer and the crediting bank is the co-owner of the vehicle – this condition continues until the loan is repaid in full. In the event of a registered pledge, the customer remains the owner of the vehicle and an entry is made in the vehicle registration certificate for the bank. The manner and time of starting a car loan is stipulated in the loan agreement – usually the payment is made directly to the purchase of the car.