A car loan is financial support that will help the customer finance the purchase of a vehicle. Undoubtedly, such an investment requires a lot of capital, and unfortunately not everyone has such a large amount of money from moment to moment. When the car is necessary for us to perform daily duties or travel to the workplace, then in the event of a serious fault there is no other way than to buy a new vehicle. How do you choose the right car loan? What is he about.
Car loan is a product offered by banks. Will be given to the customer who plans to buy a new vehicle. It can be not only a “passenger car”, but also any other means of transport, for example a motorcycle, scooter, caravan or truck. In addition, some banks also grant car loans for purposes related to business operations or a farm. Lenders reduce the risk of non-repayment by establishing a security on the item that the customer will finance from the money received.
The consequence of this solution is an attractive lower interest rate than in the case of a cash loan. Therefore, when buying a new car, it is worth using the offers intended for this purpose. However, will you always need protection in the form of a purchased item?
Car loans and security
Car loans are attractive financial support offered by banks for the purchase of a vehicle. However, before the customer decides to submit an application, they must have information about the car. After receiving a positive credit decision, you’ll need to provide your VIN. Without this, the money will not go to the applicant’s account. Why? One of the forms of security when applying for car loans is the expropriation of the vehicle. In this case, you can come across two solutions. First, the creditor has the right to require that the vehicle card be deposited. Secondly, it is possible to enter the bank in the registration certificate.
It is worth mentioning that the entry in the registration certificate is also a solution practiced by non-bank institutions.
However, you can also choose another form of security. It is not available from every lender, and sometimes it applies only from a certain limit – we are talking about the assignment of rights under the Autocasco (AC) policy. This solution is introduced by Santander Consumer Bank, while marking the inclusion of this option for car loans over PLN 30,000. Do car loans always need collateral? It turns out not. One example of such an offer is AutoCash from GetinBank. In this case, you do not need to enter the bank in the registration certificate or conclude AC insurance with the lender. In return, he requires his clients to provide proof of income.
Car loan calculator – loan amount and period
To date, we have not mentioned one of the most important issues, i.e. the amounts available for car loans. As you can guess, when financing such an investment, the maximum values of financial support will be higher than in the case of a cash loan. It all depends on the bank’s internal decisions, but the availability of amounts starts from several thousand zlotys and ends at several hundred. For example, BNP Paribas Bank Polska offers its clients financing up to PLN 500,000.
In turn, the loan period can be up to 10 years. It is worth stopping for a longer time when choosing car loan parameters, because this commitment will accompany us when settling the household budget in the near future. How to calculate the cost of financial support?
Car loan calculator – how to calculate the cost?
Banks provide a tool on their websites, which is a car loan calculator. To find out the cost of our commitment, you’ll need to complete some information. First, you need to know if the loan will be for a car, motorcycle, scooter or other vehicle. Then you need to analyze your home budget and determine the missing amount from it to finance your dream purchase. In addition, banks also grant loans for used ones. However, in this case the offer differs in interest. Therefore, it is worth considering the age of the vehicle in the calculator. The last element is information on the customer’s preferred loan period. After completing this information, a cost statement corresponding to the parameters will be generated. These will include information on the amount of the monthly installment, the nominal interest rate per year, the total cost of the loan and the amount to be repaid.
You cannot forget about the APRC. If the customer wants the cheapest offer, then it is worth paying attention to these values. The lower the APRC, the cheaper the car loan. However, please note that this applies to products with the same loan period and amount. If the collateral is a car or other vehicle, then the customer may have a chance for higher financial support.
MBank car loan – offer analysis
Let’s examine the specific offer now. One of the frequently selected offers is a car loan at mBank. Thanks to it, the customer can receive the necessary funds without any own payment. The interest rate on the loan is attractive and starts from 4.39% per annum. The maximum amount is PLN 450,000 gross, while the loan period is from 6 to 120 months. MBank car loan guarantees borrowers the opportunity to extend the repayment period for free or to settle their obligations in advance. An additional advantage of the offer is the possibility of receiving a 15% discount on the purchase of insurance online. The applicant may apply for amounts up to 125% of the vehicle value.
mBank car loan – how to apply?
An application for a car loan at mBank can be submitted both at the branch and during a telephone conversation and via the Internet. Before starting this process, it is necessary to prepare a valid ID card and other documents that you will be informed about when applying. These will also include confirmation of the loan collateral, i.e. assignment from the AC policy or transfer of ownership of the car. Then complete the short form with basic information about the vehicle, personal, financial or address information. After approving the application, go to the previously selected mBank or mFinanse Service Point. The last step is to transfer money to your account.
If you decide to submit an application at a branch, you can easily find the nearest branch on the bank’s website. In this situation, after going to the place, the adviser will explain the entire application process to you. In turn, submitting a phone application requires contacting the adviser via the helpline. You can also leave your contact details on the bank’s website and wait for the phone. When you choose this form of inference, you provide all the data to the adviser and he completes the application.