Every year more and more cars appear on our roads. This type of transport has become an integral part of our lives. Many people can not imagine my life without a car. Having a car means a certain level of comfort. More information at labeurettenue.com
Therefore, any technical breakdown of the car or an accident is immediately reflected in the usual rhythm of the life of the motorist. Therefore, how to get a loan for car repairs, read the article.
In such cases, the owner of the car is in search of funds for its repair. Currently, not only the purchase, but also its repair is an expensive pleasure. Free cash is held by a few of our fellow citizens.
What to do in this case?
One of the most popular ways is the design of the loan, designed for auto repair.
To draw up a loan agreement you must follow several rules.
If motor vehicles suffered significant material damage, then you need to think about applying for a loan directly at a banking institution.
Some commercial banks have developed credit programs that are offered for car repairs. It should be noted that the interest rate on this type of loan is not very high. You can easily find loans at 20% per annum.
The loan agreement is made for at least one year.
The peculiarity of the contract is that the car is in the pledge of the banking institution, but the owner has the right to use the vehicle freely. Immediately after the repair, the owner of the car can sit at his wheel. But you should not forget about the obligations to pay the loan.
To draw up a loan agreement, the owner of the car must provide the bank employee with the original document, which confirms the identity, identification number, and documents on the ownership of vehicles. The loan is issued on the amount that is confirmed by the estimate.
The estimate is prepared by representatives of car service.
Features of the loan for auto repair
Lending for the repair of the vehicle has some peculiarities. According to banking rules, it is the financial institution that determines the list of automotive services that should be addressed to the owner of the car for its repair.
And as practice shows, the cost of repair work at such service stations will be significant.
The nature and purpose of the loan for car repairs
It is worth noting that this loan is targeted. Money can be spent only on the work indicated by the service station. Money is not given to the owner of the car on hand. The entire loan amount is transferred to the bank account of the company, which will repair the car.
Not all customers can agree to such terms of the loan agreement. In this case, the motorist can get a loan for the necessary needs. After that, the owner of the car can independently choose a company that will carry out the necessary repairs.
Then the borrower will face another problem. The interest rate on this type of loan is not less than 35%.
Another option for repairing a car on credit
To date, loans for the repair of the machine provide not only banks, but also directly automobile workshops, and even automobile pawnshops.
It should be noted that these organizations are most interested in the condition of the car. The state of finances of the owner of road transport fades into the background.
Enterprises do not conduct a customer solvency check. Therefore, to execute a loan agreement, you need to provide only a document confirming the identity and documents of ownership of the car.
What is different about getting a loan from a banking institution and car workshops or pawnshops?
Making a bank loan takes a long time. Sometimes it takes several days or even a week from the moment a loan agreement is signed until the moment the money is received.
Credit in the car shop is obtained for a considerable less time. One day is enough. So, the money can be obtained the next day after the signing of the necessary documents.
Of course, for this, representatives of the workshop or pawnshop must assess the extent of the damage caused to the car. In order to carry out the assessment, the vehicle owner must provide the vehicle.
The advantages of working directly with a car service is that in case of a shortage of cash, the organization provides the ability to quickly obtain a loan. It should be noted that the loan is provided for a short period of time.
Disadvantages of a similar credit scheme
But this lending scheme has some drawbacks. The car remains in the parking lot car service for a time until the borrower does not fully pay the loan. The car is a guarantee of payment of debt. Usually such loans are provided at significant interest rates.
The term of the contract is limited. As practice shows, it can be no more than one month.
Thus, repairing a car on credit is quite possible. But the option of lending is chosen independently. Both lending at banking institutions and car loans at car repair shops have advantages and disadvantages.