Car loan 0%. Zero auto loans from manufacturers - what's the catch? Under what conditions can funds be obtained

07.05.2022

In times of economic crisis, getting a loan to buy a car is quite difficult. Banks are raising rates and tightening requirements for borrowers. But the variety of car loan programs remains the same and car loans at 0%, which have been around for a long time, are still actively advertised by car dealerships. Why car dealerships? Yes, because it is in the dealership that you can get a car on credit, which does not imply interest.

But in such situations, it is wrong to assume that your lender will be a car dealership. If this is a car loan, then only the bank issues it, since car dealerships do not have permits and licenses to provide such services to the public. How does it happen? Let's take a closer look.

A loan for the purchase of personal vehicles at zero interest is the most common car loan, which implies the payment of not only the principal amount of the debt by the borrower, but also interest in full. At the same time, for the borrower himself, such a loan is interest-free for one simple reason: the discount on a car that a car dealership makes when selling a car is equal to the total amount of interest on the loan. Credit institutions, in cooperation with dealer centers, create joint programs in which neither the bank nor the dealer remains at a loss. At the same time, the borrower receives a car loan without interest.

So, when you walk into a car dealership and ask for interest-free car loans, the salesperson will show you a range of cars that are available through the program. If you find a suitable car among them, you can apply for a loan for it. Upon registration, the dealer will reduce the price of the car by an amount that will be equal to the amount of interest that you will have to pay during the term of the loan agreement. The bank will provide you with a discounted amount, that is, it will be less than the initial cost of the car.

You will receive a loan at the interest rate that is standardly set by the bank. In this case, the total amount together with the percentage overpayment for you will be the initial cost of the car. This means that if you forget about the discount that the dealer gave you, the car costs you exactly as much as it cost when you came to buy it. Thus, you remain in the black, as you do not overpay. The bank remains in the black due to the fact that it issued a standard loan and received its interest on it. And the dealer? What is the benefit of car loans at 0%? After all, reducing the cost of a car does not bring much profit, especially if it has been reduced to the purchase price.

Why does the car dealership stay in the black?

It is worth dwelling on this point in more detail. After all, a dealer, just like a bank, will never work at a loss. Then what kind of discounts and interest-free car loans can we talk about? Pay attention to the possible actions of a car dealership when creating such programs:

Initially, the markup on a car that falls under the action is made such that with a discount, its value becomes quite real and real. As a result, you get a car on credit without interest at an inflated price. And if you apply for it under the classic loan program in another salon, the total amount with an overpayment will be the same.

Car dealerships offer discounts on vehicles that don't sell well, have factory defects (of which buyers are rarely aware), are outdated, and simply take up space on the marketplace. It is beneficial for them to simply sell them, even at the purchase price, if only to make room for new models. Therefore, the choice of cars that are sold under the interest-free car loan program is sometimes not very large.

The maximum term of such car loans usually does not exceed one or two years, and to obtain them, an advance payment is required, the amount of which is at least 50% of the cost of the car. This suggests that the loan amount will be small, and due to the short loan term, the overpayment will be low. This means that the discount that the dealer makes is not too significant for him.

It is also worth adding that banks and car dealerships often cooperate with insurance companies that offer policies also at an inflated cost. As a rule, car loans at 0% are issued with compulsory CASCO insurance, while it cannot be included in the loan amount. You must purchase it with your own money. Here, pay attention to the insurance contract. If you pay 50% of the advance, then the insurance, by law, must be for the balance of the debt, that is, for the remaining 50%. Under the terms of such loans, you may be required to insure the car for 100% of its value, despite the fact that you have already paid 50%.

If you sign such an agreement, then half of your insurance premium will become additional income for the bank and car dealer. And since CASCO is not famous for being particularly cheap, a car dealership can easily compensate for the discount made for you at the expense of it. So, if you want to get an interest-free car loan, pay special attention to all contracts, and also check the cost of cars in other car dealerships in advance, for comparison.

The car loan market is expanding every year, contributing to increased competition among banking organizations and car dealerships. To stand out among the many companies, various marketing activities are used.

Among such companies, the offer to purchase a vehicle on a loan without any interest, with a minimum of time costs and a small package of documents has become popular.

Dear readers! The article talks about typical ways to solve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:

APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.

It's fast and FOR FREE!

The slogan “car loan at 0” sounds very attractive, but it should be borne in mind that such tempting phrases often hide not at all winning nuances.

General terms

If you decide to take a car loan, then before applying, you must familiarize yourself with the following conditions:

The purchased vehicle will be . Therefore, if you do not repay the debt, you will have to part with your car.
Mandatory car insurance. In addition, in the vast majority of cases, you will additionally need to purchase a CASCO policy and insure your own life.
The maximum loan repayment period is 5 years. Only in rare situations can banks extend up to 7 years. But only customers of partner car dealerships can count on this.
When car loans guarantors are not required. This feature is connected with the fact that the car acts as collateral. And when a penalty situation occurs, it is withdrawn and sold at the auction.
It is possible to purchase a vehicle with a minimum only at.

As regards the loan 0% , then in Russia such a program operates for a small number of manufacturers. It is supported by government sales promotion activities.

It should be noted that such conditions apply only to domestic vehicles with a carrying capacity not exceeding 3.5 tons and no more than 1 million rubles. In this case, the buyer is obliged to pay the minimum initial amount - 200 thousand rubles.

Such conditions can cause significant inconvenience when purchasing a car, so before buying, you should familiarize yourself with them in advance and carefully consider each item.

Requirements

When a client applies for an interest-free loan, a banking organization puts forward the following requirements:

Borrower must be at least 21 years old and not older 60 years. If he is at a sufficiently advanced age, then he needs to insure his life.
The amount of monthly payments should not exceed 40% from the permanent income of the borrower.
CASCO insurance must be obtained only from partners of the organization.
The minimum package must contain:
- driver's license;
- income statement;
- passport;
- certificate from the place of work.

It should be borne in mind that a loan without interest can bring huge amounts of penalties that exceed the amount of penalties for standard loans, and therefore banks can increase interest on servicing a credit account

How to calculate payouts

The amount of payments on a car loan depends on how the monthly commission is calculated.

In most cases, the commission depends on the total amount of the loan.

Payout calculation is simple:

you need to know the advance on the loan;
convert interest into money for the cost of the selected vehicle;
deduct the amount of the advance from the price of the car;
after that, we multiply the resulting number by the amount of the monthly commission;
as a result, we get the amount payable every month (excluding the body of the loan).

Let's analyze the calculation on a specific example. car cost - 20 thousand dollars, advance 10% , term - 4 years.

The body of the loan will be 18 thousand dollars=20-20*10%. The loan commission is 0,7% from the amount of the loan, therefore, it is necessary to pay per month $126=18*0.7%.

Now you need to divide the body of loans by the loan term in months - $375=18/48. By adding this amount to the monthly commission, you will receive the amount of payments on the loan without interest - $501=375+126.

In some options, the commission is determined by the balance of the loan. In this case, an independent calculation is not possible, so it is better to contact a specialist.

Payments for settlements by the second method will be less. But it should be borne in mind that the amount of monthly contributions will also include CASCO, OSAGO and life insurance. Which significantly increases the amount of payment.

Popular models for car loans at 0 percent for 3 years

Lada, Nissan and Hyundai

Nissan provides 0 percent interest for 3 years only on Terrano and Pathfinder models. The initial payment is 50% from the total cost of the car. That is, when applying for a loan on Terrano, you must pay 405.5 thousand rubles and the amount of CASCO insurance in cash.

Then the manufacturer will give you a loan with a zero interest rate for 2 or 3 years. As a result, you will have to pay the minimum 12.3 thousand rubles per month. This amount does not include additional insurance and maintenance.

Conditions for obtaining a zero loan from Lada have deteriorated markedly since July. And if earlier a car loan of 0 percent for 3 years could be obtained with a down payment from 50%, then at present such a loan can be issued only up to 12 months. But the company began to provide various additional discounts.

Hyundai has only recently launched a special offer for a zero loan for 3 years. But now this program is valid only for the Elegance package with a down payment. 50% . In addition, compulsory insurance is required.

Renault

For you, you can take a zero car loan for three years with a contribution of half the cost of the vehicle.

A loan under such a program is provided by two financial institutions: - the largest bank with foreign capital, and - a bank affiliated with Renault.

Although the loan is considered interest-free, but as a result of manipulations with the cost and discount, in fact, lending to customers is carried out with an interest rate 14,5% .

UAZ

The company provides an opportunity to purchase 2019 models with a cost of up to 1 million rubles at a zero interest rate with a term up to 3 years. The down payment is quite low compared to the average value and amounts to 20% from the value of the car.

Where else can you apply

real scheme

A 0% car loan is actually a standard loan where the borrower pays both principal and interest. It is considered zero due to the fact that the discount from the car dealership on the car is equal to the total amount of interest. But you get a loan from a bank at a standard rate.

Here, at first glance, your benefit and the benefit of a financial institution is obvious. But what is the advantage of such loans for car dealerships?

There are actually several reasons:

Vehicles are priced. And after that you get a discount. In this case, the discount amount is leveled by the initial price increase. As a result, it turns out that you pay a classic loan with all the ensuing interest.
This loan requires a down payment of 50% from the value of the car. Together with the fact that the maximum term for a loan does not exceed 5 years, the overpayment will be low. It turns out that the discount in this case is not so significant.
Banking organizations and car dealerships often cooperate with insurance companies. As a result of such an alliance, the latter offer policies at a significantly inflated price. As for a car loan with zero interest, in most cases insurance is mandatory.

Remarkably, the entire cost of the vehicle is required to be insured, even though you have already paid the initial 50% . As a result, by signing such an agreement, half of the contribution will go into the pockets of the financial and selling companies.

If you want to get an interest-free car loan, then pay more attention to all the documents, also analyze the market by comparing prices with competitive salons

What's the catch

Although the loan is called interest-free, it should be understood that in fact it is not zero.

The Civil Code of the Russian Federation states that when borrowing, the recipient must pay interest on the amount received. Even if they are minimal - hundredths or thousandths of a percent per year.
Costs will rise significantly due to the need for compulsory car insurance. Plus 6-8% per annum.
When registering, banking institutions charge a one-time commission - approximately 5% from the total amount.
Some banks may require life insurance - about 2% in year.
Sometimes financial institutions offer a vehicle loan service without the participation of a car dealership. But you should be careful, as such a function is usually accompanied by monthly commissions.
It is also worth considering that payments on a car loan depend on the value of deposits in the market. To determine the real interest rate, you need to multiply by 12 - a monthly commission, and add the resulting amount to the advertising rate.

As a result, a loan without interest is just a marketing event that allows you to visually reduce the cost of a loan.

If you have decided to purchase a car loan with a zero interest rate, then it will not be superfluous to familiarize yourself with some of the features of this type of loan:

You should evaluate your financial capabilities and determine whether you can pull the monthly payments. After all, it is much more difficult to terminate an agreement with a bank than to conclude one.
Before entering into an agreement, you should carefully study its terms. Banking organizations often hide additional fees. Therefore, it is worth paying attention to each clause of the agreement. If something is not clear, then contact a specialist for help.
Before signing the documents, do not be too lazy to check the total price of the car with all the accessories: music system, discs, alarm. The final cost of the vehicle can be very much higher than the initial price in the advertisement.
Insurance can significantly affect the cost of a loan. Therefore, be sure to consider several loan options. Insurance is not always necessary for the execution of the contract. In most cases, banks strongly impose this service without good reason.
If, due to unforeseen circumstances, you cannot pay the loan, then you should immediately contact a banking organization, write an application and attach evidence that confirms your insolvency.
As with any product, if you received a low-quality car, then if you prove this fact, you have the right to demand reimbursement of costs.

As a result, you should think several times before taking an interest-free loan. Indeed, in fact, such a loan has too many conventions and requirements, and their failure to comply can lead to significant costs.

Car loans involve borrowing money for a car. Among this type of banking services, a special place is occupied by loans for cars at 0% per annum. In fact, zero loans are installments, but they are positioned as a loan, and according to the law, a loan cannot be free. So, where can you expect trouble when applying for a zero loan?

Where are the percentages hiding?

For any bank, lending money is a way to make money, but how can a lender make money if the price of his goods is not set (the interest rate is zero)? However, the advertising zero interest rate, how does the rate exist, but where then do the banks "hide the cost of the loan"? The main thing for lenders is to attract customers so that they purchase this product, and where to place the interest is another matter.

When lending to borrowers to buy a car, banks require you to take out loan insurance. Lenders actively cooperate with insurers. In turn, the latter sell their products through banks, without the purchase of which lenders refuse to issue loans. It turns out that both organizations are closely interconnected and beneficial to each other. Insurer's products sold through a bank for car loans - policy, policy "Anti-theft" or "Damage" and other specific loans. The insurer sets a certain cost for his services, but who prevents the bank from making its own premium on this cost? Usually, clients pay insurance payments for more than one year, and if credit interest is added to them, then the bank can receive its income. At the same time, everyone is satisfied: the bank received income, the insurer sold his goods, and the borrower took a “free loan”.

Another way is discounts from the dealer on certain brands of cars. In this case, the bank announces a promotion: “A loan at 0% for a car of such and such a brand in this salon!” and the cost of the loan itself initially lies in the cost of the car. If the bank and the car manufacturer itself “cooperate”, then “auto banks” appear, but this does not mean that the borrower will be given a really free loan. Banks may charge fees. They can be either one-time or regular.

Other banking tricks

In order to minimize their risks, lenders, in addition to hiding interest on zero loans in other items of the borrower's credit costs, require a considerable down payment. For a car loan at 0%, the down payment usually reaches 30-40% of the price of the purchased car.

Lenders who issue loans at 0% also like to profit from the application of severe penalties. The method of changing credit conditions is also often used. The loan agreement contains a clause stating that if the borrower makes a delay of at least one day, the lender can unilaterally change the terms of the agreement. If the delay was allowed, then a zero loan immediately turns into an expensive one. The bank can set interest at 15 or more points and they will be valid until the end of the loan.

Considering that there are no free loans, banks sometimes arrange such transactions not as loans, but as factoring, having concluded an appropriate agreement with the borrower. A variant is possible when the bank creates a separate enterprise that lends to the borrower, and then assigns the right of debt to the bank, and the bank already allows the borrower to repay the loan in installments.

Car loan at 0% - a case from life

There was a bank in the vastness of Russia that created a "daughter" - an insurance company and cooperated with it. Issuing zero auto loans, he demanded from the borrower a full package of insurance from his "daughter". In turn, the prices for this package were inflated, and if we calculate the real overpayment of a car loan at 0% from this lender, then it was an order of magnitude more than the average overpayment for a similar loan in Russian banks, but the quality of the performance of their duties by the insurer wished better. Therefore, having decided to issue a zero loan, you need to once again think about whether it is worth doing it or not and from which lender to borrow money.

Surely, many citizens of the Russian Federation, who at least once thought about a car loan, have heard of an installment plan or a zero loan. Most of them, not believing such proposals, simply pass by, without even asking on what conditions such a loan can be obtained. Others issue car loans at 0% per annum and are happy with a new acquisition.

Of course, the citizens are right, and those who are apprehensive about such proposals and those who gladly accept them.

Car loans at 0% per year have a lot of positive aspects, the main of which is that the client will not pay interest on the issued loan, but at the same time there are a number of disadvantages, for example: a large advance, mandatory CASCO, life insurance, payment of various commissions, etc. d. What is a car loan at a zero rate, we will understand below.

Conditions

So, a car loan at 0% per year is provided by some banks and partner car dealerships of credit institutions. Installments can be issued not only for new cars, but also for used ones.

The conditions for such loans are as follows:

car loan is provided for 12-36 months;
initial advance - from 50-60% of the cost of the car;
mandatory purchase of CASCO and life and health insurance;
early repayment is allowed (but some banks may charge an additional fee for such an operation or automatically increase the interest rate);
additional commissions are borne by the borrower: a fee for opening and servicing a credit account, a monthly commission on a car loan, etc.

Design methods

Registration of a car in installments or at a zero rate car loan occurs according to the standard procedure:

the client fills out an application form, which the bank will analyze within a few hours and provide a response by phone;
the potential client submits personal documents to the bank, from which the loan officer will make photocopies in the presence of the client and return the originals;
the credit center will provide a final answer with all the conditions under the loan agreement;
the client will pick up a car in one of the bank's partner car dealerships, make an advance payment, pay insurance premiums, commissions for opening an account, and other payments, and then sign a loan agreement;
the borrower will receive the car immediately after the conclusion of the transaction.

Where to get?

Only a few banks offer zero auto loans or installments (see the table for current options).

You can conclude a deal directly at a partner car dealership of a credit institution, for example: the official LADA dealer Tekhinkom, Filat Avto, Obukhov, Avtocenter City, TorgMash, etc. or at a bank office.

Car loan at 0 percent for three years

A car loan at a zero rate for three years is offered by Genbank, which cooperates with a huge number of car dealerships and official dealers: UniMotors, Autocentre City, AKROS, Kaiseravto, Autotrade AG, etc.

Genbank, together with official dealers and partner car dealerships, makes an exclusive offer to its regular and new customers: an installment car loan for new and used vehicles.

The conditions for a car loan at 0% per year are given below:

car loan amount reaches 5 000 000 ;
crediting period - 12, 18, 24, 36 months;
down payment - at least 50% of the cost of the vehicle.

Requirements for borrowers

To get a car loan with a zero interest rate, the client must fulfill a number of requirements prescribed by the bank:

car loans are provided to citizens of the Russian Federation with permanent registration;
age limits of the client - 21-65 years;
positive credit history.

The client must have the funds to make an initial advance, in the amount of at least 50% of the cost of the car.

List of documents

To conclude a transaction, a potential borrower prepares several documents:

application form for a car loan at a zero rate;
passport;
a document of the client's choice: TIN, driver's license, military ID or foreign passport.

The Bank reserves the right to request other documents, for example:

if the client is married, then a civil passport of the spouse (s) will be required;
income statement;
document confirming employment;
documents confirming the existence of assets owned by the borrower;
document confirming education.

Amount you can count on

When applying for a car loan at 0% per year, the borrower must make an initial advance in the amount of 50-60% of the car's value.

The rest of the amount will be covered by a loan or an installment plan. Please note that the body of the loan may include an insurance contract.

The amount of this type of loan can reach 4,000,000 - 5,000,000 rubles.

How long do banks issue loans?

The lending period when concluding an installment plan or a zero car loan is always significantly reduced when compared with standard conditions, where a loan is provided up to 3-7 years.

Typically, the terms do not exceed one year, but you can find offers on the market, for example, Genbank, which is ready to lend to borrowers for up to three years.

The registration procedure itself does not take much time. The processing of the questionnaire and the execution of documents last no more than a few days.

How is repayment done?

The debt is paid monthly according to the received payment schedule.

You can pay in any of the following ways:

through the cash desk of a creditor bank or other credit institution;
through the services of the creditor bank: client-bank, terminal, ATM;
automatic transfer of funds from the borrower's card (this option is available when the borrower writes an application at the bank office);
automatic write-off through the accounting department from the place of work of the borrower (for this, the client writes an application at the place of work).

Early repayment is allowed, but the client must understand: banks automatically increase the interest rate (that is, the percentage can increase from 0 to 12% or more) or oblige the client to pay a commission for early termination of the contract.

Advantages and disadvantages

If the client can fulfill the conditions for obtaining a car loan at 0% per annum, then he will receive obvious benefits:

auto loan without interest;
registration with a small number of documents.

But do not forget about the pitfalls that the borrower will have to face when applying for and paying off a car loan at 0% per year:

a large down payment - from 50% of the cost of the car;
compulsory CASCO, life insurance;
additional fee for early termination of the loan agreement;
a short term car loan - no more than 1-3 years;
additional payments, commissions for servicing the loan agreement.

Having studied all the shortcomings, it is not necessary to say that it is not necessary to get a car loan without overpayments. In any case, additional fees, commissions, and insurances are borne by the client.

Car loan at 0% per annum

Competition in the car loan market is becoming more intense every day. Bankers, together with car dealerships, come up with various marketing moves to squeeze out their competitors.

Many banks today offer to purchase a car of domestic or foreign production without paying interest, unnecessary time costs and with a minimum package of documents.

The "interest-free installment plan" program allows you to purchase both a new foreign-made car and a domestic one in the showroom of an official dealer. Such a car loan program is especially convenient for those who already have an accumulated amount for a down payment.

IMB Bank experts argue that the main advantage of car loans at 0% per annum is the absence of overpayment on a car loan due to subsidizing the loan amount in salons participating in the program.

Natalya Bondareva, head of the car loan department at RosEvroBank, believes that the advantage of the car loan program at 0% per annum is obvious - no need to overpay interest on the loan. According to her, only borrowers who have a solid down payment can purchase a car using such an offer. "Such car loan programs are beneficial only to borrowers with a good level of income who purchase a new foreign car, which implies the purchase of expensive insurance," she notes.

The car loan program at 0% per annum is currently operating in Avangard banks, Impexbank, MMB, RosEvroBank, Sobinbank and the Retail Lending Company. In some banks, in order to get a loan for a car you like, it is necessary that the bank has an agreement with a car dealership.

According to Natalia Bondareva, under the interest-free installment car loan program, basically all banks impose standard requirements, as for classic car loans, namely: the age of the borrower is from 18 to 60 years (possibly over 60 years, subject to life insurance). "The amount of the monthly payment should not exceed 40% of the borrower's income. The terms of the "Loan at 0" program involve car insurance in an insurance company that is a partner of the bank," she says.

When choosing an interest-free loan, you need to take into account that the conditions of insurance, alas, are not always beneficial to customers. Unlike a classic car loan, the calculation of the insurance premium for CASCO will be made annually from the initial cost of the car, excluding depreciation. In addition, the disadvantage of such programs are large commissions for issuing a loan - 150-200 dollars. Data on banks are given in the table.

According to IMB experts, the effective interest rate depends on the cost of the car and the term of the loan, as well as on the insurance rate. Thus, in MMB, the client pays the bank the cost of the car every month in annuity payments, and also makes a lump sum payment in the form of a commission for arranging a loan, plus an insurance rate for 1 year.

In addition, the borrower must take into account that if the schedule established by the agreement is violated, the bank will levy fines. Valery Torkhov, deputy chairman of the board of Avangard Bank, explained that in the event of a borrower's breach of obligations, our bank charges interest at a rate of 12% and a fine of 1% of the amount of delay.

Today, car loan programs at 0% are among the most popular on the Russian market. According to experts, even despite the increased rates for insurance rates, the final overpayment on such loans is less than in other car loan programs.