Take credit - update auto.

Information.

Take credit - update auto

December - successful time sit down on new auto. Banks give out auto credits for as much as possible favourable conditions: without an initial payment and with zero interest rate. It is tempting? Main thing - nobility, in what motor shows it is possible to buy auto on favourable terms.

In end of each year motor shows suit special actions for potential buyers. Reduce price of auto, in "makeweight" to car give additional complete sets of rubber or agree with banks about soft loans. Discounts and privileges at purchase of auto are especially appreciated by motorists. For this reason in Moscow 30 banks it there are more are ready to give credits on special - celebratory - conditions. And bankers recognize, that in end of year up to 75 - 80 % of given out autocredits are necessary on a share of super programs.

However to get loan simultaneously interest-free and without an initial payment it will not turn out. It is necessary to choose one of privileges. But both offers tempting.

Credit without an initial payment is favourable to people who have no accumulation, but possess stably high income. Interest rate for using such credit makes 9 - 11 % in currency or from 12 % in roubles. At registration of credit disposable commission - 100 - 200 dollars is usually paid to bank.

Interest-free loan is even more favourable. However under treaty provision motorist should lay out at once not less than 40 - 50 % from cost of car. Remained part of sum receive in interest-free installments for term of till three years.

However, if in interest-free credit there is no rate for using loan, it does not mean, that it absolutely free-of-charge. borrower should pay monthly commission for conducting loan account, disposable payment at registration of credit, and also to buy obligatory insurance of car which is transferred in mortgage to bank.

What price of interest-free credit? Basically considerable. As it was already marked, up to 200 dollars you will spend for lumpsum payment. Insurance policy of KACKO costs from 4 up to 15 % from cost of auto. Monthly commission for conducting loan account sometimes reaches 0,5 % from initial sum, but usually does not exceed 0,2 %. But close calculations all same show, that interest-free credits it is more favourable usual.

Banks and motor shows "cover" clients from attention of tax bodies. Matter is that according to Tax code to give out interest-free credits it is impossible. If rate under credit is less 9 % in currency or - for rouble credits - than less rate of refinancing (now it of 11 %) client receives material benefit in form of economy on percent which is assessed with 35 percent tax. To avoid this payment, banks make out standard credit contract with rate, for example, 10 % annual, and for a due sum a motor show give to client discount. As a result client pays to bank sum as for interest-free credit.

Auto loans for special conditions offer banks within a month-two. Similar actions are spent in December, a maximum - till February. As speak in motor shows, super actions allow sell motor vehicles made in leaving year. And motorists get new "an iron horse" on beneficial terms.

Source: Info Cash Loan (24.12.2006)

Information.