Car loans: the pros and cons

Buy a car on credit - an obvious outlet for all those who want to have your own car, but do not have enough money to acquire it. About the benefits of buying a car on credit always debate. And the main reason for them - an overpayment and high interest rates. In fact, car loans eventually cost more than its real value. In addition, banks require bolshin6stvo purchase insurance hull (which is not a cheap pleasure) and, in some cases, to insure his life. As a result, the amount may well exceed the expected cost of a car on credit. But there is another side: if you decide not to buy a car on credit, then you need to save money on their own. This means that you will not be the happy owner of your own car for a few more months or even years, and your savings all the time will be ruthlessly eaten up by inflation. Given this, buy a car on credit, ultimately, will be profitable. Of course, the majority of loans granted for the purchase of new vehicles. But to buy a used car loan are also possible. Most of the banks working on such programs offer credit for cars not older than five years. This is due to the fact that the car is the same for the bank as collateral, which provides for the payment of the debt. When it comes to buying a used car on credit risks of banks increased in proportion to his age. It is related to defects arising from such cars, and with the rapid decline in the prices of cars with mileage. In other words, if you bought a car on credit and do not have coped with the payments, the bank has to sell it to repay debt. However, every year the operation of its car prices fall and, consequently, sales, for example, eight foreign-made cars a year or two after the loan was no longer cover the cost of the bank issuing the credit to buy it. As a rule, the best conditions for buying a car on credit offered for new models. This is due to the fact that their price is already high, and the need to attract customers. And the bank's risk is minimal in this case - the car is under warranty, provided a reliable and expensive hull, and the price at the time of its operation falls more slowly.