Buying a car
Buying a car is quite a significant decision and we often devote a lot of attention to this matter and time. Once we compare all the offers we are interested in and decide on one, the last decision should be made, are we buying in cash or in installments ?. The advantage of shopping in installments is undoubtedly the fact that we do not get rid of cash.
How much will be the monthly installment?
Sometimes, after recalculating the costs associated with the loan, it turns out that the monthly installments are more attractive because the remaining part of the funds can be invested favorably. However, this interest rate usually determines the decision on the purchasing option.
From a different perspective, buying a car for cash means getting rid of all the formalities that we have to face to get a car loan. As with applying for a cash loan, you usually need a company certificate confirming your employment and income.
It is different if we have our own contribution above 30% of the loan value, then there is the possibility of using the so-called simplified procedure, the bank relies on a statement of income. In a situation where we have no own contribution, the bank may require us to guarantee a loan from other people. This happens in the absence of loan collateral.
What are the requirements?
An additional requirement may also be a copy of the absence of a pledge on the car being purchased. If you buy a used car from a commission or dealer, the bank may require a pro-forma invoice.
The forms of car loan collateral are usually: registered pledge on the vehicle being bought, assignment of insurance policy to the bank as well as vehicle card deposit.
Using cash loans
Despite all these formalities, it is increasingly common for people who have the cash to decide to take out a loan. An important factor conditioning the decision is the financial situation of the person. There is, of course, another explanation for this situation.
People whose income comes from illegal sources of income decide to buy a car. The Tax Office would be interested in buying a car for cash. Buying a car for a loan also has a purely economic explanation.
It is worth buying in installments because the interest rate on the loan cannot change from day to day and inflation often increases in such situations and our car despite the interest rate is becoming cheaper.