In our time, the credit boom is very terrible. After all, people are ready to take out loans with great pleasure for everything they can. Whether it's condoms or an airplane. For citizens, this is like an opportunity to take a bite of free cheese. Consider buying a car on credit, a very small part of lending.
For banks, the likelihood of staying afloat is as quickly as possible and more loans sold. That is why the process of obtaining a loan has been reduced to almost a minimum. Risk is any loan it doesn't matter whether you lend or borrow. In buying a car on credit, the lending scheme is built in the following way:
1. The client's desire to buy a car.
2. Down payment, which is 30% or more of the cost of the iron horse. Guarantors may also be required.
3. The result is the transfer to the car dealership of the amount required for the purchase.
4. Next, you will need to insure not yet your car. And the trick is that the insurance company is already indicated to you without the right to choose. Not for the bank, but for you, the tariffs will definitely be shocking. And you are obliged to draw up the policy.
5. Your next step is also clearly spelled out in the loan agreement. If you have not installed an alarm in a car dealership, then the insurance company will direct you to an alarm installer, of course, to a specific installer. And again, the cost will not please you. And the choice will be ghostly.
It's too late to bite your elbows, there is no turning back. You have imposed on yourself the responsibility for the early termination of the agreement to the bank. If you want to repay the loan ahead of schedule, it's lovely, the bank will receive a fine from you.
After all that has been passed, you are happy to start "your" car and are ready to drive. But by what right do you call the car “yours” without having any rights to it. Now look back, you paid about 70% of the total cost of the car (installation of an alarm and an insurance policy at exorbitant prices plus an initial payment), it is you who are responsible for this car, but in general it is not yours. Even the TCP is in the bank. Pay the last installment to the bank and you will be its beneficiary.
Consider the situation, the car and insurance have been reissued to you, the loan has been paid in full - everything went well. You are satisfied, despite the fact that the overpayment was about 50% of the cost of the car itself. Of course, insurers and installers, and, of course, the bank itself are satisfied. Everyone earned their money.