Would you like to change to a new car model to feel more power and wind in your hair? One of the solutions that will bring you closer to fulfilling this dream is a car loan. Check what this type of financing is and when it is worth recommending.
Banks are outdoing each other in creating new solutions that are adapted to the dynamically changing market situation and consumer mentality. That is why classic car loans are slowly falling into oblivion and are usually replaced by leasing and car loans. One of the interesting solutions is also e.g. long-term car rental, for which the bank pays a monthly fee. When after a few years the car loses its value, you can change to a completely new model and start the rental period again.
The leasing and loan companies industry is not indebted to banks. I offer car loans or leasing loans, which are recommended to companies that are not VAT payers. These new products on the market and the high competition between banks, leasing companies and lenders are one of the reasons for the greater interest of Poles in new car brands. In 2019, as many as 555,609 new passenger cars were registered in Poland, and the most popular model was the Skoda Octavia, ahead of the Toyota Corolla ^ 1. What is a car loan? It is worth considering this when considering its three different forms. These will be: a classic loan for any purpose, a car leasing loan and a car loan
Many customers do not opt for car loans in banks due to a thorough analysis of credit history, consumer income and long waiting time for processing the application.
Instantaneous payment and installment loan for a car
The first option worth considering is the classic payday loans and installment loans. Is this a good way to get money to buy a new or used car? In the case of payday loans it is not the best idea because of the small amount to borrow. The situation is different with installment loans, thanks to which you can receive up to 60,000 dollars, which may be enough to buy an interesting and economical car. He proposes such an offer, including Infra company.
Loans granted in non-banking companies are granted for any purpose. That is why they are often not fully adapted to the needs of customers who want to buy their four wheels. It is worth using such financial assistance when for some reason it is not possible to take a leasing loan.
Car leasing loan
“What leasing loan and where is the best to take it?” Asks many Internet users by entering such phrases in the search engine. Before answering these questions, you should first define what a leasing loan really is. It is a kind of combination of two other financial products, i.e. leasing and loans. This solution was created in response to the needs of companies that paid for their activities on the basis of EU subsidies. It is also a very good option for companies that are not VAT payers.
It is worth remembering that the leasing loan can be granted only for fixed assets – it is not possible, for example, to renovate or decide on various investments. Leasing loans are granted not by banks, but by special leasing companies, which most often belong to banking corporations. Examples of such companies are: PKO Leasing or Getin Leasing.
Car leasing loan is one of the most popular products. Interestingly, it is also possible to receive such financing for agricultural, medical or IT equipment.
Car leasing loan – between loan and leasing
From a legal and financial perspective on car leasing loans, they are very close to loans in some respects.
- The car remains the property of the borrower, not the financing company, as is the case with classic leasing,
- Installments are calculated in a similar way. Their costs can only include interest, and VAT is not added to individual installments,
- Loan credit and loan burden BIK scoring more than leasing. Thus, the entrepreneur may have a bigger problem with incurring further liabilities in non-bank or leasing companies.
What makes a car leasing loan from a loan different is the amount of formalities. We will receive a leasing or leasing loan much faster and easier than a classic loan. However, it is worth remembering that in the case of a leasing loan there is no need to pay your own contribution, which is common practice when choosing a lease.
A car leasing loan can be taken for a much longer period than leasing. Usually leasing is for 2-3 years, while the leasing loan agreement can last for 8-10 years.
Car loan without BIK and KRD
Databases such as: BIK, KRD or ERiF are kept in order to easily verify a potential customer. In the thorough verification, there are banks which point by point analyze the credit history of each applicant. Non-bank and leasing companies approach these issues in a less restrictive way. It is also worth mentioning that a car loan without BIK and KRD has a higher interest rate. The reason is simple. In this way, loan companies must compensate themselves for the risk they undertake in connection with providing financing to a person with a poorly transparent credit history. A loan without checking the databases is usually also secured, e.g. in the form of a third party surety.
Companies most often grant leasing loans for proven car brands. This increases the chance of trouble-free use, and thus the repayment by the customer.
When discussing the issue of car loans, it is worth paying attention to financial products that are possible to obtain by pledging the car. In this case, to borrow funds, the customer must have four wheels. So this is not a car loan, but a car loan. Thanks to this, a non-banking company can offer us a very high amount. By pledging the car, we will get money, e.g. for its repair or renovation of the house or current consumption.
A car loan works on the basis of transferring 51% of its ownership to a non-bank company. This option is especially for those who earn money by owning a car. These may be e.g. taxi drivers or employees of transport companies.
By pledging the car you can get a much higher loan amount. The plus is also the fact that the covered car can be driven on!
Car loan – summary
If you are planning to buy an inexpensive new or used car, you should consider non-bank companies’ offers and decide on an installment loan for any purpose. It is often the only solution when leasing companies refused to cooperate with us. However, when we think about a larger and more expensive car for a company, it is best to be interested in a leasing loan. This option will allow you to become the owner of the car, which is not entitled to the customer who decided on traditional leasing. A car leasing loan is a small amount of formalities and high and obtainable amounts, thanks to which we will leave the salon with the car model we have always dreamed of.