Loans could be taken for up to 10 years
Slowly the year is coming to an end, and here’s a look at the important changes that have been made to vehicle finance this year! In summary, 2009 marked the end of long-term, no-installment car loans.
Previously, there was a lot of advertising about 0% car loans, and loans could be taken for up to 10 years, and many people were irresponsibly burdening them. From the beginning of the year, all car loan calculators count on these terms. The purpose of the measure was thus to reduce the number of risky car loans and to stop the growth of loans to “bad debtors” from the bank’s point of view.
Financial situation of the clients
2009 marked the end of the 0% and / or long-term car loan facility, the deemed risky vehicle loans with a maturity of over 8 years and at least 20% of its own contribution. The financial situation of the clients is verified by applying for an income certificate (previously it could have been claimed without proof of income). Monthly repayments should be divided into equal (annuity) installments over the term. So the ideal car loan, the “reference construction”, looks like this:
- Duration: 1-8 years (12-96 months)
- self-sufficiency: minimum 20%
- the age of the car at the end of the term is up to 15 years
- commercial vehicle at the end of its life up to 12 years
- submission of proof of income
- annuity (even) repayment
In fact, the new regulation favors both the buyer / owner and the financing bank (most obviously the latter), since it prevents mass default on car loans, car repossessions – the goal is to get those who are likely to get car loans back. to pay.