It is much easier to get a cash loan. However, before granting a car loan, the bank will most often ask for documents such as a certificate of earnings. In many situations, own contribution is also required, which will ultimately depend on the cost of our car loan.

The classically real interest rate on cash loans

The classically real <a href=interest rate on cash loans” />

Expense:
The classically real interest rate on cash loans for any purpose ranges from 19-24% per annum. In the case of car loans, we can even find banks that grant such loans at 7% per annum. It’s amazing saving.

Repayment Time:
In the case of car loans, the statutory limit is 10 years, in the case of loans for any purpose this period may be significantly longer. It would seem that this point speaks in favor of a cash loan, but let’s see what will happen in the case of collateral for these two options.

Security forms:
In the case of cash loans, this is usually the insurance taken out in addition. We secure ourselves in a car loan in several possible ways – for example, through a blank promissory note or a registered pledge of our vehicle. On the one hand, this may increase the cost of credit, while on the other, it increases the security of our vehicle.

Car loan or leasing

Car loan or leasing

It should also be noted that in many cases, car loans can be obtained extremely easily through the transaction services of our banks, without necessarily presenting any documents. It’s enough that we are a regular customer of a given bank and use it regularly. This rule obviously applies to requests for smaller amounts. In the case of the larger ones, we will be condemned to show relevant documents.

This is also an important question to answer. Leasing may be a more expensive form of car financing, but for many it is a safer form, because at the time of financial problems, we give up leasing (and here minus), but this eliminates us from any rights to the car.