Acquiring a new or used car represents satisfying a need to move. Whether it’s to work, perform errands or go for a walk with the family. However, if you do not have enough money, the person must resort to requesting car loans . A borrower can request these funds in Mexico, through banks or private credit organizations.
The application for car loans in banks is a bit more complex, not all applications are approved. In the case of online credit institutions, the granting of these loans by 66% has increased over the past few years. In relation to the banks that only approved 34% of the credits. This is due to the fact that credit institutions have relaxed the requirements to access loans.
When requesting your car credit, the customer can request financing for the total or partial cost of the vehicle. In addition, the car can be new or used, which makes loan conditions more flexible. As the borrower decides the amount that requires money and how long it will repay the loan. Evidently, the applicant must consider the amount of monthly income and expenses. To determine if your ability to pay allows you to buy a car.
Loans without urgent credit bureau
Loans without urgent credit bureau 24/7 are a credit modality for those who have difficulties with their credit history. It is well known that in banks, it is impossible to apply for loans for cars with a negative financial profile. Which means that the applicant does not have a respectable credit history in the credit bureau. This file informs the banks and credit companies about how the borrower has behaved towards his debts.
So all those people who are denied loans for cars, may request financing from lenders. Through the Internet, customers access the web pages of these financial organizations. Then they ask at any time and day of the week for their credit, without moving to make the request in person. In this way, time and effort are saved in the management of this type of financing.
In addition, customers who require auto loans without a bureau; they receive the approval of their financing in a few minutes. Since the credit organizations trust their clients and want to support them by making the procedures more flexible. The borrower must simply demonstrate stability and sufficiency in their monthly income. This is essential because this information determines if the person can cancel the credit payments within the established deadlines.
In addition, credit companies offer tools for car loan simulators without bureaus. So that the clients can know the amount of the payments of the installments of their credit. Which includes fixed annual interest rates and opening fees. With just entering the cost of the vehicle and the amount of the down payment, the system will disclose the monthly payments. All this process with the greatest security and financial transparency.
Credits for cars
Car loan applications in Mexico have increased, due to the innumerable offers presented by lenders. The banks with their rigidity in the demands to grant loans, have lost market in front of the credit companies. In these organizations from the beginning it is very easy and fast to request these funds. First, the customer can decide if the vehicle is new or used. Also, you can choose the auto brand you want to buy.
In addition, financial offers are varied and the borrower can choose which credit entity is most convenient to borrow. Likewise, it is not necessary to visit a large number of offices to request information on car loans. Online the client can evaluate all the options and make his request from a computer, tablet or cell phone. Likewise, prior to the request, the financing can be simulated and thus the number of installments and their amount can be known.
Also, financial entities grant loans for cars covering the value of the vehicle. In addition, the amount of down payment and the cost of insurance. Additionally, the amount of these credits can be from 10,000 to 300,000 pesos. With terms to amortize the financing in 12, 24, 36 and 48 months. Then, if money is urgently needed, this is not a problem. Because after the approval in 15 minutes the capital is transferred to the borrower’s account.
How does auto loans work?
The operation of car loans is simple. However, the procedure must be carefully taken to be successful.
- Interests : When you want to buy the car a bank, car agency or credit institution can finance the credit. The person must be aware that he must pay the amount of the financing, plus interest in a period of time. If the debtor stops paying the loan, your lender can garnish the vehicle.
- Different rates : It is advisable to consult with several lenders, comparing their conditions and interests, to choose the most convenient. If it is required to make an initial payment on the percentage of the price of the car, it is at 10.4%. The advance payment of the part of the car price minimizes the risk of the auto loan lender.
- Funding terms : Auto loans are canceled in installments. Almost all car loans have repayment terms up to 72 months. If the client lengthens the cancellation of the credit, it reduces the amount of the monthly installments. However, a very long repayment term means higher interest. Of course, the debtor is the one who must choose the payment term that is most comfortable to cancel.
- Commissions and fees : In addition, loans on cars are subject to the annual percentage rate, which is an interest rate. Likewise, the lender adds to the cost of the credit other charges for administrative management fees and penalties if any.
- Depreciation : Additionally, new vehicles suffer depreciation, immediately leaving the site where it was purchased. After three years, new cars are worth 40% less than the price of their purchase. So it is not convenient to take so many years paying car loans , because when you finish canceling the vehicle, you will have lost value.
How to apply for car loans?
- The first thing before asking for car credit is to analyze the type of vehicle you want to buy.
- Then investigate the cost of buying that car, if they request a down payment and how much the insurance will cost.
- After using a buyer for online car loans choose a lender. It must offer transparency, speed of response, and convenient financing and interest periods.
- Next, enter the website of the selected credit institution. Use the car loan simulator on the page to find out about the number of installments. Also, about the amount of them.
- Subsequently make the request for financing, making the registration on the website. You must fill out a form with personal information for the application of the credit.
- You have to wait a few minutes for the credit organization to communicate. To confirm the data of the applicant to credits for cars.
- If the required economic profile is met, the approval response is received in a few instants.
- Consecutively the client must read all the conditions of the contract. Then sign it and wait for the transfer of the loan money for cars.
How to compare loans by cars
When the decision is made to buy a car. People get excited and want to quickly solve the management of car loans. However, before starting the procedures for the purchase, some aspects must be known. As if you need a down payment which would be 30% of the cost of the vehicle. Then if a financed insurance will be hired or the cash payment will be made.
Then, using the internet, you should enter a car loan comparison page. The idea is to find financial entities that, if the case arises, finance the down payment and the insurance. Also, that the credit covers the total value of the vehicle. In addition, the amortization periods are sufficient to cancel the financing comfortably.
Also, it is convenient to list the rates in the list offered by the tool. Which are the annual interest rate and the total annual cost rate (CAT). As well as the fees for management, automotive loans, administrative procedures, penalties, among other costs. Likewise, it is convenient to verify if the credit institution grants periods of lack of credit and how many months they are.
After selecting the financial organization, it is convenient to make telephone contact, by email or social networks. In this way, you can make the necessary consultations that end up clarifying the doubts about car loans. It is recommended before signing the contract to read the content carefully and ask what is not understood. A loan of such magnitude is a great commitment and after signing the agreement, payments must be made on time.
Who is a car loan for?
The credits for cars are directed to a specific audience. Since you must have a certain profile, to be able to access this type of financing. In lenders and banks they prefer that applicants are in a minimum and maximum age range. That is between 21 and 69 years, because a very young person may not have the resources to pay. Likewise, a person of great age would be in the maximum age limit of life expectancy.
Next, the income of those who opt for car loans must be recurrent and periodic. It is mandatory that applicants have a stable employment relationship and demonstrate income above 7,000 pesos. If you do not have a company payroll, but the worker is self-employed or entrepreneur. With your tax return and audited financial statement for the last year you will not have any problem, to request these financing.
In addition, those with a poor credit history will find it difficult to obtain loans for cars. Although there are always alternatives such as loans without urgent credit bureaus 24/7. Which provide financing to people with a history of delinquency, but with very high interest rates. The most important thing is that that select group of people to whom the car credits are directed. Be responsible with your commitment and have good ability to pay.
So, if a person meets all the above mentioned profile, the auto loans are directed to it. It is important to reflect and understand that each financing is directed to a specific market. Everything arrives at its time, with effort and dedication the goals can be reached. To build the ideal economic profile that allows access to financing such as vehicles.
What are the auto loans requirements?
- Age range between 21 and 69 years and 9 months.
- Current identification with its respective photograph and signature.
- If you are a foreigner, you must present a copy of the FM2 / FM3 immigration form.
- Present current proof of address. In case the address of the applicant is not in the official identification.
- Possess a respectable credit history.
- Monthly income over 7,000 pesos.
- Letter of employment with letterhead specifying at least one year of seniority in the company that works. The letter must be signed by authorized and sealed personnel.
- Have a bank account at any bank.
- Original voucher of monthly income, if you work for a company must be for the last three months.
- Own cell phone number.
- Active email account
- Some lenders apply for life insurance that covers the total amount of the car loan.
- Have a property damage insurance for the car.
- If the worker is self-employed or entrepreneur must submit his discharge issued by the Ministry of Finance, signed and sealed. Also, you must show your tax return for the last year and partial of the year that is in progress.
- Make the online application on the website of the chosen lender, to request the car loan.