Myth Or Reality: Non-interest Auto Loans

Long-term saving of money for purchase of the car passed into oblivion. Today purchase of a car may be resolved by means of bank loan. To buy the vehicle on credit under zero interest is not a myth any more but a reality. Today the state, producers and banks do everything in order the credits for cars became more available. Purchase of the car on non-interest credit becomes a routine matter because not everybody has personal money for complete repayment and also there is no wish to overpay on the credit.

Banks levy percent on quite legal basis earning on loaning. In this case the interest is a payment for credit use. Granting of credits without overpayment is absolutely certain transaction. For example, the bank serving auto sales center buys the right to credit deals of auto sales center. Now the sales center has an opportunity to arrange non-interest loans. It also undertakes payment of interest rates. Such services are available in every city. But many buyers carefully treat the purchase of a car on non-interest loan. They are sure that crediting of this sort are regular tricks of cars sellers.

However, non-interest loans really exist. They are just stipulated by three conditions which can be observed not by everybody.

• The first condition: the first fee should constitute at least a half of purchase cost, it is not within everybody’s powers;

• The second: the agreement is valid not more than two years, as a result, monthly payments are higher than those to be paid within five years;

• The third: insurance premium considerably increases.

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