They are becoming more and more popular among the people. Indeed, there is a great opportunity to become the owner of a good car, bypassing the stage of accumulating the required amount. And as the practice of banks shows, the number of potential car owners at the moment could be greater, but many are stopped by car insurance.
How to get a car loan without CASCO?
And many people are concerned about this question: is it possible to get car loans without CASCO. The easiest way is to purchase a used car on credit, over five years old for domestic models and over seven years old for foreign cars.
It is also possible to get a car loan without CASCO at. First of all, this is the registration of a regular consumer loan without specifying the purpose of the loan. The advantage is that you can choose any car dealership and any car you like. The downside is the increased loan rate.
Also, some banks accommodate the client halfway and do not require CASCO insurance when purchasing a car on credit. Thus, banks, in a competitive environment, are trying to increase the number of their clients. The only thing is that in this case the latter is required to provide a complete package of documents. The advantage is that you do not spend money on CASCO, the disadvantage is the increased rate and the high down payment (up to 40% of the cost).
To find a suitable loan on the website, you can do the following:
- Select the term and amount.
- Explore the options offered
- Send to your chosen bank.
Getting a car loan without CASCO is not so easy, since the bank usually issues it only after purchasing exactly this type of insurance product. It is extremely difficult to circumvent this condition, so finding a profitable loan without such insurance becomes a difficult task. But on our website it is possible to find those organizations that provide lending on favorable terms in Moscow. When registering, you do not need to purchase a CASCO package, which significantly reduces overall costs.
Which banks give car loans without CASCO?
Not all credit institutions and banks can issue a loan for a used car without CASCO. The same applies to buying new cars. Sometimes even life insurance is required, which further increases the buyer's costs. Each insurance product in a bank costs a considerable amount. To save money and quickly find all car loans without insurance, just use our service. To search you need:
- Select all required fields in the search filters. For example, it is necessary to indicate that the search concerns only used or, conversely, new cars.
- Select, if desired, the type of sorting of results.
After this, a list of banks and companies in Moscow will be generated from which you can take out a loan without applying for CASCO insurance. They give loans for used cars or a completely new vehicle. This allows you to remove a rather significant item from the list of costs, since CASCO costs a large amount. But now you can take out profitable car loans without this type of insurance.
Benefits of the service
The site allows you to very quickly find all banks and other credit organizations that do not require insurance. It is extremely difficult to find such information on your own. But on our resource it is provided quickly and free of charge. You can enter the section at any time and get an up-to-date list of organizations. Therefore, you can quickly buy a used car using credit funds and not spend money on:
- Insurance. The loan can be issued for a used or new car. Often it is not profitable to buy a used car with expensive insurance, so it is important to find a bank without such a requirement.
- Other banking products. For example, you can take a used car without life insurance.
If you need to rent a used car, we have all the current data on credit institutions. Many of them include issuing a car loan for a new car. It is enough to accurately specify the search parameters and see all the loans issued for the purchase of a car.
A car loan allows you to purchase a vehicle if you have insufficient funds. Banks and other lending institutions issue car loans.
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In most cases, a mandatory condition is to purchase a CASCO insurance policy until the borrowed funds are fully repaid.
Is it possible to get a car loan without CASCO? Which banks can you apply for a car loan with similar conditions? What is the full cost of a car loan without CASCO? These and many other questions can be answered by reading this article.
Why do banks require insurance?
The owner of a vehicle registered in the Russian Federation is required to purchase an MTPL insurance policy, which protects the interests of the injured party in the event of an accident.
Voluntary insurance (CASCO) differs from the MTPL policy in that the payment is made directly to the owner of the vehicle.
Insured events under the CASCO agreement are:
- damage to a car as a result of an accident, provided that the owner of the vehicle is at fault;
- damage to the vehicle by third parties, including weather, natural disasters and animals;
- car theft.
By applying for CASCO insurance, the vehicle owner insures his own car against most possible dangers. It is this factor that primarily attracts the attention of banks when issuing car loans.
Since a car purchased with borrowed funds becomes the subject of collateral under a loan agreement, the bank tries in various ways to preserve the collateral property in proper form, which is what insurance helps with.
The CASCO policy is also an additional guarantee of repayment of borrowed funds. In case of damage or theft of a car that is pledged, the amount of insurance compensation is paid to the credit institution that issued the loan.
The owner of the vehicle can only receive the remainder of the insurance compensation, which exceeds the amount of obligations to the bank.
Thus, a CASCO insurance policy allows you to minimize the risks of the bank that issued the loan for the purchase of a vehicle.
The second factor that attracts credit institutions to issue car loans with mandatory insurance of the collateral is the cost of CASCO. On average, the price of an insurance policy is 10% of the cost of the car, taking into account normal wear and tear.
The cost of the insurance policy, as agreed between the parties, can be:
- included in the amount of borrowed funds;
- paid by the owner himself.
If the cost of insurance is included in the total loan amount, then annual interest is charged on it. In this way, banks increase the amount of profit they receive.
The third reason for the requirement to purchase CASCO is the additional profit the credit institution receives from the insurance company.
By purchasing a vehicle under a specific lending program, the borrower undertakes to take out a voluntary auto insurance policy from a company offered by the lending institution.
For providing clients, the insurance company pays the bank a certain percentage, which is additional income.
How to refuse
Many banks offer clients several car loan programs. A prerequisite for some programs is compulsory insurance of collateral. Other programs do not provide additional collateral for a car loan.
It should be noted that the bank can offer programs obliging the client to purchase a CASCO policy with more favorable conditions, which include:
- maximum car loan amount (without CASCO, borrowed funds may be limited to a certain amount, and if a policy is purchased, the maximum amount is determined based on the client’s income level);
- loan term (car loans without CASCO are issued for a shorter period, which, as a rule, does not exceed 3 years);
- interest rate. To reduce risks, banks increase the interest rate when issuing a car loan without compulsory insurance.
can only be obtained upon mandatory registration of an insurance policy.
Currently, banks do not impose car loans on borrowers with insurance on the collateral. The client has the right to choose the most suitable loan terms for him.
However, it should be taken into account that the difference in the proposed car loan programs is quite significant, and before refusing to purchase insurance, it is recommended to determine the amount of economic benefit of such a car loan.
Most often, the interest rate and, accordingly, the total cost of a car loan significantly exceed similar indicators for car loan programs with the purchase of insurance.
How and where can you get a car loan without CASCO for a new car?
How to get money to buy a new car? First of all, the borrower is recommended to choose a credit institution that offers such a program.
You can contact the following banks:
| Bank's name | Basic conditions of the car loan program without CASCO |
| VTB 24 | Available for purchase: new domestically produced cars; new and used foreign cars. Maximum amount: — for new cars – 1.5 million rubles; — for used cars – 600,000 rubles. Interest rate – from 22.9% per annum. The down payment amount starts from 20% for new cars and from 30% for used cars. Car deposit is a must |
| Rosbank | You can only purchase a new car. Loan amount – 300,000 – 5 million rubles. Duration – 6 months – 5 years. The applied interest rate is 21.5% per annum. Down payment – from 20%. Deposit is required. |
| Alfa Bank | The loan is issued for the purchase of a new or used car. Maximum amount: — for a new car – 3 million rubles; — for a used car – 2 million rubles. Interest rate – 24.99% per annum. Initial contribution – from 30% The maximum period is 5 years. |
| UniCredit Bank | You can get borrowed funds for new or used cars through various car loan programs. The maximum amount of a car loan without CASCO is 1.5 million rubles; Interest rate – from 19% per annum. Initial payment upon purchase – from 30%. The maximum term of a car loan is 3 years. |
| Bank "Avangard" | Only for new cars. The loan amount is not limited; The applied interest rate is from 23% per annum. Down payment – from 30%. A deposit of the purchased vehicle is required. |
The table shows the most popular banks among consumers. Each borrower has the right to independently choose a bank represented in the region of residence and select the most suitable car loan program according to the conditions.
It should be noted that most banks offer special programs for the purchase of cars intended for bank clients. In most cases, the interest rate on the loan can be reduced by 1 - 2 percent.
Refinancing
Refinancing a car loan is getting a new loan on more favorable terms, with the obligatory repayment of existing debt.
Refinancing (or refinancing) can be carried out only if this action does not contradict the terms of the concluded loan agreement.
Refinancing allows you to:
- reduce the monthly payment on the initial car loan;
- reduce the total cost of a car loan by lowering the interest rate on the new loan agreement;
- extend the payment period for a car loan in case of emergency.
To refinance, the bank must provide: - Standard package of documents for obtaining a car loan, which includes:
- passport;
- driver's license;
- confirmation of salary amount;
- a copy of the work book;
- original PTS.
Based on these documents, the borrower's solvency is verified.
- A certificate from the bank where the car loan was previously issued indicating the amount of the outstanding balance.
- The payment schedule provided for by the previously concluded loan agreement.
- A document from the bank about the possibility of early repayment of a car loan.
- Details of a bank account opened for credit transactions. To this account, the credit institution that will carry out the refinancing will credit the missing amount of money for early repayment.
- A document assessing the residual value of the car, issued by independent experts. In most cases, an appraisal is required when purchasing a used vehicle, but it may be required in other situations. Using the assessment, the effectiveness of refinancing and the interest of the credit institution in carrying out the procedure under consideration are determined.
- Application – a questionnaire indicating personal information about the borrower, vehicle and source of salary.
After checking the information received, a new loan agreement is concluded between the bank and the borrower on the previously agreed terms.
The creditor bank transfers the amount of debt under the old loan agreement, after which the borrower is obliged to obtain a vehicle passport from the previous bank and transfer the document to the new credit institution.
The delivery of the PTS to the bank is accompanied by the conclusion of a new agreement for the pledge of property. Refinancing programs are available at most banks.
The main conditions for on-lending are shown in the table:
The choice of a car loan program should be based on an economic calculation of the total cost of the loan.
A new car is an expensive purchase, so citizens often turn to the bank for help. By lending funds to the borrower, the credit structure carries certain risks; this forces the lender to require the car to be registered as collateral.
By applying for a loan without CASCO, you can save on additional costs, but getting it on favorable terms is quite difficult.
Voluntary insurance is designed to provide full financial protection, first of all, to the creditor, since if there are problems with debt repayment, the organization will be able to sell the vehicle and use the proceeds to close the credit line without losses. If the vehicle gets into an accident during operation or receives other damage, insurance coverage will minimize losses from the depreciation of the vehicle. Thus, the lender has a direct interest in the existence of the policy.
On the other hand, the policy seriously increases the costs of the motorist, who is already forced to pay the debt to the financial institution on a monthly basis. In this regard, the question arises of how to get a car loan without CASCO, thereby reducing the financial burden of the borrower by an average of 50 thousand rubles.
In response to complaints from motorists, in 2017 the Central Bank published new clarifications regarding the rules of car loans and the right of a citizen to refuse a policy when applying for a loan immediately or within 5 days after concluding a loan agreement.
By insisting on purchasing a policy, a Russian financial institution is actually breaking the law.
As a result, the programs have been adjusted by organizations that try to impose insurance using other tactics:
- The new rules led to a temporary cessation of car loans at Sberbank and the expansion of mortgage and consumer loan programs.
- Gazprombank still issues car loans only when the driver purchases this agreement.
- At VTB24 you can buy a car on credit only if its value is up to 1 million rubles.
- At Rosbank you can buy a more expensive car worth up to 3 million rubles. However, new conditions arise - the loan payment will be at least half of the price of the car. The remaining portion is issued for a short period.
- Raiffeisenbank has several offers at once, but a car loan without CASCO does not cover all categories of cars. To purchase an imported SUV, you will have to take out annual insurance. From the second year of lending, you can refuse comprehensive insurance.
Due to the high price of the policy, few borrowers are satisfied with the need for additional costs for insurance, especially if they are taking out a car loan without CASCO for a new expensive car.
Governmental support
Special government programs are designed to promote the development of the Russian automobile market, and even in this case, comprehensive insurance is not necessary.
If you buy a car through a government program without taking out insurance, the percentage will remain below the average current rates.
Purchasing vehicles under the state program allows you to get a loan for a used car or a brand new car without obtaining CASCO insurance. The vehicle itself must meet several criteria:
- cars of domestic brand or assembly;
- price up to 750 thousand rubles;
- car weighing 3.5 tons;
- age – no more than a year.
State support involves quick loan repayment - within 3 years, the first installment is from 15 percent.
Conditions for providing such a loan
It would seem that the overpayment on a car loan should become less, but the situation looks different: despite the Central Bank’s instructions on the borrower’s right to refuse a voluntary type of insurance, lenders do not miss out on their benefits. If insurance is not taken out, the borrower may face the fact that the car loan will not be as profitable. More often this is compensated by the following factors:
- Raising the rate.
- More stringent requirements for solvency and credit history.
- Short repayment period.
- Small loan amounts.
- Increase in down payment.
- Charging additional fees.
- Limiting the ability to choose a car among partner car dealerships.
Due to the high risk of losing a car, a credit institution needs to take measures to protect its funds, so car loans without CASCO have a shorter loan period and a higher rate.
For the lender, it is necessary to prepare the following documents for consideration of the purchase of a car without CASCO for borrowed funds:
- client's civil passport.
- application form.
- driving license (if issued).
- document on employment and duration of work at the last place (copy of the employment document);
- document on labor earnings (2-NDFL, issued by the accounting department) or other income.
As additional documents, you may need a military ID, a document of title to the client’s property, registered as collateral.
Sometimes, based on a small official salary, a financial institution is ready to issue only a small amount to the borrower. It is possible to increase lending if you provide the bank with additional guarantees in the form of guarantors whose solvency and responsibility will not arouse suspicion among the lender.
How to get a car loan without CASCO
Acting in a certain sequence, every motorist can get a car loan for a used or new car without additional voluntary insurance:
- Selecting a car model and brand. Already in the process of selecting a vehicle at the dealership, you should find out which financial institutions the seller works with and under what conditions you can take out a car on credit.
- Next, you need to choose a credit institution that issues a loan without CASCO on optimal terms. By working with an online calculator for several lenders, you can pre-calculate what the monthly payment, rate, and maximum loan amount will be. Based on the information collected, a decision is made.
- Pre-submission of an application can be made by visiting a bank office in person, or by submitting an online application. It is recommended to send requests for a loan without CASCO to several financial institutions.
- The response received to the borrower is only preliminary. To obtain a final decision, a thorough collection of documents will be required and submitted along with the main application. The bank, when considering applications for car loans without a CASCO policy, will impose standard requirements on the client in terms of age, citizenship and registration, but it will be especially important for it to study the history of repayment of previous loans. When coordinating a loan, the rule applies that the absence of a credit history at all gives less chance of a loan without CASCO than the presence of at least some credit history.
- Then an agreement is concluded to purchase a car with or without mileage. If the salon cooperates with the bank, this will greatly facilitate the process of signing the bill of sale. You can complete the purchase procedure and sign the loan agreement in one day. Otherwise, an additional contact with the office will be required to conclude an agreement.
- On the day of registration of loan obligations, you must carefully study the form offered by the bank, check all the points, including those printed in small print, and carefully check the information entered about yourself. The following points should be especially well studied: the actual interest on the loan, commissions and their size, the method of calculating and making payments, as well as early termination of the contract. If the car was purchased for taxi use, they check whether the vehicle can be registered in the name of the borrower.
- After concluding a loan agreement, the bank transfers the down payment received from the buyer’s personal funds to the seller’s account, and also makes a final settlement with the previous owner.
Which banks can issue a loan without CASCO insurance?
A simple comparison of car loan programs will immediately reveal how lending without comprehensive voluntary insurance is not welcomed by banks.
The results of calculations obtained through online car loan calculators of Russian financial institutions show how much the interest on the loan increases, and therefore the overpayment.
It is also difficult to find the optimal offer, because not all banks are willing to risk their funds by lending significant amounts to clients with minimal collateral. The car itself is a highly dangerous vehicle, and a vehicle after an accident will never be able to restore the original value of the vehicle.
For example, VTB24 offers more than 20 different programs for buying a car, but only 2 types of loans are issued without voluntary insurance: “Freedom of Choice” and “AutoExpress”. If the standard conditions of “Freedom of Choice” allow you to purchase a foreign car at 11.9% per annum, then without CASCO insurance coverage the funds will be issued at 13.9%.
Calculation of overpayments for VTB24 shows that the difference in overpayments over 3 years, provided that a car is purchased for 1 million rubles and a down payment of 300 thousand rubles, will be about 30 thousand rubles. The borrower independently determines how much demand there is for purchasing a 3-year policy with such an overpayment. However, in other financial organizations the situation may be completely different, so you need to proceed from specific proposals that currently exist.
The following lending institutions offer the most interesting offers on car loans for used and new cars, from the dealer showroom.
These proposals are interesting because the funds can be repaid to the bank in equal payments over 5 years, while most credit structures would reduce the period to a minimum. The exception is UniCredit Bank - there the credit line will be valid for 7 years.
Until recently, it seemed impossible to take out a used car on credit without CASCO, but now citizens have the right to choose the most optimal of the current offers. To find out whether it is possible to get a loan from a specific financial institution, it is necessary to clarify the information immediately at the time of preparation for purchase, since the situation on the lending market changes quite often.
The so-called car loan without CASCO is very popular among car enthusiasts. Is it possible to take out a car loan without CASCO and somehow win on it? This can be obtained from several Russian banks under very unfavorable conditions for the borrower. The point of such a car loan is that you do not overpay extra money for a CASCO insurance policy, which, as you know, costs quite a lot of money (sometimes up to 10% of the cost of the car). In turn, the borrower overpays for a high interest rate, pays a large down payment, and so on. More on everything in order later in this article.
Is CASCO required when applying for a loan?
Typically, a CASCO policy is always purchased when a car is issued; this service is standard in all banks issuing car loans without exception. But as I already said, some banks issue their clients a car loan without CASCO, then CASCO policy may be optional . And this opportunity attracts many, since the potential borrower gets rid of the additional headache associated with the registration and payment of insurance under a CASCO policy. In turn, serious problems can arise in the event of an accident, but we will talk about this a little later.
If you seriously doubt that paying for CASCO is profitable, then I will give one illustrative example - car loan at Rusfinance Bank . If the car loan was issued by Rusfinance, then you will have to pay for CASCO in full for 5 years, since insurance is mandatory in this bank. For example, if the cost of a car is, say, 400,000 rubles, the down payment is 118,000 and a loan of 445,000 rubles (taken for 5 years), you will have to pay 11,900 rubles monthly. Of this amount, payments for a car will be 7,400 rubles per month, and for CASCO - 3,300 rubles per month plus life insurance of 1,200 rubles per month. The total cost of CASCO is 125,000 rubles for 5 years . In this case, the reduced interest rate is not as pleasing as it would be in the absence of a CASCO policy.
Borrowers like a car loan without CASCO because they don’t have to pay extra money. The more expensive the car, the more CASCO insurance costs. Banks require CASCO insurance, as this is a guarantee that the car will not depreciate. After all, there is a possibility that the borrower will not repay the car loan (so-called credit risks). In this case, the bank takes the car back. But what if the car is stolen or crashed? No bank will issue a loan at a loss, so it will always insure itself against various unpleasant cases, which is precisely why CASCO exists.
Which Russian banks can you get a car loan without CASCO?
There are several such banks. This is, for example, a bank well known to many VTB 24 who has a program AutoExpress. Detailed conditions of this car loan can be read in the article about according to our website. Under this program, it is possible to obtain a car loan without CASCO. There are other positive aspects, for example, the application process takes only one hour, and only two documents are required to submit it.
In principle, there is nothing more to say about the advantages of such a car loan. Now about disadvantages of a car loan without CASCO :
- The maximum payment period is only two years (usually a car loan is issued for 5-7 years);
- A down payment is required, and it must be at least 50% of the cost of the car (you definitely won’t be able to get it);
- The maximum loan amount is 500 thousand rubles (you won’t be able to take an expensive foreign car);
- Interest rate from 17% to 25% per annum.
How many people would agree to take out a car loan under such conditions? Of course, for the absence of the need to apply for CASCO insurance, the bank will charge the client the maximum. The overpayment amount will be quite large. So before applying for a car loan without CASCO, it is recommended to think very carefully. After all, such an attractive offer (as it seems at first) has a lot of pitfalls. Moreover, if you are not an experienced motorist, then it would still be better for you to register car loan with CASCO, and even better with a franchise . Knowing the approximate cost of repairs and prices for spare parts for your car, you can choose a normal deductible to slightly reduce the overpayment, but I won’t go into these details; the bank employee should tell you everything in detail.