Statistics show that only 2-3% of Ukrainians drive cars less than 1 year old. The next group, cars up to 5 years old, accounts for another 10-15%, while cars up to 15 years old account for about 30%. The average age of cars in our country is approaching 23 years.
That is why there is nothing surprising about the popularity of loans secured by used cars. Today, this service is provided by both banks and private financial companies. We explain it in more detail below.
What is a car-secured loan and how does it work?
To receive a loan, you need to prove your solvency and provide guarantees that the borrowed funds will be repaid. By correctly assessing its risks, a financial institution can offer you the best lending terms. Providing a car as collateral is one way to receive a favorable offer.
In the event of serious violations of the agreement terms, the lender has the right to repossess the vehicle through the enforcement service and sell it at auction to compensate for its losses. Although such measures are extremely rare in practice, it is still worth knowing about them.
How to properly value a used car for receiving a loan?
If you are planning to take out a car-secured loan, you need to contact an independent expert agency. Using approved methods, it will accurately determine the market value of the car, meaning the price at which the vehicle could be sold in the event of repossession. The involvement of an intermediary guarantees fairness in the transaction – it rules out unfair advantages for both the bank and the client.
Financial organizations usually have a number of partnership agreements with expert agencies. This allows them to arrange a car-secured loan quickly. By working with such agencies, you do not take on additional risk – even when a partnership agreement exists, these agencies provide an honest valuation. Reputation is the foundation of their business success.
What documents are needed to receive money secured by a car?
To receive money secured by a car from a bank, you need to provide:
- passport of a Ukrainian citizen;
- vehicle registration certificate;
- individual taxpayer number (RNOKPP);
- certificates confirming income, employment, and the absence of overdue loans;
- an expert report on the valuation of the vehicle.
Receiving a car-secured loan from a private financial organization is even easier. You only need the first three items. Less bureaucracy means less time and effort spent.
What are the terms and interest rates for a loan secured by a used car?
By contacting TRUST AUTO car pawnshop, you can take out a loan secured by a vehicle for an amount of up to USD 50,000 in UAH equivalent. We offer favorable financing terms – from 2 to 36 months and an interest rate from 2% per month. The maximum loan amount for a used car is 85% of its market value.
The favorable lending terms do not end there. If you have problems repaying monthly installments, we can offer an extension to reduce the burden on your budget. Our company also has an exclusive offer. The grace period means that you can continue using the loan for another 30 days after the agreement term expires.
Can you use the car while it is pledged for a loan?
Right to drive with a car-secured loan
At TRUST AUTO car pawnshop, you can take out a loan secured by a car with the right to drive. This is an ideal choice when you urgently need money, but the car is your main source of income, for example, when working in a taxi or commercial transportation.
Conditions for using the vehicle
The car pawnshop sets minimal requirements for keeping the right to drive. All you need to do is keep the car in good working condition and not take it abroad.
Cases when the car remains in the pawnshop parking area
An alternative is a car-secured loan with the vehicle placed in the financial company’s parking area. This solution lowers the interest rate, increases the maximum loan amount, and generally improves the terms. When you leave the car as collateral, you do not need to worry about its safety – it will be under 24-hour security.
Get money secured by a used car online – Cashtime
Our financial company has also launched an innovative online lending service – Cashtime. Using it, you can receive a loan secured by a used car in an hour by completing four simple steps:
- Install the mobile app and register. You enter your passport details and vehicle registration information.
- Submit the application. Photos of the car and documents are attached to it.
- Wait for the decision. The response is provided within 40 minutes. More than 95% of applications are approved.
- Receive money secured by the car. The funds are credited to cards of any Ukrainian banks. You can use them at your own discretion, without purpose restrictions.
The Cashtime service operates throughout Ukraine. After installing the app, you can arrange a car-secured loan in Kyiv, Ternopil, Chernihiv, Ivano-Frankivsk, and other cities. It is convenient and secure – your personal data is protected by SSL certificates and modern information encryption methods. We are ready to provide a loan of up to 30% of the car’s market value. If you need more, we are waiting for you at the TRUST AUTO office.
