How has car lending changed in recent years? – Car Loan

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There have been changes in both real estate collateral and car loans since March 1, 2010, and the provisions in force at that time are still in force. Starting from that date, the level of own funds in the field of car loans increased from 20% to 25-40% depending on the currency.

So, if we want to buy our car on credit, we need to have start-up capital and more than before.

There were changes not only in self-sufficiency.

car loan

Before you buy a car, it is a good idea to check the changes before you start to protect yourself from unpleasant surprises. We can not only talk about buying a car when it comes to car loans. Banks can also lend to their existing car.

This is called a motor vehicle secured quick loan or loan back. Of course, 75-80% of that is not worth the full value. The advantage of fast credit is that it is free to use and can be used on much more favorable terms than personal loans.

With regard to retail clients, Act 361/2009. (XII.30) Government Decree on Prudent Retail Lending regulates maximum funding under the following conditions:

  • On a USD basis, loan: 75% – minimum equity can be 25%
  • On a USD basis, leasing: 80% – minimum deductible can be 20%
  • On a USD basis, credit: 60% – minimum own funds can be 40%
  • On a USD basis, Leasing: 65% – Minimum own contribution 35%

How can non-retail customers avail?

car loan

For non-retail customers, financing can only be provided through a finance lease. These clients are not subject to the Government Decree on Prudent Retail Lending, so 80% of the maximum funding is available regardless of currency.

In case you would like to apply for a loan as a company, you can still do it with a financing ratio of 80%, of course, in the case of companies and companies, the chosen construction can only be leasing.

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