REPLACEMENT OF AUTOMOBILE CAR NEEDED VEHICLE VALUATION

Currently there are a number of banks and credit institutions that provide loans to customers based on mortgages of their old cars. However, getting a used car mortgage is not really popular and not all cars can be used as collateral.

There are a lot of customers who are wondering about whether a mortgage loan for an old car is really safe? How high or low are the bank interest rates for car mortgage loans? When there is a need for a loan, how is the file and procedure to get the right amount of money you want?

In the past, to get a bank loan in the form of a mortgage, customers often had to prepare collateral such as houses, construction works attached to land, savings books, payroll ... These assets must belong to ownership or use rights, management of customers. Although not as popular as the above forms, mortgage loan service for old cars is also provided by a number of big banks such as VIB, VPBank, Vietcombank, ... to meet the capital needs of customers. Here we will find out specific information about this type of loan.

In the form of car mortgage loans to customers who own cars, banks will rely on the value of the car to provide mortgage loans. When borrowing from a bank to buy a car, the customer is responsible for paying both principal and interest on a monthly basis at the bank branch where he or she borrowed money. Disbursement time when borrowing a car mortgage is from 3 - 7 days depending on the application.

Benefits of getting a car mortgage at the bank?

• Simple procedure, fast car paper mortgage loan records
• Car mortgage loan valuation is higher than other forms
• Helping you to choose the best bank loan products with preferential interest rates, lowest interest rates, reasonable loan periods, not being dependent on any banks.
• Full package banking services: proof of purpose, revenue sources, maturity, notarization ... with the lowest cost, because there are no intermediaries or brokers.
• Be handled directly by credit specialists, avoiding brokers or intermediaries.

Conditions for car mortgage loan?

• In order to get a loan, the borrowers financial position itself and the cars mortgage condition must meet the requirements set by the bank. For borrowers: Most banks will require borrowers to satisfy the following conditions:

• Customers have Vietnamese nationality. Some banks can accept the borrower is Vietnamese with a foreign spouse.

• Customers must be 18 years old when applying for loans and not more than 75 years old at the end of the loan term.
• Customers own cars in the city area or provinces with branches of the banks that customers want to borrow.
• Customers have a stable source of monthly income to ensure their repayment ability. There are also cases where customers want to borrow less (less than 50%), they will not have to prove income.
• For collateral: Collateral is the car in use of the customer. But not all cars are eligible for a loan. Your old car is usually no more than 4 - 7 years from the date of release.
• Conditions for car mortgage loan? The loan amount is up to 75% of the remaining value of the vehicle

Limits and interest rates for car mortgage loans

When considering granting loans to customers, banks will conduct appraisal of the residual value of the car according to the market value at the time of valuation. Normally, the bank will not grant loans to more than 50% -75% of the value after appraisal.

However, the value of the remaining collateral is only an important factor, the loan amount also depends on many other factors such as: financial capacity, income source of the customer. In addition, loan conditions will have specific changes depending on the regulations of each bank.

The loan interest rate usually fluctuates around 7-8% / year in the first 12 months and follows the adjusted interest rate in the following years. Loan period can be up to 7 years.

Car mortgage rates and interest rates Used car mortgage rates are similar to other forms.

Getting a mortgage for an old car has the advantage of being quick to disburse, the procedure is also quite simple. In difficult economic situation, this can become a favorite form of many customers. If there is a need, please contact our counselors for assistance in preparing the most accurate records at the request of the bank.

According to Vietnams financial market