To buy a car on credit in Ukraine

Despite a catchphrase that a car is not a luxury but a means of transport, not every Ukrainian has an opportunity today to buy it out of own savings. If there is some initial capital, you can buy a car on credit. But are the credit conditions advantageous or is it a great debt load? Are there any other more available ways to become a car owner? Is it possible to get loan for used car? We’ll try to answer all these questions in this article.

Credit conditions for new cars

If you decide to buy a new car on credit, be ready that you can choose a car only from the showrooms of Ukraine, and this means that their price can be rather high initially. In addition to the large initial capital, you will have also to pay a lot of various fees. The compulsory credit condition is full comprehensive insurance for the entire validity period of the agreement. It is also necessary to take care of a sound credit history and guarantors.

Buy a used car on credit or take under leasing?

If you decide to get a used car on credit, it will be rather difficult to find a bank or an organization that provides this service on advantageous conditions. In this case, specific requirements are made not only to the borrower but also to the selection of the vehicle. It is much simpler and quicker to use the car leasing service.

Leasing is one of the forms of credit providing the advantages of the long-term car lease and hire purchase. To take a used car under leasing is more beneficial than to buy a used car on credit for several reasons.

• A minimum set of documents is required (namely, passport and identification code).
• The time of execution takes a couple of hours only.
• The third-party only insurance, but not the full comprehensive insurance, can be issued. The banks grant credit only if the full comprehensive insurance is issued for the entire validity period of the agreement.
• You can choose a car from the Leasing Company base or select any car in Ukraine and even abroad.
• All commission fees and insurance, registration and preparation charges shall be covered by the Lessor. In case of bank credit, a client pays for all additional services and commission fees.
• In each particular case, the initial payment is individually calculated and can be equal to 0% under certain conditions. To buy a car on credit, the banks require the initial payment of at least 10% of the car price, an interest rate considerably increases at the zero advance.

It is also necessary to take into account that only the people with sound credit history will be able to buy a car on credit in Kiev. The banks carefully verify the borrower before the agreement execution and assess his creditworthiness. The subject of pledge in leasing is the car but not the funds, that’s why lighter requirements are made to the borrower and the deal is executed even with people having no so good credit history.

As the lessor remains an owner until the leasing agreement expiration, any third parties cannot apply for the car, and it cannot be a subject of the property dispute. At the same time, a car bought on credit is registered for the borrower and can be a disputable property, for example, in case of divorce.

When comparing both services, it can be said with confidence that car leasing is a reasonable alternative to auto loan.

Where to apply for car leasing in Kiev?

If you decide to buy a car under leasing, apply to CAR INVEST UKRAINE. We have own car base but you can choose the model you liked in the Ukrainian and foreign markets. A minimum set of documents is required to execute an agreement, and we undertake all registration and insurance costs. For car leasing details, call on the phones given on the web-site.