If you do not have enough funds to immediately purchase the car or special equipment you need, credit tools can come to the rescue. Correspondents of NUR.KZ have figured out what opportunities are available for Kazakhs.
Auto loans are, first and foremost, convenient. Not everyone has the opportunity to buy the car of their dreams today without worrying about whether they have enough savings in the bank. A loan allows you to gain certain benefits from the purchase.
Because you can choose a newer and more expensive car, meaning that in the future you will spend less time, money, and effort on its repair, maintenance, and inspection, while only having saved up a third of the cost of the car of your dreams.
Modern banking tools allow the use of auto loans for the purchase of both new and used cars. The second option is generally cheaper, but you should remember that used cars may have hidden defects that are not noticeable upon initial inspection.
The condition of a used car is also affected by the country of manufacture. Different manufacturers have different service lives. This is often taken into account in the loan conditions. For example, if you take a loan in Nurbank, the conditions include maximum service life terms for used cars. For cars made in Japan and European countries, it's up to five years, while for cars from Korea, it's up to three years.
"With such a differentiated approach, the appeal of lower quality cars is reduced, thus minimizing risks for buyers, considering that a car is a long-term purchase," noted Nurbank.
According to their data, current trends show that Kazakhs often buy used cars. When buying such cars, the down payment will be 50% of the cost, whereas to purchase a new car, the buyer only needs to save up 35%. What to do if you doubt that your official monthly income will get you an auto loan approval? You can involve a co-borrower.
"This can be a spouse or another close relative. Then the co-borrower's income is considered when calculating the primary borrower's solvency. The co-borrower shares the responsibility for paying off the loan only if the primary borrower fails to pay. In all other cases, the co-borrower does not incur any additional expenses," clarified market participants and added that new cars in Nurbank can be purchased on credit for a term from 9 to 60 months, while used cars can be arranged for a term from 9 to 24 months. For many Kazakhs, a car is a source of income, either primary or additional. Thus, purchasing a car on credit becomes even more beneficial, as the vehicle will pay for itself. The most important thing is to choose a beneficial program. For small and medium-sized businesses, there is a special "SME-Auto" program from Nurbank, which allows the purchase of passenger cars and special equipment.
"This is convenient and beneficial for customers because the acquired vehicle itself serves as collateral. The loan term is up to 84 months, and the annual effective reward rate is 19.6%. With this program, you can purchase passenger, freight vehicles, and specialized transport for various purposes, trailers/semi-trailers," the bank specified. Most often, the choice of vehicle depends on the specifics of the customer's business region. Currently, according to Nurbank, there's high demand among Kazakhs for financing the purchase of passenger and freight vehicles.
