Does a Used Car Get Credit?
In today’s conditions, the car turns into a necessity rather than a luxury for every family. Therefore, besides the arguments such as the brand, model, fuel consumption of the vehicle, the price is also very important. In these periods when new car prices increase rapidly, people’s tendency to second-hand vehicles is an indicator of this situation.
What Kind of Way Is Followed While Buying a Used Car?
First of all, vehicle appraisal reports and damage records are questioned, and then loans are drawn according to the need. Banks have vehicle loan options for such situations. If a bank loan is used when purchasing a used vehicle, some details should be known. Those who want to buy a second-hand vehicle can benefit from the vehicle loans of banks. Banks determine the credit support for second-hand vehicles as 70% of the vehicle insurance value.
If the credit rating of the person who will buy a used car is in certain criteria, the probability of using a loan is higher and he can use a loan without any problems. According to the new regulation, those who want to use a used car loan can use it for a maximum of 48 (forty eight) months. With this arrangement, &70% of the automobile insurance cost of the vehicle to be purchased is financed by the banks. A payment plan is created with a maximum maturity of 48 months.
Up to what age is a second hand car loan given?
Although the answer to this question is not very clear, each bank has a different application. There are different banks that give second hand loans up to the age of five, up to the age of ten and up to the age of fifteen. In second-hand vehicle lending, banks can give loans up to ten years old. On the other hand, banks provide individual consumer financing for vehicles aged ten and over.
What Kind of Documents Are Needed for Loan Application for Buying Used Vehicles?
1- Application form to be taken from the bank
2- If there is a guarantor, the photocopy of the applicant and the guarantor’s identity card
3- Tax plate, balance sheets and income documents for the last three years for companies
4- If the guarantor is an employee or a tradesman, the same documents are issued for him.
5- Payroll if the loan user is an employee
6- Income documents for companies
7- Documents showing the partnership structure for companies
If we are to sum up; Used car loan. However, the above-mentioned conditions must be met.
What Happens to a Deceased Person’s Credit?
In today’s world, it has become quite common to take loans from banks or various financial institutions. The use of credit is important for both individuals and companies. Loans can be used for many needs, from low amount of daily needs to projects that require large financing. However, if the borrower dies, what are the consequences for the loan he took? Death is an event that we do not know when it will come and can happen to any of us at any time. The answer to the question of what our debts will be in case of death is also important.
Importance of Life Policy
The most important issue in the use of credit is whether the borrower has a life policy or not. If the deceased person took out life insurance while taking out a loan, the insurance company undertakes the remaining debts, with some exceptions. These exceptions are; It occurs when an important illness is hidden during a suspicious death and life policy. Banks and financial institutions often encourage their customers to take out a life policy. Making a life policy will also have beneficial results for the borrower. It is important to have a life policy, especially for long-term loans.
In the absence of a life policy
If the borrower has not taken out a life policy during the use of the loan, the loan debt passes to his legal heirs and, if any, to the guarantor of the borrower. The legal heirs of the deceased have to assume the debts of the deceased as well as the property of the deceased. In order to get rid of this loan debt, legal heirs must make a refusal of inheritance. In this way, legal heirs can get rid of loan debt. If the person using the loan has not taken out a life policy and has shown a guarantor while using the loan, a guarantor is required for the performance of the debt. If the bank or financial institution cannot collect the debt in any way, the debt is considered as bad credit.
As a result, it is very important to have a life policy while using the loan. The life policy removes the uncertainty that the borrower will leave behind in the event of his death. If the borrower has a life policy, the debt is not left to his legal heirs and is paid by the insurance company. Therefore, taking out life insurance while using a loan should not be seen as an additional expense.