Modern motorists are increasingly and more often encountered ads for sales of a variety of cars that are satisfied with the auto bargains, they also provide certain services on bail. Since the need to take advantage of the services of auto-pharmacy can occur in each of us, it makes sense to consider in more detail, which is the firms of this kind, which activity they are engaged and what advantages have.

Autolbard - what it is

Now in more detail about the organization itself. Lombards of this kind are issued loans for not long time, taking off the car technique of various types.

Mostly a pledge under the loans are cars, but quite often there are cases when they leave special purpose techniques, diverse types of motorcycles, snowmobiles and even boats on bail.

The first structural organization called "Lombard" appeared in the XV century in France. On the territory of France there is a region of Lombardy. Hence the name. It is in this region that the merchants first suggested the inhabitants of the surroundings, in the form of funds, secured by property.

The price was both movable and not movable property. At that time, equestrian carts were attached to movable property. In other words, similar transactions can be considered the progenitors of car loans.

Closer to the middle of the XX century, such specialized organizations appeared in the United States. They continue their existence to this day. Unlike the inhabitants of our country, at that time, almost every American who has average income could please himself with the purchase of a car.

It was about this that such a business came across the United States and began to flourish quite quickly. After some time and other European countries appreciated the convenience and profitability of such organizations.

In the territory of post-Soviet countries, quite recently (about 10 years ago) began to open off the paintumps, respectively, residents were able to enjoy their services.

Initially, automotive pawnshops were located exclusively in the capital's cities. And only recently, such organizations literally flooded every city.

Turning at least once in such a contector, quite many remain satisfied with the procedure for the collection of the loan and the fact that another possibility of leaving the difficult financial situations appeared.

How to check the reliability of the auto bard

Decided to resort to services of such a pawnshop, first of all, it is necessary to make sure of his trustiness. To do this, it is worth an effort and understand the goal, which is primarily posing by Lombard.

In other words, how exactly he receives the main income from the transactions with customers. Options for profit in such organizations can be very diverse.

This item implies an understanding of which sources of income can be at the auto bar. Some of them put their main purpose of receiving income in the form of interest, which pays the client for the money amount obtained during the transaction involving the execution of the collateral for the car.

Others are only counting on fines imposed on customers for late payment of payments. In such office, the maximum can only be obtained 70% of the value of the equipment being left on.

Also, profit may be in the reversed cash from the sale on time not redefined transport. Such organizations offer the client issuing only 50% of the total value of the collateral. But, at the same time, it is worth being prepared for the fact that the percentage of payments will be set to the maximum.

The calculation is that the borrower will not be able to pay monthly contributions, and Lombard, in turn, will receive the full right to sell the car, and at the full cost. The sale of technology left in pledge is the main article of the income of such agencies.

It is worth taken into account that the most secure organization will be precisely the one that considers its primary profit gained from borrowers.

It is the same offices that customers give customers the greatest amount from the market value of the automotive transport of the left-deposited, and under a small percentage, giving the client there's the opportunity to pay a declared monthly amount on the concluded agreement on the loan to the client.

First of all, they are counting on attracting the most large number of customers and as a result - the dissemination of positive information about themselves.

The main motto of such a contact is to get a permanent profit, although not large, as well as, continuous replenishment of the client base.

Basically, their interest rate for the year does not exceed 7%. In some cases, the minimum threshold of annual payments can be only 3%.

Also, it is worth paying attention to the fact that they spend the most thorough and detailed check of those who want to obtain a loan compared to other offices.

After completing the loan repayment, the borrower takes its vehicle. There are conditions in which those who wish can use their car all the time that suggests a loan agreement.

In turn, when signing the contract under such conditions, the interest rate automatically increases. It must be understood and not to forget, since it will have to count the existing financial income in such a way as to have enough for monthly payments with a higher percentage under the loan agreement.

Conditions for making cars as collateral

Taking traffic on bail involves performing or compliance with certain conditions. The first is automotive liquidity.

It is important in cases where the borrower for which reasons does not pay in a timely manner and fully agreed in the contract monthly amount. This fact gives the right to place a car for sale. Here is liquidity and plays a role.

The transport released by the domestic auto industry is accepted as collateral, but with the production date not earlier than 2004. For the cars of foreign production, there are no such restrictions. Here the main thing is that they comply with the standards of technical specifications.

Business class machines, take as collateral is not entirely willing, as difficulties may have difficulty in cases of forced sales, with not compliance with the borrower of the Credit Terms of Agreement.

The borrower also carefully check: the place of official work (including the legal address of the company and the phone number of the director, other direct chief).

This information can be used to obtain reliable information about the place of work of a person who wants to get a loan. In addition, the credit history of the client is studied.

It helps the office understand:

• do other car loans exist
• whether they are repaid
• whether there were delays with payments and the like

The collection of such data helps to fully appreciate the solvency of the future client.

Having collected all the information and analyzing it, Lombard decides: whether an agreement will be concluded on a cash loan secured by road transport and under what conditions. If the solution is positive, after not a long time the client can receive a stipulated loan amount.

In any of the similar type of contracts, it will be written that after the end of the term of the loan action of the contract, the borrower who did not pay the agreed amount in full and did not fulfill all the contractual conditions, deprived of its vehicle by meeting the requirements of Lombard registered in the contract by selling the automotive.

The car is put up for sale a few months after the termination of the borrower of mandatory payments.

Methods for selling cars by autolbard

The act of purchase - sales of cars is carried out either by intermediaries or on specialized auctions, also called public trading.

The declared price of the vehicle at auction will, necessarily include the cost of pawnshop. Often, they can range about 60% of the car's cost declared in the market.

When the sale is engaged in the mediator, the car is put up for sale at a market price. He, in turn, receives a stipulated percentage of the deal.

What cars auto barrird does not accept secured

It is easy to assume that not every car can be accepted as collateral. First of all, these are cars, the technical condition of which does not meet the established requirements, exposed restrictions on the year of issue.

In addition, if the machine has alienation constraints, is under tax arrest or secured in another financial institution, the autolobard will refuse to provide its services.

Certain problems may arise from those owners of the car, which use the vehicle by proxy - only a person who issued you a power of attorney can issue a transaction with the battalion.

Very carefully checked the legal side of the state of the car:

• is it not in the hijack
• do the numbers on the details of the machine itself are coincided with those indicated in the documents,
• the correctness of the execution of all documents

The borrower will need to provide a passport and identification code (their personal and their spouse or spouse), marriage documents. Mandatory moment is the provision of a certificate of registration of those. funds.

Profi Tips: What to pay attention to the conclusion of the contract

Which of the auto bargrades would not be chosen not to be superfluous to be a thorough study of the contract, it is best to take advantage of an experienced expert with knowledge not only a legal aspect, but also banking.

Sometimes the company has more importance in such matters, rather than legal. After all, the harvesting organizers perfectly understand that the attractive side of their services is the ability to take money without long explanations of the reasons.

A lawyer will easier to find items in which the conditions are stipulated in the hidden form, which will allow pawnshop to position the deal as invalid or commit some favorable unlawful actions for them.

If you do not really trust the auto bargains, then a person with legal education will be easier to make the right choice of another financial institution, i.e. Bank, ready to issue a loan secured by a car.