The ability to purchase a collateral vehicle looks very tempting as a result of a lower cost, which its owner is set. But many people fear to apply such a scheme, as they believe that in this case the risks outweigh the benefits from a low price. How profitable is this acquisition and is it reliable? About this further in the article.

Mortgage cars that it is

The mortgage property is the property withdrawn by the bank from the borrower for non-payment of debts on a loan, or which is sold with the consent of the debtor. Therefore, the acquisition of a mortgage vehicle can turn into an obsessive idea, since it allows you to save a substantial soute from the family budget. Such an idea all the time will be heated by emerging sufficiently profitable proposals, and that most importantly, quite real.

Sale of mortgage cars

True, when selling a mortgage property, there is a risk to face a large number of pitfalls that can easily deprive the buyer of rights to purchased property. In order to purchase a car in a bank pledge, you should know all the subtleties that are associated with this event.

Moreover, the most favorable sentences, most often, the most insidious pitfalls. You can purchase a mortgage car, both at the bank and directly at the borrower, if that for any reason can not pay off credit. In this case, the borrower and the bank do not conflict, but on the contrary, go towards each other, the bank gives "good" for the sale of collateral. As a result, part of the revenue will be applied to repay debt to the bank. If some amount remains, it will get to the debtor. The bank, at the same time, can provide assistance to the borrower, offering the purchase of a pledge vehicle through its channels.

When the buyer is found, the contract "purchase and sale" must approve the bank. Without the life of the latter, as a pledgee, such a deal cannot take place.

Site of mortgage cars

In recent years sites and newspapers where you can find information about the sale of housing and cars publish more and more attractive offers. Special attention in these announcements causes the cost, which is sometimes 30-40 percent below the market. If you carefully understand this set of information, some part of these ads will be the usual techniques of companies to attract customers, but most of the proposals will be related to the sale of collateral on the cheap.

Secure property cars

If the contract "purchase and sale" of the car is carried out under the control of the bank, then such a deal is very beneficial to the buyer. This situation gives the bank the opportunity to repay the problem loan, as a result of which it will only welcome such a deal, but it will take its correctness under control, so that it will later not allow the borrower to challenge the deal, otherwise the bank will have to return the money to the buyer of pledge.

So, legal risks from the agreement carried out will be in fact to zero. The Bank has complete grounds to clear the register of the laid property due to the vehicle sold, and the buyer can make a car in its name without any problems. At the same time, if the buyer does not have enough money, the bank may arrange a loan.

Sale by banks of mortgage cars

Sometimes on the Internet and newspapers are announced ads in which the redemption of mortgage machines with the "assignment of debt" on the loan is stated. In this case, the sale of a mortgage car is provided by the initial borrower, when a certain amount of sale is negotiated along with an outstanding loan. A positive moment of such a scheme is the lack of initial expenses arising from the execution of a loan, in particular compulsory insurance, commission, and so on.

In this scheme, the acquisition of a mortgage car risks, of course, exist, but minimize, because the design of the transaction is made directly in bankwhere the legal purity of the transaction is carefully checked.

The negative side of this option to purchase a mortgage car is the need to prove its solvency to the new borrower. The disadvantage of this option is that interest and balance on the loan may exceed the cost of such used cars in the market.

In some cases, the risk justifies itself, but should not be reed only for good luck. Think several times before buying a car overcast. A safer purchase version of the collateral vehicle - the sale by banks of confiscated machines. Most of the collateral cars are forcibly withdrawn by banks from non-payers and are implemented without the knowledge of the car owner (borrower).

The main advantage of acquiring a confiscated car is its low cost. And the thing is that in some cases the car does not succeed in the first auction, and sometimes on the second. After such unsuccessful activities, the cost of the object is reduced by 25-30 percent. It also happens when the cost of the deposit reduces the bank itself, since certain problems are connected with a mortgage car. Then the bank deliberately makes a discount, and the buyer has a material interest to take on to solve these problems.

checking the collateral

To check the car for a loan or collateral, it is necessary to study all the signs that confirm the fact of finding a vehicle in pledge, namely:

1. Information about the bank or any other company issuing loans that are mentioned in the CASCO insurance policy. Such a mark is direct evidence that the acquired machine - credit and debt on it has not yet been canceled.
2. A copy of the car passport without providing the original. Get a duplicate car passport is quite simple. It is enough to submit in the traffic police a statement, where it is indicated that the passport is lost, and ask to give a copy of the copy.
   
3. Vehicle is sold through the minimum time interval after the acquisition. The car loan, as a rule, should be repaid for three years, so if the car you purchased was at the previous owner of less than three years, it is quite possible that it is pledged.
4. Machine purchased under the Commission agreement. It should alert you, and in the passport of the car there should be a record of this.
   
5. The informed cost of the vehicle. Before purchasing a car, it is necessary to study the cost of similar cars in the secondary market. If the price is too low, it is a clear reason to alert. Most likely, the car owner wants to "shove" the car in the shortest possible time.
6. No documentation for the purchase of a car. If the owner of the sold vehicle refuses to provide the contract of sale, it is quite possible that in this document there is evidence that the car is pledged.

But, even if there are no above listed signs, it is not an absolute guarantee that the car is completely pure legally. It may well be that the deposit on the vehicle is not concluded with the bank, but with a private person or pawnshop. In this case, check the existence of additional obligations is actually impossible.

The process of buying a pledge car

The process of acquiring a pledge car looks like this:

1. The owner of the car reports the bank about the desire to sell it and recognizes the balance of debt.
2. The buyer and the car owner draw up a sales contract, where it is necessary to specify the amount of the transaction.
3. Next, the buyer needs to pay off the amount of debt in the bank.
   
4. Then the owner of the car takes a receipt that indicates that the loan is repaid and he must nothing more. The bank issues the passport of the car to the owner in the hands.
5. The buyer gives the owner of the car the remaining difference.
6. The owner of the car gives the passport of the vehicle to the buyer.
7. The new owner puts an automatic record and draws up the required documents.

The buyer has the opportunity to re-bring debt on himself. In this case, you must provide the bank to the bank of the car passport and a certificate of account status. Financial organization reissues the debt on the loan on the new owner if its solvency is confirmed. In order to avoid problems, it is advisable to arrange this transaction through a lawyer. After that, the buyer will send a monthly amount for a loan to the bank account.

Useful advice

If you want to save money when purchasing a car, be extremely attentive. There is a risk to meet fraudsters that implement cars under arrest, stolen, unacceptable. It will not be superfluous to find out the credit history of the seller. If doubt, contact the car dealership, where you can not worry about the legal purity of the transaction. Do not hurry when choosing a vehicle. By purchasing a car at a favorable value, do not forget about its technical condition. Appeal to a qualified lawyer will help protect the deal.