State loan program "Family car": description, conditions

2024 Author: Erin Ralphs | [email protected]. Last modified: 2024-02-19 11:41

In July, a new lending program "Family Car" appeared in Russia, supported by the state. This program is intended for families with more than two children. Often, for them, buying a car is a necessary condition for a comfortable existence. But not everyone can afford such expenses. You can read about what the Family Car state program is and how to participate in it in this article.

Government car purchase programs

In 2009, for the first time, the state launched a program of preferential car loans. At that time, it concerned only domestic cars and gave a 10 percent discount on the purchase of a car. At that time, these measures were taken to increase purchasing power in the conditionseconomic crisis. To date, the state is funding two programs for buying cars:

• "The first car";
• Family car.

What is the essence of concessional lending? At the expense of budgetary funds, the state repays part of the payments provided for by the interest rate on the loan. Usually, state compensation is 2/3 of the profit that the bank receives for providing a loan, i.e., “overpayment” in excess of the amount of the car. Thus, by participating in the state program for preferential car loans, you practically do not overpay for a car, since the state takes care of this interest. The programs "First car" and "Family car" help to save from 40 to 100 thousand rubles. In May 2017, about 10 billion rubles were allocated for the purchase of new cars on preferential terms.

The First Car State Program

The First Car program is designed for those people who are going to purchase a vehicle for the first time. Any adult citizen who purchases a car worth no more than 1.4 million rubles can take part in the company. Participation in this program gives a discount of 10% of the total cost of the car. Thus, if you buy a car for 900 thousand rubles, then the subsidy from the state will be in the amount of 90 thousand rubles. In addition, program participants are exempt from paying personal income tax in the amount of 13% on the purchase of a car. In 2017, it was planned to purchase 350 thousand cars on preferential terms, and2018 sales plan not yet known.

Family Car Conditions

The state has another program in which hundreds of families have already taken part. The beginning of the Family Car program was in 2017, which showed that this campaign is a great success. On July 1, Decree of the Government of the Russian Federation No. 808 “On the provision of subsidies for the implementation of concessional lending programs” was issued, which spelled out the terms of the program. Participation in the loan on preferential terms gives buyers a 10 percent discount on the cost of the car. Very often, the Family Car program is confused with the Car for Large Families, which is designed for families with three or more children. To participate in the new campaign, it is enough to have two minor children.

According to statistics for 2017, the rate of car loans increased by 20%, which means that the program had a great stimulating effect on the market. Lending on preferential terms allows you to get not only a solid discount from a car dealer, but also a number of other benefits:

• An even bigger discount can be obtained if you trade-in your old car.
• Discounts on current promotions in car dealerships.
• Direct discount from partner.

Thanks to some promotions and discounts that can be combined with a 10% discount, the car becomes an affordable means of transportation for manyfamilies.

Which banks can I contact?

Not all banks issue loans under the Family Car program. Not all institutions that submitted applications were approved by the state. Therefore, before applying for a loan, you must carefully check the information about the bank in the registry. The following banks are currently participating in the program:

• VTB.
• Sberbank.
• "Bank of Moscow".
• "UniCredit".
• Rosselkhozbank.

The conditions of the program clearly spell out the condition: the interest rate on the loan should not be higher than 11.3%. The above banks have different conditions for loans, but in general, the average interest on a loan is 6-8%. Such comfortable conditions are explained by the fact that the organizations themselves are interested in participating in the program. The number of people buying cars through it is increasing. The first installment on the car must be at least 20% of the cost.

Loan program

How to buy a car under the Family Car Program? To do this, you need to choose a new car manufactured in 2017 or 2018 in a car dealership that takes part in the state program. After that, you need to choose the bank in which you want to get a loan. In it, you need to provide a standard set of documents: passport, driver's license, birth certificates of children and proof of solvency. As a rule, after a positive response from the bank, the moment comes when the contract for the sale of the car is signed. Before you sign it, you need to take note of some of the nuances:

• The purchased vehicle remains as a collateral for solvency for the duration of the loan repayment.
• Payment period cannot exceed three years.
• When applying for a loan, you will most likely be asked to sign a commitment not to take other car loans until the current one is repaid.

Which cars are covered by the state program?

Unfortunately, not all cars qualify for the program. What Family Car Vehicles Can I Buy?

• Only new cars from 2017-2018 are considered as possible participants in the program.
• The maximum cost of the car is 1.45 million rubles, taking into account the cost of insurance, which, as you know, is mandatory for new vehicles.
• The curb weight of the vehicle must not exceed 3.5 tons.
• The car must be produced in Russia.

The following cars fall under these conditions:

• All cars of domestic production: "Lada" and UAZ.
• Nissan Almera and Datsun, which are assembled on AvtoVAZ and LADA conveyors.
• Cars of Chinese brands that are produced at factories in Russia.
• All Russian-made foreign cars (Chevrolet Niva, Ford, Renault, Nissan, etc.).

As you can see, all cars that fall under the terms of concessional lending are produced in Russia. In this waythe state supports the growth of production and job creation.

Recipient Requirements

The Family Car State Program puts forward several requirements for those who decide to get a loan on favorable terms:

• A citizen of Russia must be of legal age.
• Having two or more minor children.
• The borrower must have a driver's license.
• After receiving a subsidy, a person is obliged not to take car loans until the full repayment of the borrowed amount.

These are the requirements put forward by the state. But banks may have their own conditions for granting a loan. To get the best interest rate, it is also recommended to prepare the following documents:

• Confirmation of solvency.
• Documents for movable or immovable property.
• It would also be helpful to enlist the support of a guarantor.

Other conditions

To receive a loan under the state programs “First Car” and “Family Car”, you must make a first installment of a minimum amount of 20% of the cost of the car. At the same time, the maximum loan term is no more than 36 months, for which the borrower must fully repay the entire amount. The maximum percentage that is taken into consideration for compensation by the state should not exceed 18%. Thus, the subsidy discount cannot be more than 6.7%. If a citizen fulfills all the requirements and conditions of the program, the state will reimburse him 10% of the cost of the car.

How to participate in the state program?

How to take part in the state program "Family Car"?

First you need to make sure that you meet all the requirements for a loan on favorable terms. If you are in doubt about any of the points, ask a bank employee for help.

Having prepared a package of necessary documents, you can apply directly to a bank that is accredited by the state to participate in the Family Car program.

If you want to save your time, you can go directly to the car dealership. As a rule, large car dealers already have well-established schemes of action and know which bank it is better to apply to. They can also provide additional discounts and bonuses, which is undoubtedly a big plus.

If the bank's decision is positive, then you will need to sign an agreement and wait until the bank transfers funds to the creditor's account.

All you have to do after that is to get the documents for the car, register it and transfer the documents for the car to the bank.

Customer Reviews

Since quite a number of people have already taken part in the Family Car program, you can find a lot of reviews on the Internet. At first glance, the state program for families with children seems to be very profitable: after all, the interest on the loan becomes much lower, and they even give a discount on the cost of the car. But there is one nuance that makes the purchase not so profitable.

The fact is that a prerequisite for the "Family Car" program iscar and life insurance for the entire term of the loan. The amount of life insurance with 50% payment for the cost of a car is about 35-40 thousand for two years. The lower the down payment, the higher the cost of insurance. Yes, and Casco is not a cheap pleasure. You will not be able to insure the car yourself, since all the “costs” and additional payments are already included in the final cost of the car. If you buy a car from a dealer (and it’s quite difficult to buy it in another way), then the amount of overpayment for insurance will be 15-30 thousand rubles.

There is another nuance that is not reported almost anywhere: you will need to pay personal income tax on the money that the state will return to you from the cost of the car. For example, if you buy a car worth 950 thousand rubles, and the state returns 95 thousand rubles from the purchase, then you will need to return 12,350 rubles of this money back to the treasury. Thus, your savings will be 83 thousand rubles. If you subtract insurance from this amount, it turns out that there were no real discounts. Why do people still apply for loans under the Family Car program? Still, hull and life insurance, albeit mandatory, are very useful conditions, especially for new and expensive cars. Without concessional lending, you would have to pay 130,000 more for the entire package. Therefore, the program is still beneficial for the residents of the country.

Results

If there are several children in the family, the need for a car increases significantly. Of course, the Family Car programs and"First Car" will not give you a 50% discount on the purchase of a vehicle. However, you can drop the final price a little and get a model with a richer configuration and with a lot of advantages. Like any other government benefit, the program has a number of conditions and requirements that must be met. But, having collected all the necessary documents and visiting the bank a couple of times more, you can get a benefit in the amount of 50 to 145 thousand rubles. A careful reading of the loan agreement will save you from many unpleasant surprises.