The economic crisis in Russia has significantly reduced the purchasing power of the population. As a result, the automobile industry also suffered - people are now much less likely to buy new cars, preferring used models. To support the economy, the Government of the Russian Federation has created several state programs that are designed to stimulate the acquisition of new cars. You can read more about state programs for buying a car in 2017 and in 2018 and their conditions in this article.
Buying a new car on favorable terms
For several years, programs for the purchase of cars have been operating in the Russian Federation. The state program for the purchase of a car in 2018 is possible in the form of preferential car loans or in the form of a subsidy. The first program is called “Own Business” and is valid for business owners, but only for cars of domestic production. The preferential car loan is also supported by the Family Car and First Car programs, which provide a subsidy of 10% of the cost of the car. Why were these programs developed? Due to the sanctions, the instability of foreign exchange and the worsening economic situation, people are buying less and less new cars. Meanwhile, families with several children and entrepreneurs, who need freight transport like air, especially need their own transport. The implementation of the programs has already yielded results: people have begun to actively buy cars on credit, and small businesses have somewhat strengthened their positions.
Terms of the program "own business"
The state program "Own business" for the purchase of a car started in 2017. Using this program, the government solved several problems at once: lack of demand for domestic cars and lack of support for small businesses. "Own business" is a leasing agreement, under which the buyer is given a discount of 10-12.5%. The discount is limited to 625 thousand rubles per car, but it still brings significant benefits to entrepreneurs. How is leasing different from a usual car loan? When buying a car on lease, you actually rent it and pay the monthly fee set by the company. At the end of the period, you can either return the car to the salon or redeem it. Leasing in some cases becomes much more profitable than a loan, because it provides an opportunity to save up to 30% of the cost of a car by returning it to the passenger compartment at the end. True, for this it is necessary to observe a number of conditions: apply for hull insurance, undergo maintenance on time and avoid emergency situations.
Who can take part
The owners of their own business, officially registered, as well as organizations (LLC) could become participants in the state program for the purchase of a car in 2017 “Family Car” on preferential terms. Also, quite strict requirements are put forward for participants:
- The income of the organization or individual entrepreneur should allow to pay off monthly payments throughout the entire term of the contract.
- The program is valid only for Russian-made cars in 2017 and 2018.
- Additionally, cars must be equipped with an ERA GLONASS.
- The credit history of the applicant must be good, otherwise there is a possibility that the bank will refuse to cooperate with him.
- The maximum leasing term is 3 years.
- The down payment should not be less than 10% of the cost of the car. A state subsidy may be included in this amount.
- The program applies only to new cars that have not yet been registered with any owner.
Terms of the state program for the purchase of a car "own business"
Participants of the “Do It Yourself” program receive a 10% discount on leasing, as well as an additional discount of 2.5 percent of the cost of the car. What needs to be done in order to take part in preferential leasing?
- Choose a suitable car from the list presented. In 2018, the Gazelle Next and Business, Ural Next, UAZ Patriot cars participate in the program.
- Then you need to choose a bank that offers the most favorable leasing terms. Make sure it supports the government program.
- After that, you need to send an application for a subsidy. The application is usually made directly at the bank, and you will need to present documents confirming your right to the benefit: an extract from the Unified Register of Entrepreneurs.
- After checking the credit history, the bank decides to approve or reject the application.
- In the case of a positive decision, it remains to sign the contract and start registering the car.
- When drawing up a leasing agreement, almost all banks require comprehensive insurance and compulsory motor liability insurance.
State program "Family car"
Another state program for buying a car in 2017 - “Family Car” - has become one of the most popular ways to purchase a car. It was launched back in 2015, but in the next few years it was extended only to domestic cars, which significantly limited the choice of vehicle. Since 2017, the government has expanded the list of possible participants, allowing the execution of a soft loan agreement also for foreign cars. Only parents of two or more minor children can participate in the program. What are the benefits of participating in the program? Firstly, the state guarantees a subsidy of 10% of the cost of a car. Secondly, participants are given the opportunity to take a loan on concessional terms. The rate does not exceed 17% per annum. In 2018, 7.5 billion rubles were allocated for the execution of the state program “Family Car”.
Conditions
The state program when buying a new car on credit is valid for Russian citizens who are eligible for the following conditions:
- Age from 18 to 65 years.
- The presence of two or more children under 18 years.
- Official employment and creditworthiness.
- Lack of purchases of other cars on credit over the past year.
- Ability to make a down payment of 15%.
- Permanent registration in the territory of the Russian Federation.
Banks that provide loans under the program themselves determine the loan rate for each participant. The cost of the loan is calculated based on the full amount (price of the car) and the amount of the subsidy. How to take part in the Family Car program? To do this, you need to choose a car and apply for participation in the state program. After all the formalities are settled, the owner must make a down payment and register the car in the traffic police. Then it remains only to conclude a loan agreement and pick up the keys to the car.
To participate in the program, you must provide a full package of documents that will confirm your right to receive a subsidy. In addition to the passport you will need: income statement and TIN. The bank will need them to confirm your creditworthiness. In addition, you will need to provide a work book or an agreement with the employer - without this, you simply will not be given a loan. The income should be higher than the monthly payment. If you are married or married, you must obtain the permission of the second spouse. To confirm the right of benefits, you must present the birth certificates of children or a record of them in the passport. These documents should be sufficient to participate in the program, however, some banks may request additional information.
List of makes and models
The list of cars of the state program for the purchase of cars in 2017 was significantly expanded. Currently, the following brands can be purchased under the Family Car program:
- Chevrolet passenger cars
- Citroen
- Ford Focus in basic trim levels;
- all domestic manufacturers: Lada, UAZ, GAZelle;
- Kia
- Mazda 3 Series;
- Hyundai Solaris;
- Mitsubishi Lancer
Thus, the list of state-subsidized cars includes the most popular and purchased cars. Their cost varies from 600 thousand to 1.5 million rubles, which allows you to choose an acceptable option for any family.
State program "First car"
Another program that helps you purchase your own vehicle is called First Car. In 2018, the state program for the purchase of a car was extended for at least a year. The name implies that it is aimed at young people who have never before owned a car. The state program allows you to apply for a car loan on preferential terms in the amount of 10% of the cost of the car. But in order to get such a discount, you must meet the following conditions:
- No cars should be registered to the applicant.
- The car was produced in Russia.
- The applicant must take a loan from the bank to buy a car.
- Only cars manufactured in 2018 are suitable for participation in the program.
The state program when buying a new car on credit is valid only for cars worth up to 1.5 million rubles. Accordingly, the size of the discount cannot exceed 150 thousand rubles. However, this money is a good discount, which can significantly reduce monthly payments. An important fact is the form of benefits: it is given in the form of a discount on a loan. Therefore, you do not receive any cash, it’s just that the bank lowers your credit rate on the amount borrowed by the state. In order to take part in the “First Car” program, you need to contact the dealership and find out about cars that are subject to the discount. But it’s better to hurry: the state allocates a limited number of quotas. If all of them were used at the beginning of the year, then it is likely that by May there will be no opportunity to receive a discount.
Pros and cons of state car loan programs
State programs for the purchase of cars attract many people. It is one thing to buy a car for 1.45 million rubles, and quite another with a discount of 110 thousand rubles. And there the dealer will add his discount and become even more profitable. What other benefits does government car lending have?
- Favorable loan conditions.
- A subsidy of 10% of the value of the car.
- In some regions, an additional discount of 10% is possible.
- A state subsidy is possible instead of a down payment, which significantly expands the ability to take a loan for many people.
- The dealer can include hull insurance in the price of the car.
But if you delve into the conditions of state programs, you can find many minuses.
- Not all banks participate in state programs. For 2018, partners are 21 banks.
- Limited model line of cars. For members of the program "their own business" is possible to buy only domestic cars. In the First Car and Family Car programs, only those cars that are produced in Russia take part.
- The state subsidy is subject to personal income tax. Therefore, when receiving money, do not forget to pay 13% of the amount to the tax.
- When buying a car you have to spend money on comprehensive insurance. Despite the fact that voluntary insurance is rarely issued for budget cars, most car dealerships put this as a prerequisite.
- A limited number of dealers participate in government programs.
- Often car dealerships try to make money on customers, offering disadvantageous conditions that negate the discount from the state.
Expert Advice
Buying a car on credit under the state program can both bring benefits and provide a headache for many years. It all depends on the literacy of the participant and his ability to properly use subsidies from the state. When buying a car on credit, car dealerships often put Casco clearance as a prerequisite.Suppose you took part in the Family Car program and received a discount of 140 thousand rubles. Most likely, all this money will go to cover insurance. You will win if you already wanted to arrange a hull.
In addition, the terms of the First and Family Car programs indicate that a loan is a prerequisite for participation. After all, the discount is given exactly on the interest rate. Also required is the first installment, which can range from 150 to 500 thousand. That is why credit under a preferential program may not be as attractive as it seems at first glance. Before visiting a car dealership, it’s better to recount everything more than once. A loan for a car is best taken not at car dealerships, but at a bank. After all, a consumer loan has an interest rate much lower. Do not forget about a careful study of the loan agreement, in which often there are completely unexpected points. If you plan to pay off the debt ahead of schedule, then make sure that you do not get a fine or penalty.
Summary
For several years, Russia has been running programs to support the demand for new cars. You can participate in one of the following programs:
- “Own business”;
- "First car";
- "Family car."
The privilege for the purchase of a car is possible in the form of subsidies or credit exemptions. In both cases, the discount rate does not exceed 12.5% and is valid only if there is a quota. You can learn about the possibility of participating in the state program directly from dealers and in bank branches. But getting a benefit is not so simple: for this you need to fulfill a number of conditions and provide a package of documents. When buying a car on credit under the state program, carefully consider your benefit - it may well turn out that instead of the promised discount of 50-150 thousand rubles, you, on the contrary, will go “minus” due to the imposed additional services.