The new credit program “Comfort +”
Toyota is launching a new credit program “Comfort+” in the Russian market. This financial product features low monthly payments 1 and a guarantee to buy the car back 2. It gives customers more opportunities in today’s economic environment and certainty about their financial future.
The first vehicle available under the Comfort+ program will be the most popular mid-sized crossover model in Russia, the Toyota RAV4. In 2020, 29,723 customers opted for this model, which enabled the company to beat last year’s results by 29.3% and achieve its best sales result in the last six years. Thanks to the “Comfort+” program, the crossover will become more affordable for customers who have been thinking about buying a car but couldn’t afford a loan on current terms.
The program features a low monthly payment of 9,700 rubles,3 which allows the customer to freely plan their expenses. Now the buyer who is not ready to give a significant portion of income on large monthly payments, or has an additional financial burden, gets the opportunity to buy a new car in the desired package on comfortable conditions.
This credit program is designed for three years. The cost of the car is divided into a down payment of 20%, monthly payments and the last residual payment, the maximum amount of which is 60% of the total cost.
By the deadline for making the residual payment, the client can choose one of three options. In the first case, he can repay the loan on his own and continue to own the car. In the second case, he will be able to choose another model of Toyota. For this purpose, the official dealer will repurchase his car at a guaranteed repurchase value established when the customer enters into an agreement with the official dealer for the repurchase of the car. The amount received will be used to repay the client’s debt to the bank, and the difference will be used as a down payment for the new purchase.
In the third case, the client can refuse further possession of the car, and it will be repurchased by the official dealer at a guaranteed repurchase value set out in the repurchase agreement, and the amount received will be used to repay the loan. Customer signs an agreement with the dealer for the repurchase of the car, which specifies the requirements and conditions of the repurchase, including the mandatory service car at an official dealer and the limit of mileage of 80 thousand kilometers.
The amount of the guaranteed minimum repurchase value of the car in the “Comfort +” is 70% of the value of the car, which is higher than the maximum amount of the residual payment, so the owner does not need to worry about the fact that he can not repay your loan or spend time on the sale of the car.
Buy a Toyota RAV4 with the new financial tool can be in all official Toyota dealers in Russia.
1 Compared to the Bank’s program with annuity payments at the same down payment, loan term and cost a / m
2 Repurchase guarantee is a service provided by the official Dealer to the client, who has concluded an agreement with the Dealer on the repurchase of the vehicle. In the agreement, concluded between the client and the Dealer, the requirements to the car, including the requirements to the mileage, service of the car and other conditions of repurchase of the car are established. Guarantee of car repurchase at the end of credit period is provided subject to the client’s compliance with the terms of the repurchase agreement.
Monthly payment under the loan agreement is indicated according to the terms and conditions of the credit program “Comfort+Rav4” for the purchase of a Toyota Rav4 at the cost of 1,929,000 rubles, on the condition of: making a down payment (hereinafter – MP) in the amount of 964,500 rubles, the balance payment (hereinafter – “CP”) in the amount of 964,500 rubles; term of the loan of 36 months; annual interest rate of 12%.
The amount of monthly payment is rounded upwards. Credit for the credit program “Comfort + Rav4” is carried out on the following conditions: PC at a rate of 20% or more of the value of the car (hereinafter – the “car”), the term of the loan – 36 months, the interest rate of 12% per annum, the balance payment may be from 20% to 60% of the value of the car. Currency of the loan – Russian rubles. The minimum loan amount is 20% of the value of the car, but not less than 300 000 rubles. Mandatory conditions: insurance purchased by a / m on program Hull Insurance and transfer to the pledge of acquired car in accordance with the terms of credit Bank.
What you need to know about guaranteed car repurchase
In recent years the automobile world has encountered such a highly profitable service as a guaranteed buy-back of the automobile, or “Buy-back”.
Since not everyone knows the key nuances of this program, this article aims to provide car owners with important information on what it is and how to use it to their advantage. This information with the evaluations and recommendations from both experts and car owners who have already used this service, will certainly help those who are only planning to do so.
What is Buy-back
To begin with, it is necessary to consider in detail, with important details, what essentially is a program of car crediting “Car Buy-back”, or “Buy-back”. Different domestic banks use their own names with respect to this program, differing from each other. In particular, the terms “deferred repayment”, “residual value guarantee”, “deferred payment” as well as “residual payment” and “Balloon” are used.
In its essence, this program is a variety of the loan familiar to many of us, which is granted, most often for a period of one to three years. However, in this case, the idea is that the client decides to buy a new car, surrenders the old one as collateral, and gets a new car with a bank loan.
The loan amounts are identical to those provided by the standard lending programs. The purchase of a car, most often, is based on one of the car dealers that have an agreement with this bank. The amount of the down payment varies, often in the range 15-50% of the price of the car, depending on which bank the client is dealing with and what his financial capabilities.
In the format of this program, their customers:
- Make a monthly payment on the car until they have paid off the entire cost of the car.
- In the last month, the client has to pay the rest of the debt. It is called a deferred payment, which usually amounts to 20-55% of the value of the vehicle.
If the amount from the sale of the car exceeds the amount of the debt (which is not uncommon), the client has the right to use the resulting balance at his discretion. At the same time the type of residual payment repayment is chosen by the client. He can, in particular, pay the balance with his own money, or by selling a car through a car dealership, or finally repay his debt by refinancing the remainder of the loan. If the client does not want to part with your car, he has the right to keep the car after repaying the debt.
Its differences from the loan
As you can see, the program of car repurchase resembles the usual loan. The key difference can be considered the final procedure of credit closing. For the borrower it is very simple. The entire amount of the last payment he makes to the account or card received from the bank, with the help of which the credit was paid each month. Also, he should get a written document – the bank’s confirmation that the credit is repaid in full and there are no claims to the borrower, that is, the car ceased to be an object of collateral. If the client wants to close the credit in advance, he has to notify the bank in advance.
Where can you get such a loan
Guaranteed repurchase of your own car in the abovementioned algorithm is possible only through an official dealer with a loan through banks that have an appropriate license for such operations. It is easy to find out which dealer and bank provide such a repurchase opportunity, using the appropriate special websites or through a database of domestic car dealers and banks.
All the conditions of what format will be the sale of the car through the car dealer pre-specified in two ways through:
- Agreement of sale and purchase.
- The repurchase agreement.
In particular, sometimes it is practiced the issue of technical service (maintenance of the car) exclusively at the service base of the official dealer. When the car is sold through a dealer, it is based on a sale-purchase agreement: in this case the salon acts as a buyer and the client as a seller. When the contract is signed, the money is transferred, in the amount of the outstanding loan balance.
Close the loan when the money is received on the account of the borrower. The transfer of the acquired technical means to its new owner takes place with the help of an agreement. The minimum down payment is usually 10% of the borrower’s personal funds from the price of the car, and the remaining payment is often determined in the range of 20 to 55%.
List of documents
A list of specific documents for the application of the program “Guaranteed car buyback” in each case determines the client’s contract with the official dealer.
Advantages and disadvantages
The key advantage of the program is a real opportunity to buy a new car at a profit, while selling the previous car. It is especially beneficial for those who have decided to change their car every 2-3 years. But there is a disadvantage! So, it is not excluded that while making “reverse deal” according to this scheme car dealer will significantly decrease car price. Thanks for your attention!