Car loans are secured or unsecured loans provided to retail customers for the purpose of purchase a new or used car. Car loans can be secured or unsecured (backed or non-backed by a collateral). Used cars private purchases are financed as a rule with unsecured loans, while the purchase of new cars - via secured loans with the car used as the loan collateral. In terms of repayment, car loans are normally installment loans (i.e. repaid in equal installments until the loan is paid off at the end of its term).
Auto loans can be used to purchase either new or used vehicles. The term of an auto loan typically ranges from 24 months to 60 months, though longer loans with 72 or 84 months are becoming increasingly common. Most lenders limit the term lengths to 48 or 60 months for older car purchases, as used cars are riskier to finance. This is because car value generally declines over time, unlike home value. Accordingly, if the car being financed is also used as collateral, lenders need to make sure that it will be worth enough to cover their losses if the borrower defaults.
Because of the rapid depreciation of car value, shorter loan terms and larger down payments are most advisable for auto loans. For an older used car, it's quite easy for borrowers to find themselves "upside-down"—meaning that they owe more on their loan than their car is currently worth. To avoid this situation, it's important to not take out money with too long of a repayment schedule, and to evaluate how quickly your car will depreciate. The consequences of defaulting on a car loan can be severe, as many loan servicers will require that the loan is repaid even after default and asset forfeiture.
If you're a new or an existing Premier customer and you're aged 18 or over, you can apply for a loan of USD 50,000 or more. To be eligible, you must hold Alto Trust Bank BVI accounts and investments with a minimum relationship balance of USD 500,000
The maximum age at the end of the term for a capital repayment plan is 75 For joint applications it's the age of the oldest applicant.
This product may not be available in all countries.Apply