For those who want to own a vehicle, auto loans are very important and are offered by different banks with varying interest rates and terms. Especially as vehicle prices have risen recently, the number of people seeking auto loans has increased.
How to Obtain a Vehicle Loan?
When buyers of new or used vehicles do not have sufficient cash, they often turn to vehicle loans. A vehicle loan generally means the bank pays for the vehicle and holds the vehicle as collateral until the debt is fully repaid. Loans are available not only for new vehicles but also for certain used vehicles up to a specified age. Requirements to obtain a vehicle loan vary by bank.
Public Banks That Offer Vehicle Loans
As with many loan types, public banks usually offer competitive interest rates for vehicle loans. VakıfBank provides loans for vehicle purchases with terms up to 48 months. The bank offers financing up to the vehicle’s insurance value of 120,000 TRY and also provides options for used cars. For vehicles no older than five years, the loan term can extend up to 60 months. For vehicles aged between five and eight years, the maximum term is 36 months. A quarterly payment option makes it easier for some buyers to manage repayments. It is important to note that vehicle loans, like mortgage loans, are not always issued for the full value of the vehicle. Typically, banks finance up to 70% of the vehicle’s value for new cars and around 50% for used cars.
Ziraat Bank’s vehicle loan offers terms up to 60 months and uses an interest rate starting at 0.89%. The bank provides financing for new cars and for used cars up to five years old, usually covering up to 75% of the sale price rather than the full amount. As the term length increases, the effective interest charges may also rise.
Halkbank Vehicle Loan: Halkbank stands out with options that include a three-month non-payment period followed by equal monthly installments. Its stated interest rate is 0.94%. The maximum loan amount is set at 200,000 TRY with terms up to 60 months; however, for loan applications up to 120,000 TRY, the term is limited to 48 months. For used vehicles, Halkbank typically finances up to five years of age, and the percentage of the vehicle value that can be financed may be reduced for secondhand purchases.
Private Banks That Offer Vehicle Loans
DenizBank Vehicle Loan: DenizBank is notable for higher financing limits and can provide loans up to 150,000 TRY even for used cars. The bank typically finances up to 70% of the invoice value for new vehicles and around 50% for used ones. Its listed interest rate is 1.21%. Fixed installment options are available, and applications can be made at branches or via the mobile app.
Akbank Vehicle Loan: Akbank requires proof of income to grant a vehicle loan; without income documentation, it is generally not possible to obtain financing. When applicants meet the necessary conditions, loans are available for both new and used vehicles with terms up to 60 months. Interest rates start around 1.10% monthly and vary depending on term length. Applications can be made through internet banking or at branch locations.