As part of the state program “Family Car”, Russians have the opportunity to save profitably and purchase any modification of a car produced by the LADA automaker with a 10% discount on its official price. Thus, like any other model, Lada Vesta, for example, will cost much less on credit under the state program, which is important for family buyers.
Expert opinion
Anna
Automotive lawyer with 10 years of experience!
Please note that obtaining a preferential car loan is possible without making an initial deposit. You can also get a loan against purchased insurance.
The essence of the program
“Family Car” and “First Car” are two related programs that were launched by Decree of the Russian Government (No. 364) to provide citizens with the opportunity to purchase vehicles on credit at a discount. The mechanism works as follows:
- The bank provides the borrower with a car loan at a discount of 10% or 25% (depending on the region of the agreement and the car model).
- The state reimburses the credit institution for lost income during the program.
The essence of this initiative is to encourage the country's population to use the products of Russian automobile manufacturers. At the initial stages, the total volume of financial investments amounted to 1.5 billion rubles. In 2022, funding increased to 5 billion rubles. The Government of the Russian Federation does not establish any clear duration of the program, since it is extended annually depending on how effective the initiative is.
Loan "Loan for the purchase of a car" Gazprombank, Lit. No. 354
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up to 5 million
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Buying a Lada Vesta in installments
Some car dealers offer interest-free installments for LADA Vesta. It is also implemented through cooperation with banking organizations. For example, the official AvtoVAZ dealer AZINO AVTO has an installment plan for 3 years. The borrower is encouraged to insure the car against theft and damage. Also, an insurance contract guaranteeing the safety of LADA and voluntary insurance implemented by Sovcombank, as well as its partner companies, are issued for the entire period.
If a person agrees to these types of policies, the rate will be 10.25% per annum. The purchase is made for an amount not exceeding RUB 1,000,000. A deposit of 40% is required. Citizens of the Russian Federation aged from 20 to 54/59 (affected by the gender of the buyer) who have a permanent job and at least 4 months of experience can count on the program. LADA Vesta becomes collateral.
Unofficial dealers also have their own conditions:
- annual rate – from 1.90%;
- contribution – 0-50%;
- amount – up to 1 million rubles;
- car loan term – up to 3 years;
- additional discounts and accessories are provided, including tires, fuel (free), etc.;
- discounts;
- CASCO – at the discretion of the client;
- registration if you have a passport, 2-personal income tax, driver's license, work book.
How does the state program “Family Car” work?
Under the terms of the program, banks working in the field of car loans provide a discount on the cost of the car when drawing up contracts with borrowers. Thus, citizens can buy vehicles on credit on more favorable terms, since the initial price of the car is lower than on the market.
One of the main requirements is to attract credit funds to purchase a car. Between the manufacturer and the buyer there must be an intermediary - a credit institution that buys the vehicle, which becomes the subject of a credit agreement.
The state program “Family Car” received this name due to the category of the potential borrower. The title borrower is a representative of a family that has officially registered the marriage relationship and is raising minor children - two or more children.
Trade-in
Another way to become the owner of a LADA Vesta is to get rid of your old car.
This implies a trade-in scheme when a used car is exchanged for a new one. The service is provided by car dealerships. Having chosen the model you like, you leave your used car to the dealer. It is assessed, its technical condition is diagnosed, and the cost is determined. The amount received is deducted from the price of the new LADA Vesta. Additional payment of the difference is made through a classic bank loan or installment plan. Thus, you can save time by avoiding searching for buyers, negotiations with “gray dealers”, private buyers, and car demonstrations. But Trade-in has a drawback - a loss of 15-20% of the market value of a used vehicle. Sometimes car dealerships even agree to accept damaged cars.
If a citizen is not satisfied with the price, he can refuse the service by paying for the diagnostics. But if you agree to the deal, the borrower, after all the formalities, leaves in the new LADA Vesta, and the dealer takes on all the hassle of deregistering the car and completing the necessary documentation. Trade-in is also used because the seller of an old vehicle is deprived of the risks associated with independent sale.
Which banks participate in the program?
Initially, the legislator planned to extend the conditions to all banks operating with state participation, then gradually move to the commercial segment. By 2022, some credit institutions dropped out of the program: Sberbank several times suspended and resumed issuing preferential car loans through its subsidiary Cetelem Bank. Currently, the promotion is not valid at the first bank of the country, and there is no information about its subsequent resumption. You can get a discount when applying for a car loan by contacting the following banks:
Loan “Loan to buy a car online” Gazprombank, Lit. No. 354
from 3.9%
per annum
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- VTB,
- Volkswagen Bank RUS,
- Sovcombank.
These are large credit organizations that have offices and representative offices in the regions of Russia. The most effective way to request a service is to interact with a car dealership. Each salon has partner banks through which the program is implemented, but the main participants are indicated in the list above. It is through these credit organizations that most of the transactions for obtaining preferential car loans go through.
Car models
Citizens who want to become owners of LADA cars at a discount should take into account that the preferential price applies to cars whose cost does not exceed 1 million rubles, weighing up to 3.5 tons. However, only new cars produced in 2020-2021 are not included in the program.
AVTOVAZ included the following models in the list of preferential cars:
- Lada Vesta on credit
- Lada Vesta sport on credit
- Lada Vesta Cross on credit
- Lada Vesta SW on credit
- Lada Niva on credit
- Lada Vesta SW Cross on credit
- Lada XRAY on credit
- Lada XRAY Cross on credit
- Lada Granta on credit
- Lada Granta Liftback on credit
- Lada Granta Universal on credit
- Lada Granta Hatchback on credit
- Lada Granta Сross on credit
- Lada Largus on credit
- Lada Largus Cross on credit
- Lada Largus Van on credit
- Lada Niva Legend 3dv on credit
- Lada Niva Legend 5door on credit
List of cars under the Family Car program 2022
On preferential terms, you can purchase only domestically produced cars: vehicles must be manufactured in Russia. This includes the purchase of vehicles powered by internal combustion engines (ICE) and electric vehicles. The complete list is as follows:
- Hyundai Creta.
- GAZelle NEXT.
- Hyundai Solaris.
- GAZelle Business.
- Kia Rio.
- GAZ Sobol.
- Lada (4x4; Granta; Largus; Xray; Vesta).
- UAZ (Hunter; Patriot; Pickup; Pro; 3303; 3741; 3909; 3962; 2206).
- Volkswagen Polo.
- Chevrolet Niva.
- Skoda Rapid.
- Renault (Arkana; Logan; Sandero; Duster; Kaptur).
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These vehicles are eligible for the program, which also applies to electric vehicles. The maximum cost of a car is 1.5 million rubles. Release date: no earlier than December 1, 2019. Considering that this type of vehicle has not yet become widespread in Russia, applications for their purchase amount to a meager number.
The program is federal, so it works in all regions of the country. At the same time, the conditions for preferential lending may vary depending on the region: borrowers applying for a loan in the Far Eastern Federal District are given a discount of 25%, residents of all other regions can count on a discount of 10% of the cost of the car. Electric cars are eligible for a 25% discount regardless of the region where the loan agreement is issued.
Requirements for borrowers
The system of requirements is established by the bank participating in the program. The state puts forward the main condition: the borrower must be officially married and raise minor children. Other requirements depend on the policy of the credit institution. The list in almost every bank looks something like this:
- Citizenship of the Russian Federation.
- Age limit: 18-65 years (the maximum age limit may be increased at the discretion of the credit institution).
- Requirements for work experience: from 1 year (total) and from 3 months (current).
- Availability of official income, which is documented.
Some banks set requirements for the amount of permanent income. For example, at VTB the minimum income should not be less than 20 thousand rubles per month. Taking this into account, it can be summarized that “Family Car” is a standard loan program in terms of the requirements for borrowers.
Another important condition is the absence of valid loan agreements for the purchase of a car. The lender may also indicate in the agreement a ban on issuing car loans in third-party banks after the borrower takes advantage of the preferential program. A family car with one child has become available at the beginning of 2022: previously, preferential car loans were available only to large families.
Required documents
A standard package of documents is used:
- passport of a citizen of the Russian Federation,
- driver's license,
- certificate in form 2-NDFL or certificate in bank form.
If the fact of having children is not recorded in the passport, an original birth certificate for each child is additionally provided.
Some banks can lend to the population without confirming the presence of regular income. In this case, the interest rate will be higher. Therefore, it is recommended, whenever possible, to conclude a transaction with a complete package of documents. The “First Family Car” promotion involves the transfer of a vehicle as collateral to a credit institution.
Banks partners
On the territory of the Russian Federation, there are quite a large number of financial institutions (full list here - https://familyavtomobil.rf/banki-uchastniki/) that support the government program of assistance in car loans.
The most famous of them are:
1. VTB
2. Rusfinance Bank LLC
3. Cetelem Bank LLC
4. PJSC Sovcombank
Requirements for borrowers in different financial institutions are somewhat different. However, we can highlight the main points present in almost each of them:
— Mandatory citizenship of the Russian Federation
— Availability of permanent or temporary registration in the region where the loan is issued
— Age range from 21 to 65 years
— Official employment of at least a year of total work experience and at least 3 months at the last place of employment
— The borrower’s official average monthly income is at least 10,000 rubles
— Average monthly income for all family members – at least 8,000 rubles per person
— No bad credit history
— No children under 6 months (if the car loan is taken out by a woman)
Expert opinion
Victoria
Expert in the field of auto lending.
Please note that when taking into account age limits, at the time of full repayment of the car loan, the borrower must not cross the 65-year mark.
How to use the Family Car program?
If a potential borrower meets the requirements described above (is married and has minor children), then you can take advantage of the opportunity to receive benefits by contacting official dealers, or directly to a credit institution.
First option
The dealership will offer the buyer:
- fill out an application,
- provide documents
- wait for the bank's decision.
One dealership can have several partner banks at the same time, and you can submit an application to each of them. From the point of view of saving time, this method is more acceptable than contacting a bank. Moreover, the car dealership can help you get a discount by providing the necessary legal advice.
Second option
The client contacts the bank directly, where he is offered to choose a car for concluding a loan agreement.
The reverse mechanism works here:
- the bank makes a deal
- according to its terms, he buys a car at a partner dealership with the subsequent transfer of the vehicle into ownership of the borrower.
No government agencies are directly involved in this chain. The borrower takes out the most ordinary car loan, which the lending institution may well refuse. The state program does not guarantee that every application will receive a positive decision, so not all citizens can count on participating in the program.
Required Documentation
The list of documents required to participate in the state preferential car loan program is similar in many banks. There are only a few differences between different financial institutions.
Popular banks
For example, to contact VTB Bank you will need:
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To apply to Rusfinance Bank LLC, you must prepare
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Cetelem Bank LLC requires at least:
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Before contacting PJSC Sovcombank, you should prepare
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The procedure for obtaining a LADA car loan under the state program
Applying for a loan under a preferential state program is available to every citizen of the Russian Federation who meets the stated requirements. In this case, the procedure provides for a set of certain actions.
Stages of registration:
- Together with the salon manager, selection of a car that meets the requirements of the state program;
- Preliminary calculation of lending conditions under the state program. This stage takes place at the bank, where the credit expert announces the terms and amounts of payments. For the convenience of clients, the websites of many banks provide special programs that allow them to independently calculate and analyze available offers;
- Providing the creditor bank with the necessary documents and filling out an application form for a preferential loan;
- The bank checks the provided data and credit history, after which a final decision is made;
- If the result is positive, the purchase and sale agreement is concluded. If Trade In is provided, an additional agreement (assignment agreement) is signed;
- Registration of a CASCO policy;
- Transfer of the first installment to the bank;
- Concluding a loan agreement.
A participant in the state program can pick up a car after funds have been received in the account of the seller organization. Loan funds are usually transferred the next day after completing the entire procedure. Government subsidy every other day.
Discounts on Lada under several government programs
It is impossible to simultaneously take advantage of discounts on the purchase of LADA within the framework of two programs “First Car” and “Family Car”. If the buyer falls under both categories of persons to whom preferential lending is available, then he can choose only one of the programs.
The “First Car” proposal is also incompatible with the state recycling program. One of the conditions provides for the first purchase of LADA.
The discount provided by the Family Car subsidy cannot be combined with recycling. Both state preferential lending programs can only be used as independent products, without being combined with any other subsidies provided by the state.
Support at a disadvantage
According to the Association of European Businesses, the market will end 2022 with a decline of 23.9%, and the number of new cars sold will be 1,339,000 units.
Russian Minister of Industry and Trade Denis Manturov, in a September interview with Izvestia, believed that the decline would be even more serious. The official noted that despite the support for the car market, due to the pandemic, the demand for cars in 2022 will fall by 25–30% compared to 2019.
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— Of course, we will leave with a minus by the end of the year in terms of the auto industry. In the market, I think the decline will be about 25–30%; in production, the situation is better due to the recovery trend in orders for trucks, light commercial vehicles, and buses. Bus production is at almost 100% capacity by the end of this year. This applies to both the production sites of KamAZ and the GAZ Group,” the minister noted.
And yet there are those who give a slightly more optimistic forecast. The deferred demand has not yet been fully satisfied, says Sergei Tselikov, director of the analytical agency Autostat.
— Over the 10 months of this year, the decline was 12.1%. The next two months will not move this figure down, but a little up - quite realistically. The weakened ruble is pushing people to save their savings, and car prices have not yet fully recovered from the fall of the ruble,” Tselikov told Izvestia.
Does the participant have to pay taxes on government assistance?
We are talking about a 10% or 25% payment for a program participant. Let's illustrate this with an example:
The cost of the car is 1 million rubles, the down payment for the car is 200 thousand rubles, of which an individual will pay only 100 thousand rubles. The subsidy from the state will be 100 thousand rubles:
1 million rubles x 10% = 100 thousand rubles.
Despite the fact that 100 thousand rubles is a free subsidy, tax is not withheld or transferred from it.
The fact is that the Government of the Russian Federation made “retrospective” changes to clause 37.3 of Art. 217 Tax Code of the Russian Federation.
This means that partial payment of the down payment on a car loan is not subject to personal income tax. Therefore, a citizen should not submit a declaration in form 3-NDFL to the tax office.
Innovations for 2022
The resumption of the program is an obvious step from the state, since not every borrower agrees to pay the bank 14-17.5 per annum for 36-60 months. At the same time, in 2022 the state. The program is undergoing some changes. All adjustments are reflected in Decree of the Government of the Russian Federation No. 808 of July 7, 2022 and No. 870 of July 26, 2018.
| Conditions | 2019 | 2020 |
| Loan currency | The loan is issued only in national monetary units. The main goal of the program is to stimulate domestic turnover and reduce the currency risks of citizens. | |
| Subsidy amount | 10% | 10% |
| Personal income tax | Payment required | No payment required |
| Credit term | Maximum 3 years | From 3 to 5 years |
| Subsidizing interest rates | The state subsidized part of the loan rate. In 2022, car loan rates ranged from 5.7% and reached 8.7%. | Subsidies have been cancelled. The maximum loan rate can reach 17%. |
| Car value restrictions | 1.40 million rub. | 1.45 million rubles. |
| Vehicle requirements | Assembly on the territory of the Russian Federation. At the time of signing the loan agreement, the vehicle should not be owned by an individual. persons and be a government official. accounting | |
Loan under the state program - example of calculation
An example of calculating a preferential car loan for a Lada Vesta car, cost 428,000 rubles. (price includes all car dealer discounts)
- Cost of the car: 428,000 rubles.
- Loan RUB 328,000.00 for 12 months at 12% per annum. Annuity payment.
- Monthly payment amount: RUB 29,142.40.
- Total amount of payments: RUB 349,708.83.
- Overpayment for the loan: RUB 21,708.83. or 6.62% of the loan amount.
- Start of payments: January 2021
- End of payments: December 2021
How to save on a car loan?
Each person has their own circumstances and needs: some have a bad credit history or unofficial income, some need a loan without a down payment, and sometimes a car is purchased by a person of retirement age - all this must be taken into account when selecting a lending program.
Our car dealership has been working with the largest banks in Russia for more than 16 years. What does this give?
On average, our clients receive an interest rate that is 3-5% lower than when contacting a bank directly, and the probability of car loan approval reaches 93-95%.
If you don’t have time to study all the programs and intricacies of banks, call our car dealership or send an application, and we will select a car loan taking into account your specific life situation.
Is it possible to get a 10% discount without taking out a loan?
The considered government subsidy programs do not provide for a discount when paying in cash for a purchased car. If the future car owner is able to pay the full cost of the car at once, but wants to take advantage of the discount, then only the following option is possible.
A loan is issued with an initial payment of 85%, 10% is added according to the program. Loan terms typically provide for early repayment at any time. If the agreement does not provide otherwise, then, for example, after 3 days you can close the loan without overpaying practically anything.
In this case, it should be remembered that when providing any car loan, a mandatory condition for banks is to issue CASCO insurance for a year. But, according to the law, within 5 days the borrower can return the funds paid for the policy.
By the way, life insurance offered by the bank reduces the interest on the loan. And if the amount, as in the case discussed above, is small, then the insurance is minimal. And if the loan is repaid ahead of schedule, it will be recalculated.
