Is it possible to use maternity capital to buy a car and how to spend the funds in different regions?

Is it possible to buy a car with maternity capital?

Bills are regularly submitted to the government for consideration, which offer the opportunity to use maternal capital to buy a car. This is due to the fact that many citizens need a vehicle, but cannot afford such a large purchase. But a law on buying a car with maternity capital has not yet been adopted at the federal level.

As before, maternity capital can only be used to purchase or build real estate, pay for children’s education, rehabilitate a disabled child, or increase a mother’s pension.

Officials who support the project argue that a car is not a luxury, but a must-have. The payment amount is enough to purchase a car, so you don’t have to take out a loan. The technique can be used to earn additional income, and experts also say that after the adoption of such changes, the number of certificate frauds will significantly decrease.

But the refusal to make such amendments is due to the following factors:

• When buying a car, parents satisfy their own needs, and not the desires and needs of their children;
• the car can be broken and destroyed, and there is also a possibility of it being stolen, so the family will lose the funds received;
• equipment becomes cheaper every year;
• if the car gets into an accident, the price of the property will drop sharply;
• scammers can leave a family without a car and money.

Therefore, only at the regional level, when issuing local maternity capital, do officials allow you to buy a car. But this is only possible in some regions of the Russian Federation.

It is also useful to read: How to apply for a loan for maternity capital

Step-by-step procedure for buying a car using maternity capital

The program, which received support at the local level, is implemented on similar principles, but has its own characteristics and differences:

1. Lack of uniform standards and limiting parameters - maternity capital for the purchase of a car starts from 50 thousand rubles and can reach 1 million rubles. However, most regions set a subsidy of about one hundred thousand rubles.
2. Depending on the characteristics of the region, legislators at the local level put forward their own conditions - the number of applications may be limited to a one-time transfer or multiple tranches.
3. The duration of residence makes it possible to highlight citizens permanently residing in the region, with registration in the region for a period of at least 3–5 years.
4. The possibilities for directing funds from the budget are wider. One of the popular areas is maternity capital for the purchase of a car, which is not available within the framework of federal capital.

When determining the rules that will allow you to allocate part of the budget funds to the purchase of a family car, you should take into account the features of the programs in the constituent entities of the Russian Federation. A significant difference is due to the fact that a family certificate from the regional or regional budget is presented as a social support program for families raising minor children. For this reason, the responsible body that monitors and regulates the implementation of local legislation is the social protection department, while the Pension Fund of the Russian Federation bears full responsibility for the proper implementation of the federal program.

Regional legislation is more flexible, which allows for faster adoption and implementation of local regulations and acts. The provisions on maternity capital are constantly modified, adjusted, canceled or supplemented. Before planning to purchase a car with partial use of funds from a family certificate, you must contact the nearest social security office at the address where the whole family lives.

Car selection

For holders of a regional family certificate, the first step to purchasing a car using budget funds will be selecting a car that meets the established criteria, as well as finding an owner who is prepared to wait for a long time until funds from the budget arrive in the bank account.

Since a long period passes from the moment an agreement is established until payment is received, during which the transaction is agreed upon with representatives of social security authorities, it is not easy to find a person willing to sell a car using maternity capital.

When selecting a car and discussing the terms of the deal with the seller, it is important to immediately warn that the family plans to buy the car using budget funds, and inform about the possible waiting period - about 2 months. Social security employees will need time to check documents and review the application in detail. The upcoming transaction must be checked for legal purity, and all documents submitted by parents are examined for authenticity and compliance with the parameters of a specific program implemented in a specific subject of the Federation.

It is also difficult to find the optimal car that meets the criteria set by the social insurance authorities. As a rule, a car purchased with the involvement of regional capital must meet the parameters of a family car in terms of capacity, functionality, and safety. It should be a spacious and inexpensive car that provides comfort and safety to passengers.

Collection of documents

The basis for sending money from the budget to purchase a car is an application submitted to a government agency accompanied by a package of documents. The decision on the possibility of using funds is made after a thorough study of the specific situation, which is why it is so important to prepare a comprehensive list indicating full compliance of the planned transaction with the criteria established in the region.

Citizens who own a certificate for maternal capital must submit the following list of papers along with the application:

• national passport;
• family certificate;
• car purchase agreement;
• registration documents for the vehicle (the title must already be reissued);
• if borrowed funds are raised, attach a targeted loan agreement, which sets out the details of the purchase of the car;
• a document with details for transferring funds from the budget to repay the loan in whole or in part;
• statement of account status and amount of credit debt;
• if a car is purchased from an individual, they prepare a document evidencing debt obligations to the seller (in this case, the purchase and sale is made with an installment plan).

Representatives of a government agency are given no more than 30 days to consider an application to purchase a car using maternity capital.

It is important to remember the peculiarity of registering property in the name of one of the official spouses - any acquisition during marriage refers to jointly acquired property. For this reason, registering a car in the name of a spouse does not mean that the car becomes her personal property. Since the law does not provide for the possibility of registration of vehicles with the traffic police by two owners at once, the purchase of a car is considered to be an act of trust of the mother, who has exercised the right to capital in the interests of all family members.

Payment with a certificate

As in the case of a federal certificate, the tranche is transferred from the local budget only after verification of the documents. The buyer and seller must agree on this requirement in advance and must necessarily record an indispensable condition on payment in installments.

After the family has submitted documentation for the disposal of family capital, it may take up to 2 months before the funds are actually credited. In addition to checking documents, employees of social protection authorities can check the compliance of the living conditions of minors with established standards, since in some regions it is possible to buy a car with maternity capital only after the housing has been recognized as appropriate.

The transfer of the remaining amount to the account of the seller or lender represents the final stage of the transaction using funds from the family capital. After the final settlement, the parents receive full rights to movable property.

Who can buy a car with capital?

Although each region has its own conditions for obtaining and using local capital, the general requirements are considered the same.

The following persons can receive funds to purchase a car:

• mother of the child;
• father, if the woman died or lost her rights to the children;
• guardians.

Usually, certain requirements are imposed on the car itself, so citizens have to choose only a domestically produced car. It is allowed to buy only a new car at a car dealership, and not from private individuals. You won’t be able to sell your car right away to get cash, so you’ll have to own it for at least 3 years. The car is registered as shared ownership, since initially the sum of money is intended to improve the lives of children, not parents.

Attention! In some regions, it is prohibited to use a local certificate to purchase a car if the family already has a car.

How to draw up a contract for the sale and purchase of a car using maternity capital?

The relevant law outlines in detail the procedure and rules for using state aid funds. The main requirement here is that funds are spent only in the interests of the child. The main interests of children and families as a whole are the acquisition of their own housing or direct improvement of living conditions. The purchase of non-residential properties, second housing, or an object inferior in terms of price to the existing property is not allowed.

The same goes for a car. A sample agreement for the purchase of a car using maternity capital is a legal fiction, which today can be regarded as fraud. If the contract involves a purchase and sale, then the object of the contract must necessarily be housing. No changes to the law are currently envisaged.

Maternity capital for the purchase of a car - terms of the agreement

The procedure for spending targeted funds completely excludes the purchase of a car. The fact is that no bank today provides such consumer products - this is prohibited by law.

If the agreement is concluded between private individuals, then after the sale and purchase the seller will not be able to cash the certificate. If the money is spent incorrectly, then such a transaction will automatically be considered void.

List of documents for using maternity capital to purchase a car

Today, citizens are invited to use the services to cash out targeted funds. But it is important to know that all this goes against the provisions of the law, which in turn does not allow such transactions.

In most cases, the family risks being left without government assistance and without an illegally purchased car. Documents to the pension fund for the use of maternity capital will not be initially accepted.

How to buy a car

If a family, after receiving local capital, decides to purchase a car, then the following steps are performed:

• select a car and a car dealership where the purchase will be made;
• the application and other documents are submitted to the social security worker;
• an inspection is carried out within a month;
• if the decision is positive, the money is transferred to the car dealership’s account;
• Parents, if necessary, add the required amount, after which they become the owners of the car.

If citizens sell their cars over the next three years, they will have to fully return the entire amount received from the regional budget.

What kind of car can you buy?

In many regions, it is allowed to purchase only a domestically produced car. Approximately 100 thousand rubles are provided for its purchase with the help of local maternity capital, so you have to invest your own funds. It is allowed to buy a car not only for cash, but also on credit.

When choosing a car and a car dealership, the following nuances are taken into account:

• only a new car is purchased, which is sold in car dealerships;
• a salon is selected whose management agrees to use the capital, since the money is transferred to the organization’s account within two months;
• Only domestically produced cars and mid-price cars are selected;
• If a car dealership sells used cars, then you can buy them, but their age should not exceed three years.

Reference! Not all car dealerships accept a certificate for regional capital, so only official dealers are selected who are willing to wait several months for the transfer of money from social security.

Preparation of documents

If a family that has received regional maternity capital decides to purchase a car, then the car itself and the car dealership are selected for this purpose. After this, a package of documents for social protection is prepared.

The following documentation is required:

• applicant's passport;
• certificate for regional maternity capital;
• an agreement drawn up with the selected car dealership, which specifies the technical characteristics of the car;
• driver's license;
• details of the car dealership to which money for the car will be transferred.

If a car is purchased with borrowed funds, then additional documents are prepared for the bank, and a copy of the loan agreement and payment schedule are sent to social security.

After transferring the papers, you need to wait approximately 30 days, during which a decision is made on the possibility of issuing money to purchase a car. If there are no errors in the documents and a suitable car is selected, then the money is transferred to the car dealership’s account.

It is also useful to read: How to pay off a military mortgage with maternity capital

Is it possible to buy a car with maternity capital in 2021?

It is theoretically possible to buy a car using maternal capital funds. However, the practical implementation of this opportunity often encounters bureaucratic and legislative obstacles.

Since maternity capital appeared, debates about options for its implementation have not subsided. Many people believe that a car in a family is not a luxury, but a significant improvement in the living conditions of children. Purchasing a car becomes especially important in rural areas or suburbs, where children have to get to school, clinics, and additional education institutions with great difficulty and risk.

In addition, a car is extremely necessary on a household if the family lives in a manor-type house. And it is absolutely necessary for those who are engaged in agriculture.

Maternity capital is given to improve the lives of children, first of all. If a family lives in a small apartment, then spending maternity capital money on a car is not rational. However, in the absence of housing problems, a car can be a good way to improve the living conditions of the whole family.

In which regions is it possible to buy a car?

Regional capital funds are issued in different cities of the country, but not all regions allow you to buy a car.

Important! You can obtain complete information about regional capital from your local administration.