State program “Family car 2020”: conditions and nuances

For many people, buying their first vehicle is a daunting task. It happens that there is not enough money for the down payment or a person is refused due to age. Sometimes banks are ready to issue money at high interest rates for a short period, without the possibility of using discounts. It is because of all this that people often put off buying their first car indefinitely.

In order to avoid such situations, an initiative has been developed that allows you to easily purchase your first car at a discount and at a reduced rate. Back in the summer of 2021, the first car program began operating in the Russian Federation. With its help, the state decided to support the domestic auto industry and motivate citizens to buy new cars. As part of the program, it was planned to sell more than 50,000 cars. Society responded positively to this initiative, so long before the end of 2017, all the cars were sold out. Having seen the positive dynamics and interest of people, the authorities decided to extend the state program for 2021, but with some changes.

How does the program work and who benefits from it?

There are different programs for car enthusiasts in Russia, including trade-in and a recycling program. However, if at the very beginning they were extremely popular, by 2021 the demand for them has dropped significantly. This is due to the fact that most car owners have already taken advantage of the offer, and the program has simply exhausted itself. In this regard, it became necessary to look for new solutions to increase the demand for domestically produced machines. So, in 2021, a completely unique idea emerged that could solve many economic problems.

Under the terms of the program, every citizen of the Russian Federation has the opportunity to buy a car on credit at a discount. For these purposes, more than 7 billion rubles were allocated from the budget.

This initiative is beneficial to motorists, banks, automakers and the state. Let's look at the main advantages of buying your first car on preferential terms.

For the state:

• Stimulating the country's economy;
• Renewal of citizens' vehicle fleet;
• Development of car services servicing domestic cars;
• Support for the banking sector.

For banks:

• Increase in loan portfolio;
• Possibility of implementing additional services.

For automakers:

• Increasing the pace of car production;
• Increased sales.

Since buying a car is a very expensive undertaking, especially if it is your first car, the benefit for car enthusiasts is obvious - for the second year in a row, young people have been getting a unique opportunity to purchase a car on credit, and at an impressive discount.

Car loan with state participation: review of 2019 results and prospects for 2021

The state program to support demand for cars has been implemented with the support of the Government in the Russian Federation for eight years, from 2009 to the present, and is quite successful: a significant number of people were able to take out a car loan, part of which will be paid by the state, and acquire not luxury, but a means of transportation .

Additional funds for the purchase of a car are allocated from the budget and, in accordance with the Law, in 2021 were allocated to the implementation of the “Own Business” (commercial transport), “Russian Tractor” (trucks), and “Russian Farmer” (rural vehicles) programs intended for small businesses, but the most popular turned out to be the state program for the first car and the state program for the family car, intended for the everyday life of ordinary people.

Conditions for participation in the program for borrowers

To participate in the program, you must meet certain requirements. At first it was planned that one of the main conditions for participation would be age. According to the developers, the program is aimed at young people under the age of 30. But later this decision was revised, and the conditions for participation were softened.

Selection criteria for candidates for the first car program:

• The vehicle to be registered must be the first. If at one time the borrower already owned a car, then he cannot qualify for participation in the program, even if at the moment there is no car registered to the borrower;
• The borrower must have a valid driver's license category "B";
• The program is valid only for Russian citizens;
• The borrower must be employed and must prove his income.

The accuracy of the information provided is checked by the credit institution issuing funds for the purchase of a car and the traffic police. The bank’s security service will also check the borrower’s credit history through the BKI.

If, in all respects, a person is suitable for participation in the state program, then it should be taken into account that during the execution of the transaction, in addition to the obvious financial obligations, he will have to sign an agreement that in 2021 he will no longer purchase any vehicles on credit. The same condition was mandatory in 2021.

You can only take part in the first car promotion in 2021 once.

Who can take advantage of the “First Car” state program in 2018 and under what conditions

In order to become a participant in this state program in 2018, a Russian citizen must meet only two conditions:

• have a driving license category “B”,
• never owning your own car before.

By meeting these conditions, a person can buy a passenger car on preferential terms that meets the following list of requirements:

• made in Russia,
• produced within the last two years,
• cost - up to 1.45 million rubles.

A lot of cars that meet these requirements are produced in the country, reports the website Therussiantimes.com. In addition to the entire AvtoVAZ product line, these also include many models from the brands Hyundai, Kia, Renault, Skoda, and UAZ, as well as Nissan X-Trail, Mazda CX-5, Volkswagen Tiguan and Ford Kuga cars in a minimum configuration.

Terms of action

If you meet all the criteria, then you may well qualify for participation in the promotion, but first you should find out about all the additional conditions of the state program and the nuances of applying for a loan.

The first car promotion includes the following:

• You can become a participant in the program only when purchasing a car on credit;
• The bank issues a loan for a period of no more than 3 years;
• All cars purchased on credit under the state program are given a 10% discount;
• If, when drawing up a loan agreement, the borrower is not ready to make a down payment, then he is not given a 10% discount, but the reduced rate remains in any case;
• To receive a guaranteed discount, the initial minimum payment must be 10% of the total cost of the purchased vehicle;
• The maximum price of a purchased car in 2021 cannot exceed 1.5 million rubles, but in 2021 this amount was less;
• The loan rate for participants in the state program cannot exceed 11.3% per annum. But, at the discretion of the bank, it may well be reduced;
• The loan amount under the terms of the agreement may include not only the cost of the car, but also additional services, such as insurance. The main thing is that in the end the loan does not exceed the program limit established by the state.

Conditions of the state program the first car in 2021

Although the essence of the program is clear and understandable, there are still established conditions and a lot of pitfalls and nuances must be taken into account:

• The program is not eternal and there are time limits; the program is valid throughout 2020, but most likely it will not last until the summer;
• Not everyone can participate; there are restrictions on age, citizenship, and banking restrictions;
• There are a number of additional conditions, the main one being that you have never owned a car before participating in the program;
• There are pitfalls of the program itself, they are mainly associated with banks, insurers and salons.

In general, it is better, of course, to weigh the pros and cons before deciding to participate in the state program. Otherwise, the purchase may cost you too much.

Conditions for the vehicle

Not all cars qualify for the first car program, but the list is quite wide. It includes almost all the most popular brands, but many are sold in a minimal configuration, since when purchasing cars with a full configuration, the loan amount may exceed the established limits, which is contrary to the conditions of the state program.

The list of cars offered includes:

• Cars of the Lada brand. The range of vehicles offered under the program is limited. For purchase you can consider Vesta, Granta, Kalina, Priora, Largus, Samara;
• UAZ and ZAZ cars of all models and configurations.

Since the program is aimed more at young people, and they mostly choose foreign cars, foreign cars were also included in the list. The main condition is that the assembly of foreign-made vehicles be carried out on the territory of the Russian Federation. The following conditions fell under this condition:

• Chevrolet cars. Niva, Cobalt, Aveo models are offered in all trim levels. The Cruze is available in select trim levels only.
• Citroen cars. The C-Elysee model is available in any configuration, the C4 is only available in certain trim levels.
• KIA Rio cars can be obtained on credit in any available configuration, the Ceed model - in some versions.
• The design of Dewoo Matiz and Nexia cars is available in any configuration.
• The Ford Focus model is a participant in the program, but in limited variations.
• Skoda cars of the Fabia model are also offered in any configuration and Octavia – in a limited version.
• Hyundai Solaris can be purchased in any configuration.
• Nissan Almera and Note can be equipped with any selected configuration, but Tiida can be equipped only with some.
• The Peugeot 301 is also included in the program in any configuration, and the 408 model is only available in some of them.
• Renault Logan and Sandero were available in any configuration, and Duster – in a limited configuration.
• The list includes Mitsubishi Lancer, Toyota Corolla, Opel Astra and Mazda 3, but due to the high cost of these cars, only limited equipment is allowed.

As you can see, at the moment the program registry includes a wide range of different car brands. But if during 2021 there is a significant reduction in vehicle prices, then we can assume that the first car program in 2021 will significantly expand the proposed list.

Prospects for the development of state programs for the purchase of a car in 2020

The first person of the Ministry of Industry and Trade, Denis Manturov, confirmed that this state program will continue to operate in 2019, and the possibility of allocating more funds for the implementation of these goals is being discussed. Therefore, citizens planning to spend money on buying a car in the near future are advised to familiarize themselves with the conditions that were in effect during the current year, 2021.

It is possible to conclude that there is much in common between these support measures: both the state program for the first car and the state program for a family car limit the amount that can be spent on buying a car, 1,450 thousand rubles, the car must be new (not older than a year) and assembled in Russia, it is possible to purchase it with a 10% discount, without a down payment, a car loan is given for a maximum of three years and at no more than 11.3% per year it is possible to use this benefit only once.

Banks working under the program

Not all Russian banks operate under the new program, but those that have posted participation information on their official websites offer the following conditions:

• The minimum rate, from VTB 24, is 5.5%, while the down payment on the first car can be 0 rubles;
• VOLKSWAGEN BANK RUS issues money at 6.5% and the borrower will have to make a first payment equal to 25% of the total cost of the car;
• Car loans in Uralsib are available at a rate of 8%, but their conditions do not provide for the first payment;
• RNKB issues loans at 8.3% without a down payment;
• Rusfinance Bank offers a rate of 6.7% and no down payment;
• Unicredit is ready to sign a loan agreement at a rate of 6.5%, but with a down payment of 10%.

In addition to these banks, Rosbank, Bank of Moscow and Sberbank are participants in the program, but there is no information on the conditions of the loan program on their official websites.

The exact rate, term and loan amount under the program depend on various factors:

• Bank policies;
• The presence or absence of a down payment;
• Borrower's credit history;
• Package of provided documents.

Registration algorithm and package of necessary documents

If you are interested in the first car program and you plan to make a purchase within a year, then you must:

• Select your first vehicle from the showroom;
• Decide on a credit institution;
• Provide the credit institution with the required package of documents;
• Wait for the official result (approval or refusal);
• If the decision is positive, go to the bank to sign the loan agreement.

You can apply for participation not only at a bank branch, but also on the institution’s website or at a car dealership.

Let us dwell in more detail on the provision of a package of documents. Banks change this list every year at their discretion, adding or removing any documents from it. Here is a list of the main documents that must be provided:

• A completed application form according to the bank;
• Passport;
• Driver's license;
• TIN;
• Certificate from the traffic police confirming the absence of ownership of the vehicle;
• Confirmation of solvency (certificate of income);
• Signed agreement with the car dealership.

When drawing up a loan agreement, there are some aspects to consider:

• During the term of the loan agreement, the vehicle will be pledged to the bank, which means it cannot be sold without the consent of the lender;
• The credit institution issues a loan at their current interest rate, but 6.7% of them are repaid under the program from the budget allocated by the state;
• The validity period of the loan agreement cannot exceed 3 years, and at the request of the borrower it can be reduced;
• If the limit allows, then additional insurance services may be included in the loan agreement;
• The borrower can count on a 10% discount only if he makes the minimum down payment required by the bank;
• The borrower receives a significant benefit from purchasing the first vehicle under the state program not only because of the 10% discount, but also because of the reduced rate.

State program first car 2021

The state program for the first car is an excellent choice for those who have not previously owned a vehicle and have not taken out a car loan. It is noteworthy that age in this case is absolutely unimportant, and a person of any age can apply for the purchase of a car - if only they had a driver’s license, although previously there was talk of a possible age limit of 30 years, which, fortunately, was not confirmed. To summarize, we can say the following: the first car state program is designed for citizens of the Russian Federation who have a driver’s license and have never owned a car before. The information provided will be verified by interacting with the traffic police and studying your credit history.

conclusions

The government's first car program was launched last year, but due to its high popularity, it was extended to 2021. Its main goal is to help citizens purchase their first car and stimulate the country’s economy. Here are the main points of the First Car program:

• Every citizen can purchase a car at a discount and at a reduced rate, subject to the requirements of the program;
• The term of the loan agreement can be reduced, but it is not possible to take out a loan for more than 3 years;
• The year of birth of the borrower does not matter, the main thing is that it is the first vehicle registered as a property in its entire life;
• If, after a year, the first car program remains as popular, then we can hope for continued government support.

Leading credit institutions participate in the state program, the list of which is updated from year to year. Typically, their websites contain detailed information about the conditions for participating in the first car promotion. If information about the program is not available on the website, then you can get full advice on loan terms at the branches of banks participating in the program.

State program family car 2021

The state family car program, as its name implies, is intended for those who have children. In this case, parents of two or more minor children can apply for the purchase of a car on preferential terms. The state family car program is aimed at a citizen who has a driver’s license and is the mother or father of at least two children, to confirm which it is necessary to submit either the children’s birth certificates or a passport where they will be entered to the bank.

The authorities’ new state program to support the domestic automobile industry, introduced to replace recycling, was designed for the second half of 2021, but the population liked it and ended ahead of schedule, in mid-October. It’s safe to say that the campaign turned out to be mutually beneficial: thanks to it, at least fifty thousand of our compatriots began to look at the world from the window of their own car, and there was a trend toward increased sales on the market, which has a positive effect on the economy.

The next wave of subsidized loans is planned for early 2021, so now is the time to prepare for this event and get ready to buy a car.