Questions and answers

1. How can I apply for a car financing?
2. Do I need collateral?
3. What method is used to finance my car?
4. When do I have to pay my instalment?
5. What happens if I have difficulty in repaying my debts for a considerable time?
6. Is there a fee for early repayment ?
7. What is the total cost of the financing?
8. How is interest calculated?
9. What is the APR?

1. How can I apply for a car fianncing?

You can submit an application at car dealers or any of our branches if you are aged 18 to 65, are in work or have other sources of income.

2. Do I need collateral?

The collateral is the car itself. However, you may be asked to provide additional collateral such as personal guarantees or to block deposits.

 

3. What method is used to finance my car?

The hire purchase method. Once it is approved, the car is transferred into the name of the Bank of Cyprus and your name, we pay the seller and you take immediate possession of the car. After the repayment the car is transferred to your name, after you pay a small token amount to the Bank as the purchase fee.

 

4. When do I have to pay my instalment?

It’s a good idea not to delay repaying instalments beyond the date we have agreed from the outset, which is the date shown in your contract, so as to avoid having to pay additional costs. To make things easier for you, you can give the Bank written instructions for the instalment to be paid automatically from your current account.

 

5. What happens if I have difficulty in repaying my debts for a considerable time?

If you delay paying instalments, additional charges will be imposed in the form of a higher interest rate for the amount not paid. If your financial circumstances change and you can no longer keep up with your instalment repayments, contact your personal banker in good time to work out a new repayment schedule.

 

6. Is there a fee for early repayment?

No, there are no extra charges.

 

7. What is the total cost of the financing?

The total cost is made up of :

  •  interest
  •  the purchase fee specified in the contract
  •  government charges such as stamp duty and vehicle transfer charges.

 

8. How is interest calculated?

  •  Interest is always calculated on your daily balance. In this way, over time the interest reduces because the balance is also reducing.
  •  Interest is calculated by multiplying the daily interest rate by the daily balance.

 

9. What is the APR?

The APR is the total cost of borrowing for the consumer, expressed as an annual percentage on the financing offered. The APR includes all cost factors (including interest and all charges, which consumers have to pay).

The APR is the best tool available since it includes all costs and helps you have a better picture when comparing various products from the Bank or other banks.

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