1. Loan down payment ratio Most banks’ car loans stipulate that the down payment is 30% of the car price. The loan term is generally 3 years. A deposit of about 10% of the car price and related handling fees are required. In comparison, auto finance companies have low down payment ratios and long loan periods. Generally, auto finance companies require a minimum down payment of 20% of the car price, and a maximum loan term of 5 years. There is no mortgage fee, as long as the consumer is at the manufacturer. Authorized sales stores can handle all "one-stop" car purchase, loan, insurance and other services.
2. The expected annualized interest rate of the loan. The expected annualized interest rate of the bank's car loan is determined based on the bank's expected annualized interest rate, and the expected annualized interest rate of the auto finance company is usually higher than the bank's current expected annualized interest rate. Of course, some financial companies will also adopt interest-free loan business in order to increase the sales of some non-best-selling models.
3. Comparison of advantages and disadvantages 1. Advantages and disadvantages of bank car loans: The expected annual interest rate is relatively low. Based on the customer's integrity and qualifications, the down payment ratio can be reduced, the loan term can be lengthened, and the expected annual interest rate of the loan can be reduced. Interest rates will be discounted. However, the application procedures are complicated and require the car buyer to provide a series of supporting documents as well as valid rights pledges or mortgages that can be recognized by the bank or a third-party guarantee with the ability to compensate. If you do not have a local household registration, you still need a guarantor. The procedure is quite cumbersome and the loan approval rate is not high. 2. Advantages and disadvantages of auto finance loans: Auto finance companies are more professional and user-friendly, with a minimum down payment of RMB 20, and the application threshold is low. The procedures are more convenient, and you can pick up the car on the same day as soon as possible. However, the disadvantage of car loans from auto finance companies is that the expected annualized interest rate of the loan is relatively high, and the expected annualized interest rate for a 5-year term is sometimes close to 8.
Summary: Bank car loans have low expected annual interest rates and complicated procedures. Auto finance loans have high expected annualized interest rates and simple procedures. The two are also different in the choice of car models. If you choose a bank For direct car loans, you can choose any car model, while car finance loans generally refer to car models owned by automobile companies, and there will be certain restrictions on the amount of car models you can choose. Whether you choose a bank car loan or a car finance loan, you need to consider the above contents comprehensively, including loan procedures, down payment ratio and expected annual interest rate of the loan. Compare the advantages and disadvantages of the two, and then choose the right one based on your actual economic situation. car loan options.