If the car loan is interest-free and there is no penalty interest for early repayment, then even if it is repaid in advance, the interest will not be reduced, because there is no interest in itself. You need to pay interest on the car loan. If you pay it back in advance, you will definitely receive less interest.

However, if the loan contract stipulates that liquidated damages need to be paid, the user also needs to take this cost into account. When the interest saved is greater than the liquidated damages, it is cost-effective to repay in advance. Not all prepayment is cost-effective. Users with prepayment plans can calculate it first.

First, the way of car loans

1. Credit card installment loan. This kind of loan process is the simplest, and the lender can only lend with good qualifications, but the longest loan period is only 3 years.

2. Bank loans, which have strict approval and high interest rates.

3. Automobile consumption loan, which lasts for five years at the longest, but the approval is not very strict.

Second, the conditions needed for car loans

1. Car loan applicant 18 years old or above, with full capacity for civil conduct.

2 has signed a car purchase contract and is able to pay the down payment for car purchase.

3. The car loan applicant has no bad credit information and a stable source of income.

4. Provide banks with bank-approved guarantees.

5. Comply with other provisions of local policies.

Third, the car loan steps

1. Submit the application form and the materials required for the review.

2. After the bank or car loan financial institution has passed the examination, it will sign a loan contract.

3. Lend money after the bank or car loan financial institution confirms it is correct.

4. The lender shall repay the loan every month as agreed.

5. After the car loan is settled within the specified time, bring valid documents, get back the settlement certificate and mortgage certificate, and settle it at the vehicle management office.

Fourth, the precautions for buying a car by stages

If you choose auto financing company loans, you should choose those formal institutions with financial licenses. If you go to some unknown companies, it is easy to meet swindlers or loan sharks. Some 4S shops use the slogan of zero-interest car purchase, but it needs to be verified before handling, whether it is really interest-free, and whether various handling fees and service fees will be charged later. In the case of buying a car by stages, some 4S stores will ask to go to the corresponding insurance company to buy auto insurance. At this time, it is necessary to find out whether the insurance company is reliable.

Five, the benefits of buying a car by stages

Buy a car by stages to reduce the pressure of buying a car. You only need to pay the down payment to buy a car by installment, and the rest can be paid by installment. Although installment payment will generate certain interest, it will greatly reduce the pressure on consumers to buy cars. Avoid the embarrassment of not getting big money at one time. In addition, this way of buying a car is consumers' favorite way. Buying a car by stages can reasonably plan funds. Buying a car by stages For consumers, they can get a car by paying a part of the money. If a car with a total payment of 300,000 yuan only needs a down payment of 90,000 yuan, then 2 1 10,000 idle funds can be used for investment to make money, and perhaps 2 1 can earn more income. Avoid the risk of "eggs in one basket".

Is it worth paying back the car loan in advance?

You can repay the loan in advance, and how to choose depends on your own situation:

1. It is recommended to choose prepayment.

If your loan interest rate rises on the basis of the benchmark interest rate and is in the early stage of repayment, it will be relatively cost-effective if you have the ability to pay off the loan in one lump sum or in part.

Therefore, it is suggested that the prerequisite for early repayment can be summarized as follows: the loan interest rate rises on the basis of the benchmark and is in the early stage of repayment.

2. Early repayment is not recommended.

If the loan interest rate you get is 8.5% or even 30% of the benchmark interest rate, then you don't have to rush to repay in advance. Choosing to buy some low-risk financial products can help you get more benefits.

If the borrower wants to repay the loan in advance, he must repay it for more than half a year, or even more than one year for individual banks. Banks generally require borrowers to submit written or telephone applications about 15 working days in advance. After the bank receives the borrower's application for early repayment, it needs to be examined and approved, so it usually takes about one month.

In addition, banks have different requirements for repaying loans in advance. For example, some banks stipulate that early repayment of loans is an integer multiple of 654.38 million yuan, and some banks need to charge a certain penalty.

If the borrower needs to repay the loan in advance, he should generally bring his ID card and loan contract to the bank for approval after applying by phone or in writing. If the borrower has settled all the balance, the bank will deposit enough money to repay the loan in advance after calculating the remaining loan amount.

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Is it cost-effective to repay the car loan in advance?

A year ago, Ms. Zeng applied for a car loan. A year later, Ms. Zeng not only repaid the loan on time, but also saved some money. Now, Ms. Zeng wants to pay off the car loan in one lump sum. But I don't know if it's cost-effective to repay in advance. So, is it cost-effective to repay the car loan in advance? According to Bian Xiao, whether it is cost-effective to repay personal car loans in advance depends on the repayment method and repayment period of personal car loans. Generally speaking, the repayment method of personal car loan is equal principal and interest repayment, and the repayment is within 50% of the total loan, so it is more cost-effective to repay in advance. If it is already 50%, there is no need to prepay. If the repayment method of personal car loan is average capital, because the average capital has to repay the same principal every month, but the interest amount to be repaid every month in the early stage is relatively large, so if the car loan has been repaid by one third, it is not suitable for early repayment. At the same time, we should also pay attention to the fact that the general car loan repayment is less than one year, and there will be a certain penalty for early repayment. Therefore, whether it is suitable to repay the car loan in advance depends on the current repayment situation of the individual.

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