1, different definitions
(1) Loan to buy a car: The loan granted by a lender to a borrower who applies for buying a car is actually a loan from a financial institution to buy a car. However, financial institutions require car buyers to pay a certain down payment and provide proof of repayment ability. No bad credit record, you can apply for a loan to buy a car as long as you meet the requirements of financial institutions.
(2) Installment payment: it is mostly used for product transactions with long production cycle and high cost. It is more economical to choose credit card installment payment than bank car loan and auto financing company. Usually, credit card installment payment is free of guarantee and interest, and only charges a handling fee. At the same time, when buying a car by installment with a credit card, there is no mandatory requirement for insurance and renewal when buying a new car. Generally speaking, you only need to buy major insurance and theft.
2. Different application conditions
(1) Loan to buy a car: To apply for a car consumption loan, you must buy a limited range of cars from a special dealer recognized by the bank. Car buyers must have a relatively stable job, a relatively stable economic income or assets that are easy to realize in order to repay the loan principal and interest on time.
During the period of applying for a loan, the car buyer will deposit the down payment for car purchase lower than that stipulated by the bank into the savings counter account of the handling bank, and provide the bank with a guarantee recognized by the bank. If the personal account of the car buyer is not local, it should also provide joint liability guarantee, and the bank will not accept the mortgage set by the car buyer for the car purchased by the loan.
(2) Installment payment: In the method of credit card installment payment, banks will have higher requirements for applicants, generally requiring local accounts, stable income, no bad credit history, and real estate and quality bank customers are preferred. It's easier to apply for installment payment. As long as the bank launches this service, car buyers can follow the rules of different banks.
Banks have different ways to pay by installment. In addition to the goods in the credit card installment catalogue, some banks have specific requirements on the place and amount of purchase.
3. Different interest rates
(1) Loan to buy a car: The interest rate of car consumption loan refers to the ratio between the loan amount and the principal paid by the bank to consumers, namely borrowers, for buying their own cars. The higher the interest rate, the greater the repayment amount of consumers. At present, the loan interest rate for automobile consumption is calculated according to the loan interest rate for the same period stipulated by the People's Bank of China.
Many auto financing companies have introduced interest-free auto loans, but there are different regulations on handling fees, some of which need to be charged and some do not.
(2) Installment payment: Although credit card installment payment is free of interest, the handling fee is inevitable. Because banks calculate fees in different ways, you should choose the most suitable card to trade after you know the fees of credit cards.