Automobile finance in a broad sense
Broadly speaking, auto finance is basically equivalent to all auto-related financial businesses, including fund raising, credit, mortgage, leasing and other activities required in the process of auto production. These activities can be regarded as auto finance business. Since the rapid development of China automobile industry, the automobile finance business has also developed rapidly. However, due to the immature domestic credit model and different consumption patterns in other countries, the development of auto finance business is not particularly good. In recent years, more and more people choose loans to buy cars in China, and the auto finance business is also promising.
Automobile finance business in a narrow sense
In a narrow sense, auto finance refers to a series of financial operations in the process of auto sales, most of which are loans to buy cars. Commerce is generally subdivided into three types, one is banks. Just like buying a house, customers provide certain materials to the bank, pass the examination and approval according to the loan process, get the loan they need, and pay a certain down payment to get the vehicle. There is also a financial institution, which does not need to provide complicated procedures like banks, but only needs work certificates to prove that it has a stable income and can complete loans. The down payment is also a little less than that of the bank. Of course, there are also shortcomings, that is, the loan interest of financial institutions is much higher than that of banks. There is also the need to mortgage cash with a car. This kind of interest is more than the bank's interest, but the interest after mortgage is lower than that without mortgage, which is a compromise choice. Is the loan not bad? Nowadays, if someone needs to buy a car. Many people will choose auto finance services, and they only need to pay a certain down payment to get their favorite vehicles.
Problems needing attention in automobile financing loan
The first thing to note is that car loans also depend on personal credit. If the credit does not meet the requirements, it is impossible to get a loan from the bank. General lending institutions have three choices: banks, enterprises and private lending institutions. The bank is the car loan business of the bank. The loan period is shorter, the interest rate is lower, and it is formal. Enterprise organization is a loan institution under the automobile enterprise, which specializes in providing loans to customers. It can be understood that as long as customers want to buy, sales will solve all the problems for customers before buying. The third category of private lending institutions is not recommended. These institutions are informal, and there are problems with interest calculation. It is not recommended that car buyers go to small institutions, and it is more secure to take loans from banks and car companies.