High interest rate of financial loans

Bank car loans are strictly implemented according to the central bank's interest rate, which is basically around 6% and fluctuates with the adjustment of the central bank's interest rate. The loan interest rate of auto financing companies is obviously higher. For example, the car loan interest rate of Volkswagen Finance Company with a down payment of 35% is about 3 percentage points higher than that of banks. The car loan interest rate of Shanghai General Motors Finance Company is 7.94%, which is about 1.9 1% higher than the bank interest rate. If the interest rate is higher, it will reach 10%- 12%, which is generally a fixed interest rate.

Although many brands have also introduced interest-free concessions, they are all based on the fact that the car price cannot be negotiated. So consumers don't get much discount. Taking the loan of 6,543,800 yuan as an example, the total interest expenditure of auto financing companies is generally 20,000-30,000 yuan. Of course, some financial companies will also take interest-free loans to increase the sales of some unsalable models, such as the interest-free loans of Ford Financial Company.

The threshold for bank loan application is high.

Auto financing companies have looser loan standards and simpler loan procedures. Under normal circumstances, the whole process only takes two or three days, and customers can get the car without paying fees such as handling fees and mortgage fees, which is convenient and fast. In the whole process of applying for loans, consumers' personal credit is an important factor to determine whether they can successfully apply for loans. The applicant's education, income, work, residence and even whether he has a driver's license affect his credibility. The higher the credibility, the smoother the loan.

The examination and approval procedures for bank car loans are complicated, which generally takes five working days or a week, and the requirements for the lender's occupation, income and credit are relatively high.

When a car buyer applies for a car loan from a bank, the information to be submitted and the bank's audit process are very strict. However, the strict examination of customers by banks does not mean that customers cannot apply for loans at banks. Generally speaking, professional groups with stable incomes such as civil servants, teachers and employees of well-known enterprises are more likely to be recognized.