Is car mortgage loan dangerous?

In terms of value evaluation, the depreciation rate will be much higher than that of house mortgage loan, and the car price is already much lower than the house price. The second is the loan period. Long-term loans are not allowed for car mortgage loans.

Since the value of a car is not as fixed as that of a real estate, usually the term of a car mortgage loan will not exceed one year, and it is a short-term loan. Finally, in the process of applying for a car mortgage loan, certain fees will be incurred, such as evaluation fees, GPS installation fees (if the certificate is not pledged), etc. All fees are calculated comprehensively. In fact, the cost of a car mortgage loan Not low.

Note:

Car quality risk. Because dealers do not purchase cars through proper channels and sell vehicles with quality problems to borrowers, the quality affects the recovery of loans. The second is the risk of determining the maximum loan guarantee limit. At present, most of the auto mortgage loans issued by rural credit cooperatives are guaranteed by dealers. Since the maximum loan guarantee limit is too large, it exceeds the guarantee capacity of dealers, causing hidden risks to credit funds.

What are the risks of car mortgage loans?

There are three main risks of car mortgage loans:

1. Credit risk: mainly including borrowers, car dealers and Credit risk of long credit;

2. Market risk: mainly includes six major market risks: multiple loans for one car, fake car price, total cost, loan A and loan B, imposter, fake car shop;

3. Operational risk: During the loan review process, blindly cooperated with dealers, pre-loan investigation was not in place, accurate customer information could not be obtained, and post-loan follow-up inspections were not implemented.

A car loan refers to a loan issued by a lender to a borrower who applies to buy a car. The actual interest rate of a car loan is determined by the handling bank based on the actual situation of the customer and with reference to the loan benchmark interest rate stipulated by the central bank. There are three types of auto loans: direct customer loans, customer-to-customer loans, and credit truck loans. Car loan terms are generally 1-3 years, with a maximum of 5 years.

The borrower must be a permanent resident of the lender’s location and have full civil capacity. The actual interest rate of a car loan is determined by the handling bank based on the actual situation of the customer and with reference to the loan benchmark interest rate stipulated by the central bank. Customers with excellent general conditions can enjoy the base interest rate or an increase of about 10%, while ordinary customers need an increase of about 10% from the base interest rate. Personal loan car purchase business is divided into direct customer, inter-customer and credit truck loans. The direct customer type is generally the car loan from the bank where the customer directly meets for the loan, and the intermediate customer type is generally the car loan from the auto finance company to which the auto finance company transfers the customer.

For direct customer bank car loans, the fees charged include deposit, principal and interest, 3 guarantee fees, etc. The bank's premium customer fees will be preferential, but the preferential policies of each bank are different. In addition to paying the above fees, inter-customer auto finance companies also need to bear regulatory fees, fleet management fees and warranty renewal deposits. There is also a credit truck loan. Credit card installment car loans only provide installment payments to bank credit card users without providing any conditions. There is also a review process, which is difficult for credit card users with poor credit records.

What are the risks of not pledging the car for a car mortgage loan? How to avoid it?

We all know that car mortgage loans are divided into two types: car mortgage loans and non-car mortgage loans. No matter which method, there will be certain risks. So, what are the risks of car mortgage loans without car mortgage loans? How to avoid it?

What are the risks of car mortgage loans?

First of all, in terms of value evaluation, the depreciation rate will be much higher than that of a house mortgage loan, and the car price is already much lower than the house price.

The second is the loan period. Long-term loans are not allowed for car mortgage loans. Since the value of a car is not as fixed as that of a real estate, usually the term of a car mortgage loan will not exceed one year, and it is a short-term loan.

Finally, in the process of applying for a car mortgage loan, certain fees will be incurred, such as appraisal fees and other fees. Calculating various fees comprehensively, in fact, the cost of a car mortgage loan is not low.

Car mortgage loan risk avoidance measures:

1. Borrower aspect. One is credit risk. The car buying community is mixed, and some people with moral hazard may be mixed in. Due to the subjective default mentality or when the price of the car falls below the loan amount that the car buyer needs to repay, the car buyer may make a rational breach of contract, which may put the loan at risk. . The second is the risk of payment ability. Self-use vehicle borrowers are unable to repay on time due to reduced family income; commercial vehicle borrowers are subject to risks from the entire transportation market and industry policies, and their expected income is reduced or even completely lost; or borrowers are not able to pay on time due to poor management and the other party's freight settlement is not timely. Repayment.

2. Dealers. One is the risk of automobile quality. Because dealers do not purchase cars through proper channels and sell vehicles with quality problems to borrowers, the quality affects the recovery of loans. The second is the risk of determining the maximum loan guarantee limit. Most of the auto mortgage loans issued by rural credit cooperatives are guaranteed by dealers. Since the maximum loan guarantee limit is too large, it exceeds the guarantee capacity of dealers, causing hidden risks to credit funds.

3. Insurance companies. First, insurance companies take advantage of borrowers' vague understanding of insurance terms and omissions in credit union loan operations to seek opportunities to waive insurance liability or reduce liability when insurance liabilities occur; second, some marketing personnel of insurance companies adopt unfair competition methods , violates the insurance terms and shortens the insurance period privately, causing the insurance to become invalid and the liability exempted.

4. Operations of lending institutions. First, the pre-loan investigation was untrue. Due to insufficient credit personnel, the pre-loan investigation was a mere formality. The income certificate and asset certificate provided by the borrower were seriously distorted, which laid the foundation for hidden risks. Second, post-loan management is not in place, or there is no post-loan management at all. After the loan is issued, whether the borrower actually uses it for purchase, and the engine number, frame number and other information of the purchased vehicle are not confirmed in a timely manner.

What are the disadvantages of car mortgage loans? Not to mention that most people don’t know it at all

More and more people own cars nowadays. In addition to transportation, car owners are gradually realizing other uses of their vehicles. Especially in times of shortage, car owners can use their cars for car mortgage loans. Many car owners have asked, what are the disadvantages of car mortgage loans? Not to mention that most people don’t even know!

What are the disadvantages of car mortgage loans?

1. The interest rate is too high

Although mortgage loans have lower loan interest rates than credit loans, car mortgage loans may be an exception because the car will depreciate in value. The risk is higher for institutions, and most banks do not support borrowers using their cars as collateral for loans.

Many borrowers can only apply for car mortgage loans through some small loan platforms on the market. The loan interest rates of such loan platforms are higher than bank loan interest rates.

2. The cost is too high

If a borrower uses a car as collateral to apply for a loan, the lending institution needs to evaluate the value of the car and determine the loan amount that the borrower can apply for based on the evaluation results. , and this assessment fee is borne by the borrower. In addition, in order to control risks, the lending institution will also install GPS positioning on the vehicle used by the owner for mortgage, and it involves guarantee issues. These GPS installation fees and guarantee fees are all required borne by the borrower.

3. Low loan amount

Cars will depreciate as their service life increases, so when applying for a car mortgage loan, the depreciation value of the car is very low, and car owners can apply for it. The loan amount is even lower, and in order to control risks, lending institutions usually only support car mortgage loan services within 6 months, so car mortgage loans may not meet the borrower's loan amount and term needs.

The above is the sharing of relevant content about "What are the disadvantages of car mortgage loans", I hope it can help everyone!