Generally, car loans of banks are strictly in accordance with the central bank's interest rate, which will fluctuate with the adjustment of the central bank's interest rate. At present, the bank car loan interest rate on the market is around 6%, which is more cost-effective.

The interest rate of auto financing is generally set by auto companies themselves, and the interest rate is generally fixed, and the interest rate of most auto financing companies in the market is higher than that of banks 1%- 10%. If the loan period is longer, the auto financing company will need more funds than the bank.

2. Different reliability

Generally speaking, banks are highly reliable. For example, China Industrial and Commercial Bank, China Agricultural Bank, China Construction Bank and Bank of Communications. All are state-owned banks. They are trustworthy in scale and qualification, and they can feel more at ease when they cooperate with banks to handle business.

Auto finance companies are more difficult to say. There are all kinds of car brands in China. In addition to most enterprises with great brand influence, there are still many "mouse droppings" that are just a cover. If consumers have no discernment, they are easily deceived.

3. The application difficulty is different.

General banks have very strict auditing standards for loan users, such as the applicant's credit information, education, income, residence, assets and so on. The general review time is about one week, and consumers may be rejected as long as they do not meet the standards.

The audit of auto financing companies is much simpler. Consumers can basically apply for car loans as long as they have a fixed income and their credit information meets the standards, and the car loans are handled very quickly. You can usually apply in the morning and pick up the car in the afternoon.

4. Different loan methods.

Although banks will not restrict car models, general loans require a down payment of 30%, and the loan period is only 36 years (3 years), which puts consumers under greater economic pressure; Auto financing companies only need 20% down payment, and the number of loan periods can basically be divided into 60 periods (5 years).