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Auto financing companies have much higher car loans than banks.
Compared with the traditional bank loans, relevant people compared five auto financing companies, and found that buying a car through auto financing company loans does not need to go through the bank, and the threshold is the lowest, but it is accompanied by handling fees and higher interest. However, in order to seize market share, auto finance companies have introduced various flexible repayment schemes, which can reduce the cost of car purchase for consumers.

You can pick up the car at the lowest threshold on the day. Auto financing company loan refers to the loan business launched by auto manufacturers. Buying a car through auto financing company loan is the most mainstream way of auto loan in developed countries in Europe and America. At present, the domestic automobile brands that started this business earlier mainly include BMW, Peugeot Citroen, Toyota, General Motors, Mercedes-Benz, Ford, Nissan and other mainstream manufacturers. The most obvious advantage of auto financing companies is that they can apply directly in 4S stores, and there are not many requirements for hukou and real estate. Under normal circumstances, whether it is a credit card installment or a bank loan, you need a local account and a real estate license, otherwise it will be difficult to pass the examination. Using an auto financing company to borrow money does not require household registration, and the loan period can be as long as five years. In contrast, the longest period of credit card car purchase is only three years, and only some banks can reach the five-year period of bank car loan. Like bank loans, consumers need to provide proof of identity, driver's license, residence certificate (foreign account), income certificate and other documents to the lending institution (bank or finance company) when applying for loans. Since auto financing companies only provide loan services for self-owned brands, the approval process of auto financing companies is simpler than bank loans, so they can pick up cars as soon as possible.

The personal credit, education, income, work and other factors of ordinary car buyers are the reference standards of auto financing companies. Car buyers do not need to provide pledges other than vehicles like bank loans, nor do they need guarantees. However, in order to control the loan risk, auto financing companies have the requirement of "home visit", that is, to investigate the situation at the buyer's home and workplace.

Although the loan threshold through auto financing companies is the lowest, if there is no discount activity, the loan interest rate is much higher than that of bank loans. Take a three-year loan as an example. Under the standard loan conditions (that is, manufacturers don't discount interest or engage in activities), the interest rates of the five auto financing companies surveyed are generally above 10%, while the auto loan interest rate of Guangzhou Market Bank previously investigated by relevant persons generally rises 10%-50%, that is, between 7.04% and 9.6%.