It is now popular to buy a car with a loan, but why is it not cost-effective to buy a car with a loan?

Nowadays, most people buy cars by installment payment, and few people buy cars in full. Installment payment not only relieves people's financial pressure, but also allows them to enjoy the convenience brought by cars in advance. Many people say that it is not cost-effective to take out a loan to buy a car. The interest paid is too much. However, there are still many people who are willing to buy cars in installments. There are so many payment methods for buying a car now, including zero down payment payment methods. There are payment methods for installment loans. Some people will say that buying a car in installments at a certain 4S store is much cheaper than buying the car in full. When you say this sentence, it can be judged that you are buying a car for the first time. There is no such thing as pie in the sky. Installment payments require interest. Buying a car outright does not require interest. How can installment payments be cheaper than buying a car outright?

There is no such thing as pie in the sky. You may be fooled if you are not careful. Buying a car in installments may involve a loan. Having a loan will inevitably involve various project expenses. Insurance delivery fees are also not included. When a 4S shop tells you that buying a car in installments is cheaper than buying the car in full. You can be sure that you have become their prey. There are really too many tricks here. All kinds of expenses are added up, and finally calculated as a whole, these additional expenses alone will cost tens of thousands more

Whether you are buying a new car or a used car. Many people like installment payment users, which can improve performance on the one hand. When a car is sold, one gets a commission on the profit, and sales are naturally happy to do so. As long as the car is sold, whether it is full payment or a loan, the merchant should make a lot of money. Therefore, the user's loan is from a bank or financial institution. The successful loan relationship will be transferred immediately. Users will no longer owe merchants money. Instead, you owe money to a bank or financial institution. Moreover, the interests of 4S stores and second-hand car dealers are tied together. The money sold through the loan also comes with loan rebates or two commissions. Sellers are naturally willing to let customers borrow money to buy cars. This is why when I go to buy a car now, people at 4S stores usually strongly recommend that you buy a car in installments, but do not recommend that you buy a car with a loan.

Pick up the car for the full price, which is basically the price of the car, plus purchase tax and compulsory insurance, and you can get the license. You choose how to buy commercial insurance based on your own needs, but buying a car with a loan is different. You don’t have the final say on what insurance to buy and how much insurance to buy, but the 4S store forces you to buy it. In the end, the car owners generally feel that they bought what they should buy and what they shouldn’t buy, and the merchant took your money on insurance. When buying a car, especially when you buy a good car, if you have a psychological Be prepared and take out a loan. After all, the down payment is indeed small and it will not take up a large amount of funds. However, if it is an ordinary family car, it is recommended to refinance the full amount. All kinds of non-plus fees will make you feel distressed. In the end, it cost tens of thousands, which was really not cost-effective.

Is it more cost-effective to buy a car with a loan or with full payment? Is installment necessary?

It is more cost-effective to buy a car in full, and there is no need to pay in installments.

Many friends say that it is better to buy a car in installments than to buy a car in full. If you buy a car in full, you will not have enough customer loyalty. Second, the profit margin of 4S stores for full-price car purchases is very low. Therefore, most 4S stores will recommend you to buy a car in installments. In fact, buying a car in installments is not just as simple as applying for a loan. Installment payment will pay a lot more fees than the full payment, including: loan interest, handling fees, GPS fees, etc.

For example, you must buy insurance at a 4S store, and it is fully insured! But if you buy a car with full payment, you can buy compulsory traffic insurance, car damage insurance, three-party insurance and no deductible, plus at most a theft insurance. In this way, you can save almost a thousand yuan.

The other fee is the handling fee. Friends who have bought a car with an installment loan will have more say. Sometimes the handling fee (called service fee in some places) is higher than the loan interest, usually 3,000- If you buy the car in full, you can save 6,000 yuan.

So my personal suggestion is that if you have enough money in your hand and choose to buy a car in installments and deposit the money in the bank, the interest you pay will be much higher than the bank's interest. It's a good deal, why not just buy it in full. If you don’t have enough money on hand and you just need it, you can only buy it in installments.

Never take out a loan to buy a car

Never take out a loan to buy a car

A car can cost as little as tens of thousands or hundreds of thousands, even expensive ones. Hundreds of thousands or even millions, many people cannot withdraw that much money at once, so they choose to take out a loan to buy a car. However, you should pay attention to the traps when buying a car with a loan, otherwise you will suffer additional costs or losses if you fall into the trap. Let’s take a look at the 13 major pitfalls when buying a car with a loan:

Trap 1: It’s hard to tell the truth from the fake

Many people don’t have a good understanding of vehicles, and even some consumers lack basic knowledge. Even if you have basic knowledge about cars and don’t have an effective understanding of the car models you want to buy, it is very easy for poor car dealers to make money by selling an entry-level car as a luxury class. Therefore, when buying a car, choose from a wide and reliable range. The trade market is very important.

Trap 2: Price increase

When the procedures have been completed and the car can be picked up, the car dealer requires that for various reasons, the consumer must pay a certain amount of credit on the original purchase price. You can get the car only if you pay the car credit.

Trap 3: Using contracts to deceive consumers

Contracts, if consumers do not check them carefully, may hide various traps, such as in the contract The book states that the loan repayment method is "equal principal and interest repayment," but the consumer's car loan list printed by the financial institution states that the method is "increase in cost and decrease in loan interest."

Trap 4: Buying a car with 0 annual interest rate

Various car dealers often attract the attention of car buyers by claiming "zero interest rate" loans to purchase cars. There is a new handling fee in the car loan payment, which is calculated as tens of percent of the car purchase price. Naturally, these expenses will not be written in the advertising promotion.

Trap 5: 1 yuan car insurance

1 yuan car insurance sounds very cost-effective, although it includes cost-effective content such as motor vehicle theft and third-party insurance, but in fact It is necessary to purchase other types of commercial insurance, plus other miscellaneous expenses, which will actually cost a lot of money.

Trap 6: Specials and sales cars

There is a high chance that these cars will be non-brand-new or in-stock cars. No one wants to find a lot of new cars when they get a new car. So be aware of these conditions.

Trap 7: Sign on a blank page agreement

Some car dealers will trick consumers into signing on a blank page agreement. When consumers go through the car purchase procedures with the dealer, the dealer The merchant first verbally promised the service, and then asked the consumer to sign a blank page agreement. However, after the consumer's loan procedures were completed, when the consumer saw the credit agreement, he discovered that the loan amount was different from the previously agreed price.

Trap 8: Car dealers have no credit qualifications

Some vehicle dealers do not have credit qualifications, but send consumers who buy cars through installment payment to dealers with credit qualifications Office, apply for car purchase installment repayment procedures.

Trap 9: Second Mortgage

Although this type of problem is rare, consumers should also be wary of their vehicles being second mortgaged by dealers, resulting in loans.

Trap 10: Don’t be deceived by daily and monthly payments

Sometimes, some credit companies do not specify bank loan interest rates when publicizing and plan, but only choose daily and monthly payments. How much is the loan amount is used to promote the plan, and cheap repayment will impress consumers. However, when the bank loan interest rate is actually calculated, the annual interest rate will be particularly high.

Trap 11: Overcharging and overpaying

When consumers apply for car loan procedures, the dealer intentionally deducts more money from the account and does not provide the consumer with a loan contract from the financial institution. , so that consumers cannot detect it.

Trap 12: Not applying for a loan according to the promised specifications

Some credit companies often make many promises to consumers when they apply, but they are actually unable to successfully apply. At this time, when the consumer demanded a refund of the handling fee and bear the loss of loan interest rate, the credit company refused to deal with it.

Trap 13: Contract breach costs

Dealers use the diversity of loan procedures and calculation methods to intentionally "shrink" the loan repayment period in the loan agreement, which causes consumers to "Breaking the contract" and then defrauding consumers of additional accounts.

Never modify the remote start system

At this stage, there is a saying among car owners that "Never modify the remote start system". The fundamental reason is that they are worried that the car will take too long to warm up. It is easy to cause damage to automobile components such as three-way catalytic converters. In fact, normal use of remote start to warm up the car has no harm to the car. This is not much different from one-button start, except that the distance between controls is different.

Although the remotely heated car will be in a waiting state, a small opening and closing of the cylinder can easily form carbon deposits, increase fuel consumption, and cause damage to the three-way catalytic converter. But after remote start, if the car warm-up time does not exceed 10 minutes, there is basically no harm, and you do not necessarily have to worry about the above problems.

On the other hand, the installation of remote start is also very popular. For the cold northern regions, remote start can warm up the car in advance and increase the temperature in the car, so that it will not be cold when you sit in the car. I had to tremble. In the south, if the car is parked outdoors, you can feel the air getting hot when you open the door. At this time, you can start the car early and turn on the air conditioner to cool down.

How much does it cost to install remote start?

According to the price on the market, the price of installing a remote start function is between 800-1,000 yuan, and a slightly more expensive one will cost around 2,000 yuan, but depending on the demand of the car and the local market There will be certain differences, and the actual conditions must be based on the car and market conditions.

It is important to note that when installing the remote start function, it is best to install it only when the car has an automatic transmission, so that you can know that the car is in the parking gear when it is running. In addition, installing remote start may change the original factory route, so you must find professional personnel to install it. Never take out a loan to buy a car. Never modify a remote start @2019

Should you take out a loan to buy a car? Understand your own situation first

It is really convenient to buy a car. You don’t have to wait for buses and taxis when you go out. You can drive comfortably by yourself. You can also go on a self-driving trip during the holidays. However, many people do not plan to buy a car in full, and there are some entanglements in buying a car with a loan. After all, buying a car with a loan is not suitable for everyone, so should you buy a car with a loan? I think we should first consider the following situations carefully and check ourselves out:

Calculate your own income

Before taking out a loan to buy a car, the borrower needs to carefully calculate his own income. At the same time, you should also think about your own car purchase budget. It is best if the monthly payment should not exceed 50% of the family's monthly income. If it exceeds this limit, it is best not to buy a car to avoid excessive repayment pressure that affects normal life.

Prepare the loan procedures

To successfully obtain a car loan, the borrower should prepare the required loan procedures in advance, such as identity certificate, residence certificate, marriage certificate, income certificate, etc. , to avoid being rejected by the lending institution due to incomplete procedures.

Whether it is possible to repay the loan in full and on time

Many people believe that if they buy a car with a loan, the car is their own, so they do not repay in accordance with the regulations after getting the loan.

You should know that your car is mortgaged with the bank, and the contract usually clearly stipulates that if you do not repay the loan on time within the specified period, the bank will take back the car and auction it, and the proceeds will be used first to repay the principal and interest of the bank loan.

Remember to go through the mortgage release procedures after the loan is settled

When the borrower settles the car loan, he must remember to go through the mortgage release procedures. If he does not go through the procedures, the ownership of the car will be lost. It's always in the bank, not yours.

Finally, I would like to remind everyone: Although you can quickly own your own car through a loan, you must also think carefully and make sure that you can bear the pressure of repayment before buying a car with a loan. After all, the purpose of having a car is Better enjoyment, and if you can't repay the loan, you won't be able to enjoy it. So you need to understand your situation first before deciding whether to take out a loan to buy a car.

Should young people take out a loan to buy a car?

The following answers are based on young people themselves or childless couples, regardless of the help of parents or others. If you want to say that your parents can help you pay the down payment, then there is no need to ask this question. I don’t think about the ability to buy it in full, but I want to invest in interest-free wool.

Is a car just needed?

Rigid necessity means that all aspects of work and life are necessary and cannot be delayed.

For example, your job after graduation is a certain distance from your home, requiring daily commuting, and public transportation is not convenient;

The nature of your job must be consistent. A trolley to support you;

My daughter-in-law is pregnant and her family is about to have a baby, so she needs a trolley to serve you, etc.

Including but not limited to any of the above, then you really need to buy a car. The problem is that most young people cannot afford to buy a car in full when they have just graduated or just got married, especially those with mortgages. Therefore, buying a car with a loan has become a very good way.

Should I take out a loan? You need to understand your own actual situation.

Single, if you have a monthly salary of 6,000 and no other debts (mortgage, etc.), are not considering getting married for the time being, and the cost of living is not high. If you have tens of thousands in savings or save a down payment, you can still get an interest-free mortgage for a mobility scooter within 100,000. For example, with a loan of RMB 60,000 and 24 interest-free installments, the monthly payment is only RMB 2,500, leaving you with RMB 3,500 left at your disposal. Assuming that you drive 15,000 kilometers a year, the bulk of the cost of maintaining a car is 7,500 for gas, 1,000 for two maintenances, and 2,500 for insurance per year. The total salary is 11,000, with an average of just over 900 per month. Of course, I didn’t count factors like parking your car, washing your car, or paying fines. If you are in a relationship, you need to consider whether your partner will cost you money.

For a young couple, it is calculated as receiving 20,000 yuan per month. If you only have a mortgage of about 3,000, and you don’t want to have children within two years. You can mortgage a car worth more than 100,000 yuan. No matter how expensive it is, you and your wife can afford it, but you need to consider storing it for a few years.

What level of car is depends on what kind of car maintenance cost it is. It is impossible to calculate this accurately because there are too many uncontrollable factors. For example, for my two cars, each one travels about 15,000 kilometers per year. The annual maintenance cost of Sylphy is about 10,000, and the annual cost of C-class is almost 27,000.

In general, whether you should take out a loan to buy a car depends on whether your disposable income can support the monthly cost of maintaining a car.

Finally, if you want to get a loan to buy a car, don’t think that it is a loan anyway, and a loan of 60,000 and a loan of 100,000 are the same. Just buy enough. A car is a consumer product, and it will depreciate. Don’t worry about other people’s opinions. Putting aside the issue of high loan payments and high monthly payments, there is a difference between buying a Sylphy Lavida Corolla and buying a Magotan Accord Camry, let alone the A43 series C-class.

That’s it for the introduction of whether you should take out a loan to buy a car.