The amount of automobile consumption loan is much higher than that of credit card installment. Generally speaking, the upper limit of credit card installment is 200,000 yuan. Bank car loans can reach up to 80% of the car price, and the loan amount can be enlarged to 500,000 yuan. Therefore, as long as the conditions are hard enough, it is completely feasible to buy a luxury car with a bank car loan. In contrast, business owners will use this kind of loan more when upgrading and changing cars.

Second, the repayment method

The repayment of automobile consumption loans is more flexible. Its longest term can reach five years, and it can provide equal principal and interest. In terms of average capital, the repayment method of down payment or overpayment and underpayment in the middle is much more flexible than credit card installment. At the same time, the expected annualized interest rate of consumer loans is much lower than the handling fee of credit cards. Usually, the expected annualized interest rate of consumer loans is around 5%, while the handling fee of credit cards reaches 6% to 7%. For people who change cars frequently, consumer loans are also a way to reduce the cost of car purchase.