What's the difference between buying a car with a loan and buying a car in full?

1, the handling fee is different.

When the manufacturer does not provide the zero-interest financial policy, consumers need to bear two additional expenses: loan interest and handling fee (everywhere); There is no charge for full payment in the process of buying a car.

2. The car purchase time is different.

Buying a car with a loan will enable many people who have confidence in their future income to consume and buy cars in advance, which will significantly increase the sales of cars; Many people can't spend a lot of money to buy a car at one time, and they need a certain amount of time to deposit.

Step 3 Pay different fees

You don't need a mortgage to buy a car in full, but you must pay: purchase tax, listing fee, compulsory insurance, travel tax, and insurance is purchased by the owner voluntarily.

Buying a car with a loan requires full insurance, which is what banks require nationwide. Because the property right of the car does not belong to the owner during the loan period, the owner uses the car as collateral. During the loan period, the title certificate, car purchase invoice and all-insurance policy must be placed in the bank, and the mortgage will be released after the loan is paid off.

4. Different interest rates

It takes 1-3 years to repay the loan, and interest shall be paid during the loan period; Buying a car in full is much less than buying a car with a loan, saving a lot of time and energy, and there is no need to pay financial service fees and loan fees.

5. Different insurance costs

Many 4S stores will have insurance companies to cooperate with them for a long time. Usually, when buying a car with a loan, 4S stores will ask customers to buy all insurance in the store, but not all insurance is suitable for everyone, so it is not cost-effective.

When buying a car in full, customers can buy insurance by themselves without going through a 4S shop, which also reduces the possibility of making money in a 4S shop.

6. Different maintenance costs

If you buy a car with a loan from a 4S shop, the subsequent maintenance and other expenses are basically linked to the 4S shop, and the 4S shop can earn maintenance fees from it; Buying a car in full, the basic first insurance is in the 4S shop, and the owner of the follow-up maintenance can choose at will.

Extended data

Basic knowledge of buying a car with a loan:

1, credit card loan is the most economical way to buy a car.

For customers who borrow money to buy a car, it is more economical to choose credit card installment payment than bank auto loans and auto financing companies. Usually, credit card installment payment is free of guarantee and interest, and only charges a handling fee.

At the same time, when buying a car by installment with a credit card, there is no mandatory requirement for insurance and renewal when buying a new car. Generally speaking, you only need to buy major insurance and theft.

However, in the way of credit card installment payment, banks will have higher requirements for applicants, generally requiring local accounts, stable income, no bad credit history, real estate and high-quality bank customers to be preferred.

2, the way to repay the loan in advance

Pay attention to the repayment time in advance. Usually, if the loan term is less than one year, banks and auto finance and consumer companies will charge a certain amount of liquidated damages. The amount of liquidated damages is calculated according to 5%-8% of the remaining loan amount, and the overall loan cost is much higher than the normal repayment. Therefore, cars with a loan term of less than one year do not need to consider prepayment.

If you want to repay the car with a loan time of more than one year in advance, you usually need to make an appointment with the original lending institution about half a month in advance. Different lending institutions have different requirements. At the same time, before prepayment, all relevant materials need to be prepared, including personal ID card, loan contract, prepayment agreement, previous repayment bill and repayment application form.

After the appointment is successful and the formalities are fully prepared, you can make repayment at the appointment place according to the appointment time.