Buy a car. Our common loan to buy a car is a bank car.
And auto financing loans. What's the difference between them? I'll tell you today.
I. Loan Procedures
Because bank car loans are bank loan products, car buyers are generally required to provide ID cards, real estate licenses and other information, and usually need to use the house as collateral, find a guarantee company to guarantee and pay the deposit and handling fee; The car financing loan does not need any guarantee from the car buyer, as long as the car buyer has a fixed occupation and residence, stable income and repayment ability, and good personal credit.
Second, the down payment ratio
Under normal circumstances, car buyers choose the bank as the down payment of 30% of the car price, and the loan period is usually 3 years, and they need to pay the down payment of about 10% of the car price and related handling fees; However, the down payment ratio of auto finance loans is low and the loan time is long. The minimum down payment is 20% of the car price, and the longest life is 5 years, without paying the mortgage fee.
Three. Expected annualized interest rate of loan
Compared with its auto financing loans, the expected annualized interest rate of bank auto loans is relatively low, which is determined strictly according to the expected annualized interest rate of banks; The expected annualized interest rate of auto financing loans is relatively high, which can rise by about 10% on the basis of the benchmark expected annualized interest rate.
Fourth, bank car loans.
Because it is a bank's own loan product, the expected annualized interest rate of bank car loans will be relatively low, and banks will also give discounts such as reducing the down payment ratio, extending the loan life and reducing the expected annualized interest rate of loans according to the credit qualification of customers. However, just as you can apply for a credit loan in a bank, the bank car loan is also faced with complicated application procedures, which require the car buyer to provide a series of proof materials and valid rights pledge or collateral that the bank can recognize.
Verb (abbreviation of verb) auto financing loan
Auto financing companies are more professional and humanized, with a minimum down payment of 20%, lower application threshold and more convenient procedures, so they can pick up the car as soon as possible. The disadvantage of auto financing company's auto loan is that the expected annualized interest rate of the loan is high, and some are close to 8% in five years.
In fact, whether car buyers choose bank auto loans or auto financing loans, they need to comprehensively consider the above five points, such as loan procedures, down payment ratio and expected annualized interest rate of loans, compare their respective advantages and disadvantages, and then choose the appropriate auto loan scheme in combination with their actual economic situation.