Prepaid interest of automobile installment refers to a certain amount of interest or expenses that need to be paid before buying a car, which is a kind of fee charged in advance in installment payment.
Such expenses are usually added to the total car purchase price, so car buyers need to consider this part of the expenses in order to make better decisions.
Prepaid interest is usually the price of lending services to banks or financial institutions, because they provide you with installment or lease plans, and they need to use prepayment to get a return. In addition, it should be noted that the amount of prepaid interest usually varies from organization to organization, so you must carefully check the relevant contracts and terms during the shopping process to avoid additional unnecessary expenses.
Second, what does the upfront cost of buying a car mean?
The upfront cost of buying a car means upfront interest. Advance payment for car purchase means that after the loan is successfully obtained, the payer needs to pay the interest corresponding to the loan amount in advance, and then the payer can issue this part of the loan to the lender. Nowadays, the requirements of small loan products are becoming more and more strict, not only to check personal credit information, but also to require high sesame credit score and high credit card requirements.
Definition of prepaid interest
Pre-interest is a method adopted by some private car loan platforms, which can lock in the income in advance. The borrower needs to pay part of the interest, and the remaining fees will be repaid in installments with the principal, which is actually equivalent to the handling fee. Many places will not invoice you. Prepaid interest is actually a kind of "beheading interest", which belongs to pre-loan charges and does not meet the requirements.
If the sales consultant recommends a successful loan, they can earn more money according to the loan amount and the handling fee charged. Generally, the automobile manufacturer will give a certain subsidy to the 4S shop, referred to as financial commission, and the 4S shop will charge the customer a loan fee. A loan project can earn two profits from manufacturers and customers.
3. What do you mean by paying interest in advance to buy a car? Who took it?
Just like buying a house, you have to pay some cash (down payment) when buying a car, and then pay some money in fixed installments every month.
0 down payment 0 interest means that there is no down payment, only monthly installment, and no interest is charged in installments. However, it is generally unsalable.
4. What do you mean by paying interest in advance to buy a car? Who took it?
Just like buying a house, you have to pay some cash (down payment) to buy a car. Money with 0 down payment and 0 interest is free of down payment. You only need to pay by installment every month, and you don't charge interest by installment. However, it is generally unsalable.