Although it is wonderful to buy a car with a loan, if you don't consider your actual economic situation and don't understand all kinds of knowledge about buying a car with a loan, it will be miserable and not worth the candle. Before buying a car by loan, car buyers must understand four major issues, such as how much monthly income is suitable for buying a car by loan, how to treat zero down payment, low expected annualized interest rate and so on. Question 1: How much monthly income can I borrow to buy a car? Individuals or families with a monthly income of less than 6,000 yuan are not suitable for loans to buy a car. Because after buying a car with a loan, in addition to repaying the principal and interest of the loan on a monthly basis, you also need to spend money, parking fees, maintenance fees, road and bridge fees, road maintenance fees, insurance fees and other car maintenance expenses, with an average of 2,500-4,000 yuan per month. It can be seen that if there is no stable high income, it is difficult to maintain the high monthly expenses, so that you can't make ends meet or can't support it. If a family has a mortgage, it is necessary to rationally weigh income and expenditure to avoid the impact of impulsive consumption on the economic situation and quality of life. Question 2: How to treat zero down payment and expect low annualized interest rate? It is often seen in the market that some used car dealers and loan intermediaries promote zero down payment, low expected annualized interest rate or even no interest at all, as a promotional means to attract consumers to buy in buy buy. It looks really attractive. In fact, most of these concessions are based on raising car prices and increasing agency fees. Therefore, the rights and interests of consumers should not be lost because of greed for small profits. Legal and reliable auto loan procedures shall be handled by commercial banks or regular auto financing agency companies that conform to the Measures for the Administration of Auto Financing Companies. Question 3: What will happen if you forget to repay the principal and interest on time? According to the regulations of commercial banks, the lender shall pre-deposit the principal and interest repaid by installments in the settlement account in advance. If the borrower fails to repay the principal and interest on time, the bank will require the borrower to pay a certain amount of overdue fine, and will take measures such as detaining, recovering the mortgaged vehicle and investigating the guarantor's responsibility according to the specific situation. In addition, banks will give borrowers bad credit records, and borrowers with bad records will find it difficult to apply for loans in the future, and even be jointly "blocked" by various banks. Question 4: Can I prepay? In order to reduce the pressure of debt service and reduce the repayment amount, many people will choose long-term car loans, but this will increase interest and total repayment amount. There may be savings or income increase or a large amount of capital investment during the repayment period, so that the borrower has the economic ability to pay off the loan in advance during the repayment period. At this time, you can consider paying off all or part of the principal of the remaining loan in advance, so as to shorten the loan period, make the car truly your own and reduce the loan interest.