First, the bank loans to buy a car
Commercial banks used to be the main force in the car loan market, but due to the frequent occurrence of bad debts and fraudulent loans, except for a few banks, many commercial banks have chosen to quit the car loan field. Nowadays, with the gradual maturity of the auto loan market, the personal credit system is gradually improved, and the bank's risk controllability is strengthened. Many commercial banks have also begun to increase their efforts to promote auto loan business.
Bank loans to buy a car can be divided into "direct passenger" and "indirect passenger". "Direct customer" means that the car buyer goes directly to the bank to apply for a loan, and then goes to the dealer to buy a car after the bank agrees. "Passenger-only" means that the borrower can buy a car at the bank's car dealer and submit relevant loan application materials. A car dealer applied for a loan from a bank. After the bank approved it, it signed a loan contract and a guarantee contract, and went through notarization and insurance procedures.
The main advantage of bank loan to buy a car is that the interest rate is relatively low, which fluctuates slightly on the basis of the central bank's benchmark interest rate. Moreover, some banks have taken preferential measures such as reducing the down payment ratio, extending the loan term and lowering the loan interest rate according to the credit qualification of customers.
However, the disadvantage is that the application procedure is complicated, and the buyer needs to provide a series of proof materials and an effective pledge of rights or a third-party guarantee with compensatory ability recognized by the bank.
Second, the financial leasing company
With the increasingly optimistic auto loan market, financial leasing companies have also joined in, providing the way of renting first and then buying or buying while renting. At present, some professional leasing companies have joined hands with dealers and banks to sell cars through financial leasing. That is, the loan is issued by the bank and used by the individual as the lessee. After the loan is paid off, the property right belongs to the individual. At present, the guarantee methods of rent-and-purchase consumption include deposit guarantee, credit rating, property guarantee and mutual guarantee. The installment period can be as long as 10 years, and the monthly repayment pressure of car buyers is very light. The down payment is very low, and some financial leasing companies even offer "zero down payment". At the same time, license plate, insurance, purchase tax, car decoration and other car purchase expenses can also be paid in installments.
Advantages:
1, low down payment and low monthly payment. Rent and purchase can choose zero down payment, and other car purchase expenses such as license plate, insurance, purchase tax and car decoration can also be paid in installments, which obviously reduces the pressure on car buyers with high monthly income.
2. Once the rent is not paid on time, it can be paid in advance through negotiation, and the car buyer will not face the risk of the vehicle being taken back for disposal.
3. The interest rate is very low. The interest rate of financial leasing is subject to the bank, which is generally the loan interest rate announced by the People's Bank of China.
Disadvantages: high total expenditure. Because there is no preferential interest rate of 10%, the total cost of financial leasing may be more than the new car loan products launched by banks.
Third, auto finance companies.
In 2004, auto financing companies had the right to carry out auto financing business. Subsequently, GM, Ford, Volkswagen and other foreign auto giants set up auto financing companies in China. A few years ago, the banking industry suddenly withdrew from the field of auto loans, which gave auto finance companies broad development space. It is understood that the down payment of auto finance companies is generally 20% ~ 30%, and the loan period does not exceed 5 years. Car buyers can buy from the dealers of their car companies when they choose the models they intend to buy.
Advantages:
1, flexible repayment. Auto financing companies generally provide standard credit and flexible credit, which are suitable for different consumer groups.
2. The procedure is simple. In terms of loan conditions, auto finance companies pay more attention to the personal credit of car buyers, taking education, income and work as reference standards, and do not need to pledge like banks, and foreign household registration will not become an obstacle to obtaining loans. Generally speaking, the materials that the lender must provide are: my household registration book, ID card, a copy of the household registration book, and the original proof of residence and income.
3. Loans are issued faster, usually within a few hours to a few days.
Disadvantages:
1, the loan interest rate is high.
2. If the consumer repays the loan in advance, it is necessary to pay liquidated damages.