It is understood that at present, there are three ways to buy a car with domestic loans: bank car loan, auto finance company loan and financial leasing. So, which loan method will be more cost-effective for consumers? Let's compare it.
Bank car loan $:% has low interest rate, complicated procedures and high expenses
Personal car loan provided by banks is the most traditional car loan mode. Now, car loans provided by banks can be divided into "direct customer" and "indirect customer". "Indirect customer" means that borrowers can first go to the bank's special car dealer to buy cars, submit relevant loan application materials, and the car dealer will submit them to the bank on their behalf.
after investigation and approval, banks sign loan contracts and guarantee contracts, and go through notarization and insurance procedures. "Direct customer service" means that the borrower first goes to the bank to apply for a loan, and then goes to the special dealer to buy a car after the bank agrees. The loan term is generally 3 years, and the longest is not more than 5 years (inclusive). The loan interest rate is calculated according to the loan interest rate for the same period stipulated by the People's Bank of China.
Advantages: The advantage of bank car loan is that the interest rate is relatively low. Although the interest rate of bank car loan will increase after the central bank raises interest rates again, the 1-3-year interest rate will be adjusted from 6.3% to 6.3%, and the 3-5-year interest rate will be adjusted from 6.12% to 6.48%, but it is much lower than the interest rate of auto finance companies which is more than 8%. In order to attract customers, some banks have reduced the down payment ratio, extended the loan period and lowered the loan interest rate according to the customer's integrity qualification.
Disadvantages: However, on the whole, the bank car loan application procedures are complicated, which requires the car buyer to provide a series of proof materials and valid rights pledge or collateral that can be recognized by the bank or a third-party guarantee with compensatory ability. If it is an "individual" loan, it is also necessary to hold a car purchase agreement or a car purchase contract signed with a special dealer. If you don't need a guarantor for local household registration, the procedure is quite complicated and the loan rate is not high. As banks have recently lost in many car loan cases, banks will definitely increase the intensity of loan review, and the difficulty of loans must be even greater. In addition, some banks have to pay other fees for car loans, such as guarantee fees, capital verification fees, attorney fees, mortgage fees, etc., but they have to pay much higher handling fees than auto financing companies while the loan interest is low. It is understood that guarantee companies generally provide loan guarantee business for car buyers, and charge an annual guarantee rate of 1%~1.2% of the loan amount and the acceptance fee for employees' on-site service. If the car buyer buys a car with a loan of 1, yuan and the loan period is 3 years, he will have to bear the guarantee amount of 1, yuan (loan amount) ×1% (annual guarantee rate) ×3 years = 3, yuan or 3,6 yuan, and the acceptance fee in 6 yuan or 8 yuan. Some dealers have agreements with banks, although they don't need guarantee fees, but the conditions are quite high. For example, if the buyer buys a car of 2, yuan, the lender has no other loans, and the monthly income is 8, yuan, the down payment needs 4%.