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.