There are various ways to buy a car loan. Different expected annualized interest rates, quotas, terms and repayment methods make car buyers see a variety of things, and choosing a car loan that suits them has become a topic of concern.
1. Banks apply for car loans (including personal consumption loans/car loans/credit card installment loans)
Loans to banks include direct customers, that is, individuals take the initiative to apply for loans from banks, which belong to personal consumption loans; The other is indirect, that is, car buyers choose banks that cooperate with 4S stores to apply for loans, which can generally be carried out by car loans or credit card installment loans. The above three loan methods all have the following characteristics:
Suitable for people: borrowers with good personal credit, stable work income, and guarantees and collateral.
Expected annualized interest rate: The expected annualized interest rate of bank car loans will fluctuate on the basis of the expected annualized interest rate of the central bank's personal loan benchmark (usually between-10%-30%). For example, for high-quality customers, BOC's car loan can be reduced by10%; ICBC will implement it according to the expected annualized interest rate increase 10% set by the central bank in the same period.
Tips: In the base year, the central bank expects the annualized interest rate to be 1- 6%, and the annual loan amount to be 1-3 years: for a new car, the maximum loan amount generally does not exceed 80% of the car price.
Guarantee method: the bank has strict requirements on the borrower's income, collateral and other assets, and the guarantee procedures are cumbersome.
Repayment method: average capital and equal principal and interest are the main methods, and only a few banks have flexible repayment methods, such as CCB and Bank of Communications.
Loan term: the longest is 5 years, and credit card installment payment generally does not exceed 2 years. Advantages and disadvantages of applying for a car loan from a bank;
Advantages: the bank has no requirement for loan mode, and supports multi-mode and multi-brand loans; The expected annualized interest rate of bank loans is lower than other methods; The applicant's materials are complete, and the bank loan time is generally 10-90 days.
Disadvantages: strict loan application conditions; Require consumers to make a down payment of 20%-40%.
2. Auto financing company
Most auto financing companies are jointly established by automakers and banks. General auto dealers will provide customers with auto financing company loan services, which generally have the following characteristics:
For the crowd: the down payment for car purchase is less (only more than 20%); Failing to meet the conditions for applying for bank auto loans; People who need more flexible repayment methods.
Expected annualized interest rate: the loan is convenient and fast, but the expected annualized interest rate is high (generally around 10%). Loan amount: under normal circumstances, 80% of the car price can be provided as mortgage/guarantee: generally, real estate and other collateral or guarantor are needed.
Flexible and diverse repayment methods: it can meet the needs of different car buyers and different income characteristics. Common repayment methods of auto financing companies are suitable for people:
Equal principal and interest: the monthly repayment amount is the same. Suitable for car buyers with stable income and expenditure.
Average capital: the monthly payment decreases month by month with the loan time, and the total interest expenditure is less than the equal principal and interest. Suitable for people who can accept the initial monthly payment.
Flexible credit granting: for example, the down payment is 50%, the remaining loan is 50% (the ratio of the down payment to the second installment can be adjusted), the interest of the same amount is paid every month during the loan period, and the final payment of the principal is paid at the end of the loan period. And when the loan expires, the car buyer can also have three choices: one-time payment, applying for deferred payment (that is, applying for a second loan) or replacing the used car with a new car. This method is suitable for people with short-term capital shortage, low monthly demand and uncertain income.
Installment repayment: the loan is divided into several stages, each stage contains several repayment stages, and the total repayment amount of each stage is different in each single stage. For example, the car loan of 6,543,800 yuan is divided into three sections, with the repayment of 20,000 yuan in the first year, 30,000 yuan in the second year and 50,000 yuan in the third year. When repayment is made in this way, there are three options at maturity (see Scheme 3). This method is suitable for people with uncertain income.
Advantages and disadvantages of applying for a loan from an auto financing company;
Advantages: low loan threshold and flexible repayment method.
Disadvantages: auto financing companies are mostly limited to a single car brand; The loan is expected to have a high annualized interest rate.
3. Other ways
Bank loan and auto financing company are two main ways of auto loan. Borrowing money by other means is generally in the following three situations:
(1) Auto financing companies without small-brand cars.
(2) Personal credit does not meet the application conditions of banks or auto financing companies; (3) The down payment of car buyers is not enough.
Advantages and disadvantages of other lending methods:
Loan channels: companies, guarantee companies, pawn shops, P2P loans, etc.
Advantages: the loan procedure is simple and the loan speed is fast.
Disadvantages: These methods all have access fees, and the expected annualized interest rate of loans is higher than the other two main methods.
In addition, car buyers should be careful of the following minefields:
Beware of conditional insurance, some dealers use a certain auto insurance as a cover, but force car buyers to buy designated auto insurance, which is often more expensive than buying it themselves. So sending insurance is not necessarily a good thing.
With zero expected annualized interest rate, many car dealers will waive car loan interest within 1 year, but consumers have to pay the car loan fee, which is actually the bank interest fee, but the name has changed.
Credit card installment payment may bring some problems: for example, if you don't repay on time, you will have to pay a penalty interest, which will affect your personal credit; After the car loan is completed, the credit card will be idle and an annual fee will be incurred.
Don't ignore the price concessions. Many car dealers offer interest-free car loans to car buyers, but car buyers should pay attention to the fact that they can't enjoy preferential car prices when enjoying interest-free car loans, but can only buy them at the manufacturer's guide price. The interest-free amount enjoyed may be less than the car price discount.
Liquidated damages, for those who intend to repay in advance, we should pay special attention to whether there are provisions on liquidated damages and the proportion of liquidated damages in the loan contract for prepayment.
How to choose cars by stages?
At present, the popular automobile installment methods mainly include credit card installment loan, bank installment loan and auto finance company installment loan, in addition to several ways such as guarantee company and finance company loan. Different loan methods have different ways to buy a car by stages. Here are three common ways to buy a car by installment: credit card installment loan, bank installment loan and auto finance company installment loan.
1. credit card installment payment
Credit card installment loan is the most convenient way among the three. Credit card installment loans do not need buyers to provide collateral, but only need to provide sufficient information to the issuing bank to prove its repayment ability, which is more convenient to handle. Banks have different ways to pay by installment. In addition to the goods in the credit card installment catalogue, some banks have specific requirements on the place and amount of purchase.
2. Staging of auto financing companies
Auto financing company loans, car buyers go directly to the corresponding 4S shop of auto financing company to choose a good car, provide corresponding information according to their requirements, such as identity certificate, income certificate and residence certificate, then fill out some corresponding forms, and then sign a contract according to the requirements of the finance company, so they can basically wait to pick up the car.
3. Bank installment payment
Compared with the first two, bank installment loans require car buyers to provide effective rights pledge or collateral recognized by the bank, and the approval time usually takes about one month; And there are many expenses, such as guarantee fee, capital verification fee, lawyer's fee, mortgage fee, home visit fee, mortgage registration, insurance deposit, etc., which are generally about 5% of the loan amount.
Through the above introduction, it is not difficult to see that it is a good choice to buy a car by credit card installment loan. Compared with bank installment loans and auto financing installment loans, it has the characteristics of fast approval, no interest (but there is a handling fee) and low cost, and is the best way to buy a car by installment.
What are the requirements for car installment loans?
Automobile installment loan conditions:
1. The lender must be 18 years old and have full capacity for civil conduct.
2, has signed a car purchase contract, and has the ability to pay the down payment.
3. There is no overdue record or bad credit information in the credit information system of the car loan applicant.
4. Car loan applicants have a stable job and income source and can repay on time.
5. There is a legal identity certificate, and some regions and institutions also need to provide proof of mortgage of real estate or goods.
6. It also needs to meet other provisions of the local car loan policy.
Problems needing attention in automobile installment loan
1. As long as the above conditions are met, you can buy a car by stages without a job.
2. Many car owners ask if they can pick up the car on the day of buying it by installment. This is based on the efficiency of banks or auto loan institutions. After all, it takes 2-3 working days to approve the materials, and it can be completed within one week at the longest. At that time, the owner will be informed to pick up the car at the designated store.
3. What needs to be noted is the documents that must be given when the 4s loan takes the car: car purchase invoice, certificate of conformity, vehicle registration certificate, three-guarantee certificate, vehicle manual, new car delivery confirmation, etc. For details, please consult the 4s shop.
What are the procedures for buying a car by installment loan?
Nowadays, the high cost of living has made us feel stretched in daily consumption, so buying a car by stages has become the first choice for everyone to buy a car. So what are the procedures for buying a car by stages? Let's have a look.
What are the procedures for buying a car by installment loan?
1, basic content
Automobile mortgage refers to loans issued by banks to borrowers who apply for car purchases in their own names to pay for the cars they buy. The repayment method is to repay the principal and interest by installments. The term of automobile mortgage is generally not more than 5 years.
2. Application conditions
Generally, the borrower is required to be a permanent resident of the place where the loan bank is located and has full capacity for civil conduct;
The borrower has repayment ability and no record of non-performing loans.
3. Treatment process
Apply for a loan: the borrower fills in the loan application form and provides relevant information.
Loan review: after receiving the borrower's application and the materials that meet the requirements, the bank will review the credit status, repayment ability and authenticity of the materials of the borrower and guarantor according to the regulations, and make a reply after the review.
Signing a contract: After the bank approves the loan, the borrower goes through the following procedures:
Banks sign loan contracts and guarantee contracts with borrowers, and go through notarization, mortgage registration, insurance and other related procedures.
Lending: After the borrower completes the relevant procedures, China Merchants Bank will pay the loan to the borrower's personal account and transfer the loan to the relevant payee's account according to the borrower's entrustment.
4. Application materials
The identity certificate, marital status certificate and household registration book of the borrower;
Proof of the borrower's occupation and economic income issued by the department recognized by the bank;
The car purchase agreement or contract signed with the designated dealer of the bank;
A deposit certificate or down payment receipt of not less than the down payment;
If the property is mortgaged or pledged, a list of mortgaged property or pledged property, ownership certificate, consent certificate of the person who has the right to dispose of the property (including the property owner) and mortgage appraisal certificate issued by the competent department shall be provided;
If a third party provides a guarantee, it shall issue a written document, relevant credit certification materials and a certain percentage of the deposit agreed by the guarantor;
Other information required by the bank.
5. credit card installment payment
According to the credit status of credit card holders, banks will increase the installment quota of their credit cards to meet the needs of cardholders to buy designated brand cars during the disposal period of designated dealers. Cardholders can repay the car purchase money in monthly installments only by bearing a certain handling fee, which fully reduces the repayment pressure.
Handling fee: You don't need to pay bank loan interest to buy a car by installment with a credit card, but you have to bear a one-time handling fee. Handling fee = installment amount × cardholder's handling fee rate (the handling fee is included in the first month's bill after installment purchase), and the handling fee rate of each bank is different.
Down payment: If you buy a car by credit card, you generally need to pay a down payment of not less than 30% of the car price.
6. Repayment method
Waiting amount for debt service
When calculating, the interest generated by the monthly loan balance is calculated first, and the repayment principal of the current month is formed after deducting the interest payable from the equal repayment amount. At the initial stage of repayment, due to the large loan balance, interest accounts for a large proportion in monthly repayment, and the repayment speed of principal is relatively slow. With the passage of time, the loan balance gradually decreased, the proportion of interest gradually decreased, and the proportion of principal gradually increased. This repayment method is more suitable for people with fixed year-end bonus or fixed annual income.
matching principal repayments
The average capital of car loan refers to the repayment method selected by the borrower in the average capital after the car loan. During the repayment period, the total loan amount is divided into equal parts, and the same amount of principal and interest generated by the remaining loan in the month are repaid every month. Because the monthly repayment amount is fixed and the interest is getting less and less, the lender is under great pressure to repay at first, but with the passage of time, the monthly repayment amount is getting less and less. Calculation formula of average capital loan: monthly repayment amount = (loan principal/repayment months) (principal-accumulated repaid principal) × monthly interest rate.
Wisdom repayment
This repayment method is a new way of automobile repayment, that is, the loan is divided into two parts, which are repaid in the first and last installment respectively. There are three different repayment schemes to choose from after the expiration of the wisdom balance payment: scheme 1: return the balance payment in one lump sum when it expires; Option 2: Refinancing the balance and applying for loan extension 12 months; Option 3: Return the balance through vehicle replacement.
Worry-free wisdom repayment
Commonly known as "loan half, pay half"; 50% repayment at the end of the loan period. At the end of the loan period, there are three options: paying off the balance in full; Application for extension 12 months