In recent years, more and more people buy cars. Many people are short of money when they dream of driving home. What shall we do? It is a general trend to buy a car with a loan. Many people want to borrow money to buy a car, or even zero down payment. So is it really reliable to buy a car with zero down payment? What's the catch? Let's take a look.
What's wrong with buying a car with a zero down payment loan?
In fact, criminals really pretend to be auto financing companies under the guise of buying a car with zero down payment. Generally, bank loans only provide 70% loans, while the so-called auto finance company will pay you 30% down payment.
When you go to pick up the car, take it away on the grounds of installing GPS or going through formalities. During the period, the car was pushed off with the requirements of "unfinished procedures" and "GPS installation". When you received the short message of repayment from the bank, the "auto financing company" could not be contacted, and the building was empty, but your new car was sold.
How to prevent the scam of buying a car with zero down payment loan?
These scams often use the mentality of being in urgent need of funds to implement loans, and there are extremely harsh conditions when signing contracts. In order to avoid this scam, we need to do the following two things:
1, don't be greedy and cheap. Generally, the zero down payment loan on the market will charge you in other ways, and the loan interest will be higher, which is actually not cost-effective.
When signing a contract, you must read the terms of the contract carefully. Before handling the "zero down payment", the company signed a harsh entrusted mortgage contract with the victim by means of shielding and deception, which led to his entry.
About "Is it reliable to buy a car with a zero down payment loan?" Here is an introduction for everyone. I hope to arouse everyone's vigilance, don't trust the so-called financial institutions easily, and choose a compliant channel to make loans.
What are the pitfalls of second-hand car loans?
1, "interest-free" ≠ "free"
Some banks have introduced the gimmick of "interest-free, zero interest rate" for second-hand car loans. Zero-interest loan means that consumers can drive their cars home without paying interest when handling car loan business, but they will charge fees, mortgage and other fees at the same time without interest. When applying for a second-hand car loan, be sure to ask what the handling fee is for the second-hand car loan.
2. The loan contract is mysterious.
Some careless consumers often ignore the terms when signing a contract, and eventually fall into the default trap. When signing a contract for second-hand car loan, it should be indicated that the repayment method is "equal principal and interest repayment method", but in the personal car loan printed by the bank, the repayment method has become "increasing the principal and reducing the interest".
In order to avoid this situation, consumers should carefully check the loan contract signed by the bank and the car purchase contract signed by the dealer and the buyer before buying a car, and understand the overall content of the contract, especially the interest, monthly repayment amount, repayment period and other related information.
3. Bundling sales is "tricky"
When applying for a second-hand car loan, bundling is almost common. For example, you must buy all the insurance and boutique gift packages through the company. Auto insurance may be purchased according to the maximum insured amount, and various supplementary insurances will be purchased to increase the premium, without any concessions. Therefore, we must pay attention to this situation and don't fall into the trap of bundling.
Extended data:
Many banks have launched the gimmick of "interest-free, zero interest rate" loans to buy cars, and many consumers are attracted by these attractive offers.
The so-called zero-interest loan means that consumers can drive their cars home without paying interest when handling car loan business. In fact, the seller will also charge fees, mortgage fees and other fees while paying interest. For example, in the way of bank credit card installment payment, although there is no interest on monthly payment, consumers need to pay a handling fee when handling installment payment business. This handling fee includes not only the interest of second-hand car loans, but also the profit of dealers in mortgage business.
Interest-free does not mean free. Although the bank's second-hand car loan is in the name of "interest-free", it converts the interest receivable into other nominal charges, such as handling fees.
When consumers apply for second-hand car loans, they must ask what the handling fee for second-hand car loans is.