The first choice is vendor finance, because many financial vendors will have preferential policies, such as partial concessions. Although some mortgages will be interest-free, the interest-free amount is generally between 30% and 50%. Factory finance is more suitable for consumers with relatively good economic strength and the procedures are relatively simple.
The second type is bank mortgage, which generally requires a down payment of 30%, and it is not interest-free, so interest needs to be paid. Bank mortgage loans have strict credit requirements for individuals. If it is because of expectations and other behaviors, it will be difficult to deal with. Bank mortgage is more suitable for consumers with good credit information and average economic strength.
Finally, there are loans from financial institutions. The down payment for such loans can be as low as 20%. Usually, the requirements for credit information are not too high, but more information needs to be prepared, and some need mortgage. The loan interest of financial institutions is usually higher than that of banks and manufacturers, so this loan model is generally not recommended.
The first choice of the above three kinds of loans should be manufacturer finance, followed by bank loans, and loans from some financial companies are not recommended. Need to remind everyone that no matter what kind of loan, 4S stores will charge a certain fee. These fees are usually charged by 4S shopping malls, so they are generally negotiable.
Some mortgage loans still have traps, especially loans from financial companies. Many people don't really buy cars, but rent cars to consumers in the form of "purchasing by rent". Generally, this will attract consumers with low down payment and low monthly payment, and then charge consumers a high fee after the lease expires. Finally, consumers are in a dilemma. You must study the contract carefully when buying a car by mortgage, because renting a car and buying a car by mortgage are completely different.
Finally, consumers need to be reminded that the purchase cost of the vehicle must be calculated when buying a car by mortgage. At present, many repayment methods are based on average capital, so it is relatively easy to calculate. The monthly payment multiplied by the monthly payment plus the down payment is the total amount of car purchase, and then the total amount of car purchase is subtracted from the price of the car itself, and finally the interest expense. Vehicles are consumer goods, so they depreciate. If the loan interest is too high, the residual value of the vehicle involved will be lower and the loss will be greater when it is sold. Therefore, the interest of mortgage car loan must be considered.
At present, mortgage car purchase is very popular, consumers can buy their favorite cars with little money, and 4S stores are also keen to promote mortgage car purchase, because 4S stores will charge a certain handling fee to maximize profits. However, in addition to the down payment, taxes and insurance, mortgage car purchase should also consider the monthly payment, which requires everyone to have a long-term stable income, otherwise there will be a breach of contract.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.