Is it interest-free to buy a car in installments?

Buying a car in installments is interest-free.

there is an interest-free loan for car purchase by installment. In fact, the so-called interest-free loan is just a selling point. Usually, there is no interest for car purchase by installment, but the installment fee will be charged. The longer the installment, the more the installment fee, which is sometimes higher than the interest on car loan.

car purchase by credit card installment is a credit card installment business launched by banking institutions. The credit limit that cardholders can apply for is 2,-2,, depending on the situation of some banks; There are three stages: 12 months, 24 months and 36 months. There is no loan interest rate for car purchase by credit installment, and banks only charge a handling fee, and the handling fee rates for different installments are different.

due to the limited credit limit of general credit cards, card-issuing banks generally require cardholders to provide financial proof. The financial proof recognized by banks includes real estate licenses or commercial housing sales (pre-sale) contracts and purchase invoices. Some banks require credit cards to have an overdraft limit of 1,-2, yuan, and some banks allow cardholders with good credit to apply for credit lines to purchase cars in installments.

obviously, there will be more and more banks offering credit card installment car purchase services nationwide with the needs of customers. There are China Construction Bank's Longka installment car purchase business, China Bank's "Car Loan Link" business (only in Beijing), China Merchants Bank's "Car Purchase Easy" business, Minsheng Bank's "Car Purchase Link" business, China Industrial and Commercial Bank's Peony Card installment car purchase business, and some local city commercial banks' installment car purchase business, such as Hankou Bank and Bank of Ningbo.

However, each bank has its own threshold: China Merchants Bank has to pay more than 3% down payment before it can be phased, while ICBC says it can be phased in full. Some banks can also get zero handling fee for some models. In addition, different models have different installment rates for different periods, and some banks only have designated models for installment.

Except that China Merchants Bank and Bank of Ningbo have clearly stipulated the installment number and handling fee rate, the installment number and handling fee, interest rate and other fees of other banks need to be determined according to the vehicle type.

Buying a car by installment with a credit card has also become one of the important channels for car loans. The most obvious advantage of credit card car loan is the loan interest rate. From the perspective of loan interest rate alone, credit card swiping by stages has a great advantage.

how to apply for an interest-free car loan?

go through the necessary formalities with the relevant financial institutions. The loan procedures are as follows:

1. Personal valid identity documents;

2. Household registration certificate or long-term residence certificate (residence certificate can provide utilities, telephone bills, etc.);

3. Personal income certificate, and family income or property certificate when necessary;

4. Work certificate of the current unit;

5. Marriage certificate and spouse ID card (you don't need to provide spouse's materials and marriage certificate if you are unmarried, but you need to provide divorce certificate or divorce agreement if you are divorced). The car purchase agreement, contract or letter of intent signed with the dealer (both new and used cars can be issued).

1. Buying a car with an interest-free loan

Buying a car with an interest-free loan, as the name implies, is to set the interest of the loan to zero, and only need to pay back the principal of the bank. However, interest is the profit point of these lending financial institutions.

Second, the loan target

One category is people with stable jobs and high incomes who want to buy a car but can't afford the full amount. These people are mainly young buyers under the age of 3. Because of their short working hours and limited savings, interest-free loans are very popular among these people.

The other category is some consumers who are good at financial management.

Third, car loan methods

There are two common loan methods in the market. One is "1-3 years interest-free loan method", which is also the most common mortgage method in the market. Consumers only need to pay the principal part of the car by mortgage, and all the interest generated during the period is borne by the dealer. However, only within the interest-free period stipulated by the manufacturer, the repayment is zero interest, and the expenses generated by interest will be paid normally for the remaining months.

the other is the "13-month interest-free loan method", which has a maximum time limit of 13 months, and the repayment within the specified time limit is zero interest, and prepayment is not supported.

IV. Precautions

The so-called zero interest rate means that consumers only need to pay a certain down payment when buying a car, and the balance can be paid to the lender in installments without paying any interest.

Regarding the car loan methods such as "zero interest rate" and "zero down payment", Chen Hongsheng, director of the public relations department of Dongfeng Citroen, said: "To put it bluntly, the car loan with" zero interest rate "and" zero down payment "is equivalent to disguised car sales promotion. Different from the situation abroad, the' zero interest rate' in China cannot be regarded as a real interest-free loan. Whether users can get actual price concessions still needs to be measured by users themselves. "

If the user chooses the" zero interest rate "car loan method, the car loan should be made on the basis of the full price of the original factory guide price of the vehicle. For example, if you buy a car with an official guide price of about 1, yuan, the market quotation may be as low as 85, yuan, but users must apply for a "zero interest rate" loan car purchase business at the price of 1, yuan. After the loan is finally paid off, the amount of interest-free part is considered as the preferential price for purchasing this model. In fact, the cost of buying this car has exceeded the actual market value of this car.

consumers should carefully consider this "zero interest rate" or "zero down payment" car loan method, and ask about the possible expenses in the middle of the service, otherwise it may not be worth the loss.

how much is the down payment for buying a car free of interest?

generally, at least 4% down payment is required.

car installment can be interest-free: generally, it is interest-free for two years, which varies from place to place. It depends on the 4S shop, and some stores need to pay a down payment of 4%. In addition, 4S shops will charge a handling fee, and you need to buy all insurance in 4S shop to pick up the car, depending on how much you need to buy the car, and pay for the old users by installment.

monthly repayment amount = loan principal × monthly interest rate × monthly interest rate ÷ The loan period for car purchase is one month. At present, the longest loan period for car purchase is no more than 6 periods (that is, 5 years), but it needs to be determined according to the user's situation, vehicle type and purpose. If the purchased vehicle is used for rental operation, car rental and other business purposes, the longest period is generally not more than 36 periods (that is, 3 years).

Interest-free loan

Interest-free loan to buy a car is a car loan preferential scheme proposed by dealers according to market demand, which reduces the pressure on consumers to buy a car to some extent. Interest-free car loan concessions are not available to all models, but there are certain restrictions. According to people familiar with the matter, not all models can enjoy this policy when buying a car with interest-free loans. Only those models that meet certain conditions can apply for interest-free car loans.

What does an interest-free loan for car purchase mean?

It refers to a car purchase scheme introduced by an auto financing company. Consumers can enjoy interest-free/zero-interest auto loans only by paying enough down payment for car purchase and paying off the loan within a certain period of time.

how long is a certain period? Generally, an auto financing company refers to one year (there are also more than one year, and the products of different companies are different). That is to say, if you choose to buy a car with an interest-free loan, the applicant for the loan must pay in installments within 12 months.

If the consumer can't repay the car loan within one year, the excess will still be counted as interest. In these 12 months, the interest on the car loan was paid by the car manufacturer or the car dealership. It can be seen that this interest-free loan to buy a car is also a gimmick to attract consumers.

Note: interest-freeloan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them, in which the interest rate is either free of charge by banks or paid by the government or corresponding institutions under agreed conditions. Strictly speaking, interest-free loans from banks are called interest-free loans; The government or the corresponding institution pays the bill, which is called a discount loan.

what are the interest-free conditions for car loans?

Requirements for interest-free car loans:

1. The lender must be at least 18 years old, have civil capacity and bear certain legal responsibilities.

2. Lenders need to have a stable income, which is an important basis for banks to lend to them.

3. The lender has a good reputation and certain repayment ability.

Interest-free loans for 1-3 years are common, that is, the lender does not need to repay the interest after paying off the principal in 1-3 years, and once the loan time is exceeded, it needs to pay the fees generated by the interest for the rest of the time.

Interest-free loan in March, compared with the previous loan method, is the time difference. The lender must pay off the loan within p>13 months, otherwise it will need to pay interest.

that's enough for the introduction of interest-free installment loan for car purchase.