What method should I choose for car installment?

Nowadays, the more popular car installment methods mainly include credit card installment loans, bank installment loans and automobile finance company installment loans. In addition, there are several other methods such as guarantee company and finance company loans. Different loan methods have different methods of how to buy a car with an installment loan. The following is a brief introduction to the three common installment payment methods for car purchases: credit card installment loans, bank installment loans, and auto finance company installment loans.

1. Credit card installment loan

Credit card installment loan is the most convenient way among the three. Credit card installment loan does not require the car buyer to provide collateral, but only needs to provide sufficient information to the buyer. The card-issuing bank only needs to prove its repayment ability, and it is more convenient to handle. Each bank has different methods for installment payment. In addition to the products in the credit card installment payment catalog, some banks have specific requirements for the purchase location and amount.

2. Auto finance company installments

For auto finance company loans, car buyers go directly to the corresponding 4S store of the auto finance company to select a good car and provide corresponding services according to their requirements. Required information, such as proof of identity, income, and residence, then fill in some corresponding forms, and then sign a contract according to the requirements of the financial company, and you can basically wait to pick up the car.

3. Bank installment loan

Compared with the previous two, bank installment loan requires car buyers to provide valid rights pledge or collateral recognized by the bank, and the approval time generally takes one There are many fees, including guarantee fees, capital verification fees, lawyer fees, mortgage fees, home visit fees, mortgage registration, insurance deposits, etc. The amount is generally about 5% of the loan amount.

It is easy to see from the above introduction that buying a car through a credit card installment loan is a good choice. Compared with bank installment loans and car finance installment loans, it has the advantages of fast approval and no interest (but there are handling fee) and low fees, it is the best way to buy a car in installments.

What are the conditions for a car installment loan?

Conditions for a car installment loan:

1. The lender must be 18 years old or above and have full civil conduct ability.

2. Have signed a car purchase contract and have the ability to pay the down payment.

3. There is no overdue record or bad credit information in the credit reporting system of the car loan applicant.

4. The car loan applicant has a stable job and source of income, and can repay the loan on time.

5. Have legal identity certificate, and some regions and institutions also need to provide real estate certificate or property mortgage.

6. Other regulations of local car loan policies also need to be met.

Notes on car installment loans

1. As long as the above conditions are met, you can buy a car with an installment loan even if you don’t have a job.

2. Many car owners also ask whether they can pick up the car on the same day they buy a car in installments. This depends on the efficiency of the bank or car loan institution. After all, it takes 2-3 working days to approve the documents. It can be completed within a week at most, and the car owner will be notified to pick up the car at the designated store.

3. It should be noted that 4S must provide the documents when picking up a car with a loan: car purchase invoice, certificate of conformity, vehicle consistency certificate, motor vehicle registration certificate, three-guarantee certificate, vehicle user manual, and new car delivery confirmation Tables, etc. For details, please consult the 4S store.

There are several ways to car loan installments

The first is bank mortgage

This is also the most traditional way. Like a house mortgage, it generally requires a down payment of more than 3 layers. , the maximum installment period is 4 years, and most are 3 years. The fee is usually a three-year base interest rate or an increase of 10% from the base rate. When converted into a handling fee, it is between 9.5-10.5 for three years.

The second is credit card installment

There is no interest in credit card installment, but the interest is converted into a handling fee and charged in one go. The standard fee is RMB 12 for three years, but many banks will offer discounts, usually between RMB 9 and RMB 10.

The third is corporate finance

That is, the car installment business provided by the group company where the car dealer is located, the handling fee is around 12.

The fourth is the guarantee company

This model actually adds a guarantee company between the car customer and the bank, and the fee is generally more than 13.

From the perspective of time, the processing time of the above four methods is guarantee company, bank mortgage, corporate finance, and credit card installment in increasing order. According to the charging situation, generally speaking, bank mortgages, credit card installments, corporate finance, and guarantee companies increase in order.

The scope of application of credit card installment:

1. Due to the limited credit limit of general credit cards, card-issuing banks generally require cardholders to provide proof of financial resources. The financial proof recognized by the bank includes real estate certificates. Or commercial housing sales (pre-sale) contracts and house purchase invoices. Some banks require the credit card itself to have an overdraft limit of 100,000 yuan to 200,000 yuan. Some banks allow cardholders with good credit to apply for a separate credit limit to purchase a car in installments.

2. It is obvious that more and more banks across the country will launch credit card installment car purchase services in response to customer needs. There are China Construction Bank Dragon Card installment car purchase business, Bank of China "Che Loan Tong" business (only in Beijing area), China Merchants Bank "Car Purchase Easy" business, Minsheng Bank "Car Purchase Tong" business, Industrial and Commercial Bank of China Peony Card installment car purchase business, The installment car purchase business of some local city commercial banks, such as Hankou Bank, Ningbo Bank, etc.

3. However, each bank has its own threshold: China Merchants Bank requires a down payment of more than 30 yuan to be able to pay in installments, while ICBC said that it can pay in full. Some banks offer zero handling fees for some models. In addition, the installment rates are different for different car models and different terms. Some banks only provide installment for designated car models.

How to pay for a car in installments

The calculation formula for installment payment is total down payment = car selling price =Purchase price of new car - Car selling price X down payment percentage; average monthly repayment = total loan amount

According to the regulations of the People's Bank of China from 2015, the down payment ratio for personal loans and car loans shall not be less than 20%. Therefore, a bank loan of around RMB 100,000 for a car requires a down payment of at least RMB 20,000. Of course, judging from the down payment situation in the industry, most car loan institutions or dealers require a down payment of more than RMB 30.

The installment loan car purchase process is as follows:

1. First go to the bank or financial institution where you want to insure and apply. You must also submit application materials, including ID card, income certificate, real estate certificate, Household register, other relevant loan contracts, etc.

2. After passing the review, you can sign a loan contract and a guarantee contract. Of course, you can choose to go through the mortgage registration procedures or do relevant notarization.

3. The bank agrees to grant the loan and transfers the money to the dealer or personal account in accordance with the contract.

4. Car loan applicants must repay on time. For those who settle the loan early, a certain penalty will be charged. Generally, if the repayment is overdue for 3 months, the bank or financial institution will call to urge you, but if you still do not repay for more than 3 months, it may be entered into the personal credit system. In serious cases, you may be sued, and you have the right to seize the vehicle. Tow it away and use the proceeds at auction to pay off the debt.

5. If the loan is settled normally, you can get back the loan settlement certificate and relevant mortgage certificates with valid documents, and go to the original mortgage registration department to go through the mortgage registration cancellation procedures.

The above content refers to Pacific Automotive Network-How to calculate car installments