Using credit card channels to purchase a car in installments is part of the car mortgage service. Through some car purchase installment services jointly launched by credit card issuing banks and car sales companies, that is, 4S stores, as long as you hold a credit card from a specific bank and the bank provides car installment services, you can apply for installment repayment services when purchasing a specific model. .

Due to the needs of financial supervision, most commercial banks have strict approval policies for automobile consumer loans, making it difficult for customers to apply for automobile loans. Moreover, the interest rates for loans through auto finance companies are too high, and the comprehensive annual interest rate is generally above 7%. Coupled with the vehicle mortgage procedures required by the auto finance company, the borrower has to pay additional mortgage fees and guarantee fees.

Auto finance companies provide loans quickly, and due to the increase in guarantee measures, auto finance companies' approval conditions for loan customers will be relatively loose.

Credit card car purchase installment payment refers to a credit card payment in which the credit card holder applies to the card issuer for part of the amount of the car he wants to purchase, repays the principal and interest monthly within the agreed period, and pays a certain handling fee according to the card issuer's regulations. Way.

If you buy a car in installments with a credit card, you need to pay a certain percentage of the down payment, and the remaining car payment will be repaid in equal installments every month. The maximum repayment period is 3 years, no interest is required, but a certain one-time financial fee is required.

Generally speaking, the advantages of using a credit card to buy a car in installments are as follows:

First, the approval process is fast and the information is simple.

This is also the biggest benefit of buying a car with a credit card. Using a credit card to borrow money to buy a car only requires that the credit card has a certain term and a good credit record. After providing your ID card, you can apply for a cooperative bank.

Second, the fees paid are cheaper than ordinary commercial loans.

Using a credit card to buy a car eliminates the interest expense incurred on the loan itself, which is the "zero interest rate, zero interest" often promoted by 4S stores. You only need to pay a portion of the handling fee, and the handling fee you pay is cheaper than the interest accrued on a typical commercial loan.

Thirdly, you can enjoy relevant discounts launched by 4S stores when purchasing a car with a mortgage.

Using a credit card loan to buy a car can enjoy the preferential policies of 4S stores, and the loan limit can be scored according to the regulations of the relevant bank. At the same time, the points generated by the loan can also be redeemed for related gifts at the bank.

However, are the above preferential policies for using credit cards to buy cars really "free"? For savvy businessmen, "the wool comes from the sheep" is always the unchanging truth!

Although using credit cards to purchase cars in installments has become a common way to buy cars, it is highly praised by car 4S stores and financial service companies. But the cost of buying a car is not a small amount. When using a credit card to buy a car by installment, you must pay attention to the following hidden problems.

Interest-free does not mean free.

Although credit card installment car purchases are advertised as interest-free installments, they are not free.

Credit card installment purchases require a certain handling fee, which is equivalent to the interest on a bank loan. Total installment handling fee = total installment handling fee rate. Many bank charges are included in the first bill after an installment purchase.

The current credit card installment fee rate is about 3%-12% depending on the length of the loan period. Different banks and dealers of different brands charge different car loan handling fees. Some designated models can enjoy zero handling fees (generally some slow-selling cars). If the car buyer wants to repay the loan early, the handling fee charged is non-refundable.

Car purchases with credit cards are often limited to designated models.

When using a credit card to buy a car in installments, car buyers must first determine which bank the car they choose is cooperating with, because using a credit card to buy a car in installments can only buy cars designated by dealers or manufacturers that cooperate with the bank. If you have a credit card from this bank, you can directly apply for installment purchase; if you buy a credit card, you need to apply for a credit card first and then buy the car in installments.

Many cardholders may also encounter credit limit problems, because the credit limit of ordinary credit cards is usually lower (generally less than

Bundling insurance is an unavoidable marketing trick.

“Zero interest rate” for credit card installment car purchases has become a common sales method for many automobile manufacturers. Credit card interest-free car loans, especially those from commercial banks, are mostly sold in bundles with insurance companies. Consumers purchase comprehensive insurance.

Many banks currently bundle insurance terms for credit card purchases.

Although banks do not require comprehensive insurance, the four major types of insurance, including car damage insurance, theft insurance, third party liability insurance, and vehicle and personnel insurance, are the most important types of insurance, and the insurance premiums are relatively high.

Terms such as "all insurance" and "all insurance" often used in car insurance are actually an insurance combination of four basic insurances and three additional insurances. The four basic insurances are vehicle loss insurance, commercial third party liability insurance, vehicle theft insurance and vehicle occupants insurance. The three additional insurances are glass breakage insurance, vehicle scratch loss insurance and special clauses without deductibles.

Take a new car worth 200,000 as an example. If the price of full insurance is more than 8,000 yuan, but only four basic insurances are purchased, the premium price will be around 6,000 yuan, with a difference of 2,000 yuan. If you buy 8,000 yuan of car insurance, the 4S store will earn at least 3,000 yuan in insurance rebates. This profit plus handling fee income is about 4,000 yuan. If you pay for a car in installments with a credit card, you will earn an additional 7,000 yuan in income. Related Q&A: How to apply for a credit card car loan?

Credit card car loan application conditions: Car loans are generally divided into two types, one is a bank loan and the other is a car finance company loan. There are two types of bank loans, one is in cooperation with 4S, and the other is for car buyers to apply for it at the bank themselves. Due to the advantages of bank loans such as low interest rates and relative safety, many car loan buyers hope to choose bank loans, so intermediary guarantee companies emerged. With the guarantee company, it is still feasible for car loan buyers to choose bank loans. Compared with automobile finance company loans, the application procedures are less troublesome, but the loan interest rates are relatively higher. As for the specific application conditions for car loans, the application conditions for bank loans are more troublesome when there is no guarantee from a guarantee company. First of all, you must have good personal credit status, and then you must be a Chinese citizen who is over 18 years old and has full civil capacity. You must have good character