Can I buy a car with a credit card? Is it cost-effective to buy a car with a credit card?

Can I buy a car with a credit card?

With the gradual popularization of credit cards in people’s lives, many people’s consumption patterns have also changed. Any consumer goods within the limit can be converted into installment mode, and cars, a relatively special consumer product, After various banks have gone through a period of exploration, they have successively adopted policies that are more suitable for user needs. So, can I use a credit card to buy a car? This is a question that many people who want to buy a car are concerned about. So can I buy a car with a credit card? The answer is yes. The following is a detailed introduction on the Financial Management Network to buy a car by installment using a credit card.

Applicable Scope of Credit Cards for Car Purchases

Due to the limited credit limit of general credit cards, card-issuing banks generally require cardholders to provide proof of financial resources. Financial proofs recognized by banks include real estate certificates or commercial housing sales. (Pre-sale) contract and house purchase invoice. 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.

Obviously, there will be more and more banks nationwide providing credit card installment car purchase business in line with customer needs. There are China Construction Bank Dragon Card installment car purchase business, Bank of China "Car 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.

However, each bank has its own threshold: China Merchants Bank requires a down payment of 30% of the remaining car payment before installment, while ICBC said it can pay in full. Some banks offer zero handling fees for some models. In addition, the installment rates for different car types and periods are different, and some banks only offer installment for designated car models.

Credit card installment car purchase

Credit card installment car purchase is a credit card installment business of banking institutions. The credit limit that cardholders can apply for is 20,000-200,000; there are three types of installments: 12 months, 24 months, and 36 months; there is no expected annual interest rate of the loan for credit installment car purchases, and the bank only charges a handling fee. Different installments The handling fees vary.

Credit card car purchase process

(1) Apply. After you have selected the car you want to buy, you need to go to the bank to fill out a car loan application form, a credit survey form, and provide proof of your personal income;

(II )The bank conducts pre-loan investigation and approval. If you meet the bank loan conditions, the bank will notify you to fill in some forms according to the contact information you provided;

(3) Notify the borrower to sign a loan contract, guarantee contract, mortgage contract, and handle mortgage registration and Insurance and other procedures.

(4) The bank issues a loan (directly transferred from the bank to the car dealer's account).

(5) The borrower pays the down payment to the car dealer and goes through the procedures to pick up the car based on the bank's car pick-up note and other certificates.

Financial Management Network reminds: The down payment for car purchase cannot be paid with credit card; the handling fee for car purchase with CCB credit card needs to be paid in one lump sum when the first installment is repaid; if you want to repay the installment in advance, the handling fee is non-refundable; credit card installment payment The vehicle purchased with payment must be insured against total motor vehicle theft and vehicle loss insurance, and the insurance period is consistent with the installment period.

Is it cost-effective to buy a car with a credit card?

Is it cost-effective to buy a car with a credit card? How about using a credit card loan to buy a car? In today's era, the development of technology has made life so convenient, and major banks have also acted as one of the main places to provide convenience to users.

Compared with other car loan methods, using a credit card to buy a car has its own advantages. There are two payment modes for buying a car with a credit card: one is to pay the full amount with a credit card, and then apply to the bank Bill installments. The premise is: your credit card's available limit is enough to pay for the car. Second, most car dealers support using credit cards to buy cars in installments. The difference is that the banks that designate installment cooperation are different, so before buying, you must remember to ask the merchant whether the bank credit card you hold can buy cars in installments. .

The credit card installment car purchase method has a more convenient application process, a lower threshold, and the cheapest handling fees. However, the choice of car loan method still depends on your own situation.

For example, if you are interested in a vehicle with suitable performance and style, and the price is 100,000 yuan, then you can apply for a credit card installment payment with a down payment of 30%. After paying the car payment, you will need to pay interest of approximately RMB 8,400 within three years on a loan of RMB 70,000.

However, if you save the credit card installment fund of 70,000 yuan and deposit it in the bank or use it for investment, then under the current expected annual interest rate level, even if it is calculated as a three-year time deposit , there will also be interest of approximately 8,900 yuan upon maturity. The only difference between the two is that credit card installment requires interest to be paid upfront and repaid monthly. Therefore, if you calculate carefully, purchasing a car through credit card installment is not as uneconomical as you think.

Can I use a credit card to buy a car?

I can use a credit card to buy a car. There are currently two ways to use a credit card to buy a car:

1. Use a credit card to pay for installments To buy a car, this method of application is very convenient and the threshold is low. You can apply at a car loan dealer;

2. Pay the full amount with a credit card. After payment, you can apply to the bank according to your financial situation. Installment repayment.

In addition, full payment requires your credit card limit to be higher than or equal to the car price.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card.

On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

A credit card is generally a special carrier plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. The name of the card issuer, validity period, number, cardholder name, etc. are printed on the front, and there is a chip on the back. Magnetic strip, signature strip. Cardholders can use their credit cards to shop and spend money with special entities and deposit and withdraw cash from banks.

Can I use a credit card to buy a car?

Answer:

Yes, but it should be noted that you do not directly swipe your credit card to purchase a car. It is best to purchase through a car loan, usually through a credit card.

To handle this kind of business, take the e-flash loan of China Merchants Bank as an example. You need to promise that the funds obtained will only be used for consumption (including but not limited to decoration, home appliances, weddings, car purchases, etc.) and may not be used for Non-consumption areas and investment areas. These car purchases can be refinanced relatively quickly. Just consider the repayment time and amount to ensure that they are in line with the actual situation.

Whether you use a credit card to buy a car depends on your financial situation. If you have the money to buy a car or pay a down payment, you can use your credit card first, and your money will be charged an extra month of interest.

If you don’t have the money to buy a car and want to pay with a credit card and then repay the credit card in installments, this is not cost-effective.

Nowadays, most car dealers can apply for two-year interest-free loans, and the loan can be up to 70%. Why do you have to use a credit card to pay interest in installments?

If you use a credit card to pay the down payment for a car and then take out a loan to buy the car, because you don’t even have a down payment, you still need to use a credit card to pay the down payment for the car.

Buy the car first It can be paid with a credit card, no doubt about that.

Secondly, regarding the minimum down payment ratio, generally 30% down payment can be achieved, and some can achieve 20%.

If you want to buy a car with a loan, it is recommended to choose some car brands with loan discounts, such as Skoda’s 2-year 0 interest rate. That way you can save a lot on interest. Because a normal loan has an interest rate of at least 10,000 to 20,000 yuan.

But another thing you need to know is that the down payment ratio is only a ratio of the naked car price. Additional purchase tax, insurance, registration fees, etc. all need to be paid out of pocket.

Based on the price of a bare car priced at 100,000, if the down payment ratio is 30%, then the out-of-pocket cost for the naked car is 30,000, and the purchase tax, insurance, and loan fees are almost 20,000. , then your down payment will be 50,000. You need to know this to avoid running out of budget.

Finally, you must take a loan to buy a car based on your income. Don’t let loan repayment put too much pressure on your life, as this will be counterproductive.

Generally 4S stores allow credit cards worth tens of thousands to be swiped.

General 4S stores allow credit cards worth 100,000 yuan to be swiped.

Regular 4S stores or car dealerships and POS machines are special and are not limited by the debit card limit. They can be used normally, but a handling fee may be charged. Generally, credit cards with a limit of 100,000 can be used. .

It should be noted that there is no cap on the 0.6%. If the card is swiped for 100,000 yuan, the handling fee is 600 yuan. If the card is swiped for 300,000 yuan, the handling fee is 1,800 yuan.

Credit card rules for purchasing cars at Mercedes-Benz 4S stores

1. For designated models in 4S stores, you can enjoy the "interest-free and handling fee-free" credit card purchase:

Credit card interest-free and free of charge For handling fees, the bank is only responsible for credit and lending, and there is no loss of funds. The main reason here is that the 4S store mainly provides interest discounts. The loan interest that should have been paid by the cardholder is exempted and exempted, and the 4S store directly returns it to the bank, but this The interest rate is the discount rate negotiated between the 4S store and the bank, and is not the public loan interest rate we see in the market;

At the same time, the 4S store will not engage in loss-making transactions. Although it promises 0 interest rates and 0 handling fees for installment loans, However, restrictions are generally added to the car purchase price. For example, if you purchase a car in full, you can enjoy a discount of 10,000 yuan, but you can only enjoy a discount of 5,000 yuan in installments. Or there may be no discount at all and you can only follow the guide price; or you may be required to purchase car insurance at a 4S store. Earn back loan interest losses through high insurance rebates.

2.4S store designated models, enjoy "zero interest rate" credit card installment car purchase:

It advertises "zero interest rate" for credit card installment, but does not say "free of charge". In fact, this is just a This is a gimmick. Banks play a leading role here. The annualized interest rate after calculating the handling fees for credit card installment loans is more than 15%. The 4S store only acts as a source of customers and provides bank installment loans to customers with insufficient funds. Close the car purchase deal.

Specified models in 3.4S stores can enjoy "interest-free, handling fee discounts" installment car purchase:

Similar to the second article, except that cardholders can enjoy more favorable procedures. The fee rate is also the result of the game between 4S stores and banks.

4.4S store designated models, 30% down payment, zero interest and zero handling fees, credit card installment loan repaid in one year:

This situation mostly occurs on some designated models. Maybe it is not popular or the car purchase price is relatively high. On the one hand, in order to ship the car as soon as possible, the 4S store allows customers to only pay a down payment, which is usually 30% of the car purchase price. The remaining balance can be paid in one lump sum within one year. If it is delayed , you will be charged a penalty interest; in addition, for this kind of superficial discount, although the 4S store does not manipulate the car purchase price, it often requires full insurance in the store, and some of the gifts that come with the car will also be quietly withheld.

5. The cardholder swipes the card normally to purchase a car, and then applies for installment payment:

In this case, it is necessary to establish that the cardholder’s credit card limit is sufficient. Generally, car purchases are bulk purchases. , the limit of several thousand or tens of thousands is simply not enough; in addition, banks are generally more willing to accept this kind of installment, because cardholders cannot enjoy the discount of 0 interest and 0 handling fees and must pay real handling fees.

How to buy a car with a credit card? Is it cost-effective to buy a car in installments with a credit card?

Of course you can use a credit card to buy a car. Now many 4S stores have cooperated with many banks. Even if you don’t have a bank credit card, you just need to select For vehicles, the 4S store will help you apply for a bank credit card on the spot, and then apply for a loan based on the car price and specific discounts. You can pay in installments with a down payment of 30%. It is much cheaper than traditional company loans and car dealer loans, and the process of buying a car in installments with a credit card is Very fast.

There are two card payment modes for buying a car with a credit card: one is to pay in full and then apply for bill installments from the bank. Of course, this also requires your credit card limit to be high enough. Second, most car dealers support the payment of credit cards to buy cars in installments. You do not need to pay interest, and you only need to pay the corresponding installment fees.

Due to the high price of cars, the first method is basically unfeasible, but the second method is more affordable. Compared with car purchases from bank loans and car loans from auto financial institutions, there is no interest in credit card installment car purchases. Of course, the so-called zero expected annualized interest rate will be spent on handling fees, but for lower handling fees, compared with other The two loan methods, with annual expected annual interest rates of more than 10%, are still a better choice. Rong360 has sorted out the car purchase fees for credit card loans from several banks for reference by cardholders. Agricultural Bank of China has the most favorable handling fees, with its 12-, 24-, and 36-month installment handling rates being 5%, 8%, and 11% respectively; ICBC’s 12-, 24-, and 36-month installment handling rates are respectively 5%, 8%, and 11%. The installment handling rates for 12, 24, and 36 installments are 4%, 8%, and 12% respectively; the handling rates for China Merchants Bank’s 12th, 24th, and 36th installments are respectively, and Minsheng Bank’s 12th, 24th, and 36th installments. The installment handling fees are respectively 17% and 17%.

In addition to the low expected annualized interest rate, fast approval is also an advantage of credit card installment car purchases. Some banks' credit card loan car purchases can be approved in as fast as 40 minutes, and in no more than 3 days at the longest. In addition, most credit card banks have credit card points activities. After purchasing a car and swiping the card, you can also exchange the corresponding point gifts at the bank. It can be said that it kills two birds with one stone.

However, credit card loans rarely require full installments to buy a car. Generally, the cardholder is required to pay a certain percentage of down payment, usually 30%. Of course, the credit card car purchase limit is not very high, and it is more suitable for mid- to low-end purchases. car.

That’s it for the introduction of credit card swiping in car dealerships.