Can I swipe a credit card to buy a car?

Answer:

Yes, but it should be noted that it is not a direct swipe of a credit card to buy a car. It is best to purchase through a car loan, usually through a credit card.

To handle this kind of business, take China Merchants Bank’s e-flash loan 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 general 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. In addition, purchase tax, insurance, registration fees, etc. need to be paid out of pocket.

Based on the price of a bare car of 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, loan fees, etc. 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 out a loan to buy a car based on your income. Don’t let loan repayment put too much pressure on your life, otherwise it will be counterproductive.

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

Compared with buying a car with a credit card, it is more cost-effective to buy a car with a loan. Nowadays, the annual interest rate of car loans is generally around 3% to 5%, while the comprehensive annual interest rate of credit card installment fees is generally around 9%, which results in nearly double the interest expense.

The process of buying a car with a loan is as follows:

1. Order a car. Book a car first and then go through the loan process, and negotiate specific preferential policies with the 4S store.

2. Submit loan procedure information. Usually required: identity certificate of both spouses, driver's license, marriage certificate, real estate certificate, income certificate, bank statement and other information.

3. Waiting for approval. After submitting the loan procedures, the bank/manufacturer finance/third-party finance company will review the qualifications of the loan applicant, which is usually divided into online approval and offline approval. Online approval will usually call the loan applicant; offline approval will generally be Home visits are only conducted when the loan applicant's qualifications are not very good.

4. Pay down payment. After the loan is approved, you need to pay the down payment to the 4S store first, and then the 4S store will issue a down payment receipt, and hand this down payment receipt to the bank/finance company to wait for disbursement.

5. Loan the money and pick up the car. The bank/finance company will lend money to the 4S store or the loan applicant, so that the invoice can be issued normally and insurance can be used to pick up the car.

What you need to pay attention to when buying a car with a loan:

1. When you are ready to pick up the car after completing all the procedures, the car dealer requires the consumer to pay more than the original car payment. You have to pay a certain amount of cash to pick up the car. The dealer will give many reasons, such as the price of the car increased during the period when the full payment was made, or that some procedures were not completed within the stipulated time. Don't fall for their scams.

2. Remind you that before buying a car, you must choose and understand the formal car sales and car financial guarantee companies to handle car mortgage loan business, and conduct on-site inspections to learn about mortgage and sales companies through various channels. credibility and strength.

3. Today, some car dealers take advantage of consumers' lack of legal knowledge and deceive consumers into signing blank contracts. However, after the consumer loan procedure was completed, when the consumer saw the credit contract, he found that the loan amount was different from the previously promised price.

4. At present, some dealers have launched interest-free car loans in order to attract customers. The actual discount may not be as affordable as imagined, because they will charge a certain amount of handling fees while being interest-free. This procedure The fee may be similar to the interest, so you need to carefully check it based on the actual situation when purchasing a car.

5. Since the owner of the vehicle does not belong to the individual consumer before the payment is settled, dealers generally put forward some required car insurance in the car loan contract in order to reduce risks. as a condition of the loan.

Is it better to buy a car through a credit card overdraft or a car loan?

The key is to see how long it takes you to repay it. You have to know that for a loan, the interest sounds like a lot. In fact, if converted into days, the interest is not very high. This is not the case with credit cards. According to calculations, the daily interest is 50,000%, which translates into 20% more interest per year. If it is paid in installments, the interest for one year is higher than that for a car loan. I have calculated it. On the surface, it looks like one year. The interest is similar to that of a car loan, but the interest of a car loan is 7.6% per year. The monthly repayment of a credit card requires an interest of 7.9%, which is obviously much higher.

And the credit card must be repaid every month. 10% of the outstanding amount, otherwise a 5% penalty will be charged.

Generally speaking, if you can pay it off within a month or two, a credit card is definitely worth it, otherwise a car loan is still worth it.

In fact, according to my habit, I will definitely apply for a car loan. The capital market is picking up this year, so I can keep it until the end of the year and pay it all at once, and buy some funds to make some money in the meantime.