Do buying a car with a loan and buying a car with installments mean the same thing?
Buying a car with a loan and buying a car with an installment plan do not mean the same thing. The differences are as follows:
1. Different meanings:
Buying a car with a loan: Car consumer loans are A new loan method in which banks provide RMB-guaranteed loans to car buyers who purchase cars at their authorized dealers.
Buy a car by installment payment: Installment payment is mostly used in some product transactions with long production cycle and high cost. Choosing the credit card installment method is more economical than bank car loans, car finance companies, etc.
2. Application conditions are different
(1) Loan to buy a car: To apply for a car consumer loan, you must purchase a limited range of cars from a special dealer approved by the bank. Car buyers must Having a relatively stable career and relatively stable economic income or owning assets that are easily liquidated will allow you to repay the principal and interest of the loan on schedule.
(2) Installment payment: For the credit card installment payment method, banks will have higher requirements for applicants. Generally, they require an account in this city, stable income, no bad credit record, real estate, and high-quality bank customers. Better. It is easier to apply for installment payment. As long as the bank launches this service, car buyers can completely follow the rules of different banks.
3. Different interest rates
(1) Loan to buy a car: The interest rate of a car consumer loan refers to the amount of the loan issued by the bank to the consumer, that is, the borrower, to purchase a car for personal use. proportion of principal. The higher the interest rate, the greater the repayment amount the consumer will have to pay. The current interest rate for automobile consumer loans is calculated based on the loan interest rate for the same period stipulated by the People's Bank of China.
(2) Installment payment: Although credit card installment payment is interest-free, handling fees are unavoidable. Since each bank calculates handling fees differently, after understanding the credit card handling fees, you should choose the most suitable card for your transaction.
Does installment payment require interest? What is the difference between it and a loan? Be specific!
Hello, installments are mostly used in product transactions with short production cycles (one or two years) and high costs. Loans are usually divided into mortgage loans and credit loans. There are many ways to obtain loans. In addition to common bank loans, there are also local companies. However, loans are also accompanied by risks. Borrowers need to weigh their own financial capabilities before choosing. It is recommended that you choose a formal platform when applying for a loan to better protect your personal interests and information security.
It is recommended that you use Youqianhua. Youqianhua is a credit service brand under Duxiaoman Financial (original name: Baidu Youqianhua, renamed "Youqianhua" in June 2018). The big brand relies on Spectrum rates are low and trustworthy. Youqianhua launches a consumer credit product for individuals called Manyidai. The maximum loan amount is up to 200,000 (click on the official amount), and the daily interest rate is as low as 0.02. It has the characteristics of easy application, low interest rate, fast loan, flexible borrowing and repayment, and interest rate. Transparency and strong security.
Share with you the application conditions for Youqianhua: The application conditions for Youqianhua are mainly divided into two parts: age requirements and document requirements. 1. Age requirement: between 18-55 years old. Special reminder: Youqianhua declines to provide consumer installment loans to college students. If you are a college student, please give up the application. 2. Document requirements: During the application process, you need to provide your second-generation ID card and personal debit card. Note: The application only supports debit cards, and the application card is also your borrowing bank card. My identity information must be the second-generation ID card information. Temporary ID cards, expired ID cards, and first-generation ID cards cannot be used to apply.
This answer is provided by Youqianhua. Please borrow money reasonably according to your needs. For specific product-related information, please refer to the actual page of Youqianhua official APP. I hope this answer is helpful to you. Click below on your mobile phone to measure your balance immediately! The maximum borrowing amount is 200,000.
Is there a difference between buying a car with a loan and buying a car with installment payments?
1. Different definitions
(1) Buying a car with a loan: The lender applies to the person who applies to buy a car. The loan granted by the borrower is actually borrowing money from a financial institution to buy a car. However, the financial institution requires the car buyer to pay a certain percentage of down payment and provide proof of repayment ability. He has no bad credit record and must meet the requirements of the financial institution to apply for a loan. Only the requirements of the car can be met.
(2) Installment payment: It is mostly used in product transactions with long production cycles and high costs. Choosing the credit card installment payment method is more economical than bank car loans, car finance companies, etc. Usually credit card installment payment is free of guarantee and interest-free, and only charges a handling fee. At the same time, when buying a car with a credit card installment payment, there are no mandatory requirements when purchasing new car insurance and renewal. Generally, you only need to purchase the main insurance and theft insurance.
2. Application conditions are different
(1) Loan to buy a car: To apply for a car consumer loan, you must purchase a limited range of cars from a special dealer approved by the bank. Car buyers must Having a relatively stable career and relatively stable economic income or owning assets that are easily liquidated will allow you to repay the principal and interest of the loan on schedule.
During the loan application period, the car buyer deposits a down payment lower than the bank's requirements into the account of the savings counter of the handling bank and provides the bank with a bank-approved guarantee. If the car buyer's personal account is not local, a joint liability guarantee should also be provided. The bank will not accept the mortgage set by the car buyer for the vehicle purchased with a loan.
(2) Installment payment: For the credit card installment payment method, banks will have higher requirements for applicants. Generally, they require an account in this city, stable income, no bad credit record, real estate, and high-quality bank customers. Better. It is easier to apply for installment payment. As long as the bank launches this service, car buyers can completely follow the rules of different banks.
Each bank has different approaches to installment payment. In addition to the products in the credit card installment payment catalog, some banks have specific requirements for purchase location and amount.
3. Different interest rates
(1) Loan to buy a car: The interest rate of a car consumer loan refers to the amount of the loan issued by the bank to the consumer, that is, the borrower, to purchase a car for personal use. proportion of principal. The higher the interest rate, the greater the repayment amount the consumer will have to pay. The current interest rate for automobile consumer loans is calculated based on the loan interest rate for the same period stipulated by the People's Bank of China.
Many auto finance companies have launched interest-free car loans, but they have different regulations on handling fees. Some require handling fees, while others do not charge handling fees.
(2) Installment payment: Although credit card installment payment is interest-free, handling fees are unavoidable. Since each bank calculates handling fees differently, after understanding the credit card handling fees, you should choose the most suitable card for your transaction.