Credit card installment business is a business that many cardholders often choose when making large purchases. Nowadays, the business of buying a car in installments with a credit card with zero down payment is becoming more and more popular. But is it true that buying a car with a credit card in installments with zero down payment is true? Is this really good for consumers? What are the advantages? What safety risks exist? The credit card installment car purchase service that has emerged in the past few years is a car financial service jointly carried out by card-issuing banks and automobile companies. Depending on the product, the loan amount can reach up to 200,000 yuan, which can be repaid in 12, 18, 24, etc. installments. , generally there is no interest, and only a handling fee accounting for the installment amount is charged. Some promotional products even waive handling fees.

1. Advantages of credit card installment loan for car purchase From the perspective of down payment of car loan, credit card installment loan for car purchase also has advantages. Bank car consumer loans generally require an average down payment of 30, and auto finance companies generally require an average down payment of 20. Bank credit card installment car down payments have a minimum down payment of zero down payment. "This also greatly attracts many consumers."

2. Disadvantages of credit card installment loans for car purchases. However, behind zero down payment, there are also hidden worries about the expected annualized interest rate of the loan. Since there is no interest for credit card installment payment, but a handling fee is charged, the handling fee for the one-year repayment period is around 20%, and the fee for the two-year repayment period is as high as 10%, and some are even higher. The bare car price of a credit card installment purchase is generally based on the actual market price and does not have to be based on the company's guide price. Some products with zero handling fee are actually equivalent to the car dealer paying the handling fee, so there is basically no discount on the car purchase price. You must buy it at the manufacturer's guide price. Car buyers should carefully weigh it when purchasing. In addition, in order to make profits, some 4S stores process credit card car purchase applications for car buyers, and at the same time require car buyers to purchase some high-quality products or services. These bundled sales may cause consumers to accidentally fall into a consumption trap while thinking they are saving money. among. In daily life, we often encounter examples of failure to repay due to financial constraints. If the loan amount is the same, the monthly payment pressure of credit card installment car purchase will be very obvious, and the risk of the intermediate capital chain breaking is also high. If the repayment is not kept up, you will have to pay penalty interest and late fees, and it will also be stained on your credit record. . Warm reminder: There are risks behind purchasing a car with a credit card with "zero down payment"! When choosing credit card installment payment, you must clearly understand your repayment ability and choose an appropriate method to buy a car.