In a 4S store, what are the differences between loan and credit card installment to buy a car?

When buying a car, there are several differences between choosing to buy a car with a loan or by installment with a credit card;

1. It is convenient and quick to buy a car with a credit card in installments, but the limit is limited.

2. Credit card installment models are limited, while car loan models are many.

3. The threshold for credit card installment application is low and the procedure is simple and convenient.

With the improvement of living standards, many people choose to buy cars in order to improve their quality of life. However, people have limited funds. In order to make better use of funds, which method to choose to buy a car has become a concern for people. . Among them, people can use credit cards or 4S store loans to buy cars. Different methods naturally require different conditions. Let us take a closer look at the difference between loans and credit card installment purchases.

1. It is very convenient to buy a car by installment with a credit card and does not require complicated procedures.

Many people go to the bank to get a loan to buy a car. They need to provide bank statements and proof of employment, and then get approval from the bank before they can get the loan, which is very cumbersome and troublesome. Some people also lend money through loan companies that 4S stores cooperate with. Although it is very easy to lend money through loan companies that 4S stores cooperate with, the interest rates are higher than bank loans and there are many potential risks.

Buying a car in installments with a credit card does not require complicated applications. You only need a credit card that can apply for a car loan. The loan will be approved quickly after application, and the interest rate is similar to that of a bank loan.

2. The car models available for installment purchase with credit card are limited, rather than the wide range of car purchases with loans.

Although it is convenient to buy a car in installments with a credit card, and consumers do not need to pay high interest rates, there are many restrictions on buying a car in installments with a credit card. There are many models that cannot be purchased in installments with a credit card. If you want to use a credit card in installments, you only need to Being able to choose within a limited range, there are a lot of restrictions. But buying a car with a loan is not subject to this restriction, and any model can be purchased with a loan.

3. Credit card installment interest is low and repayment is convenient and quick.

Credit card repayment is very convenient. You only need to pay the money back to the card on time. Moreover, the credit card installment will have a certain interest-free period, as well as various discounts from banks, compared with loans cooperated with 4S stores. , to be more convenient and faster.

Whether to buy a car with a loan or to buy a car with a credit card in installments depends on your personal situation. Relatively speaking, it is more cost-effective to buy a car with a credit card loan. If you have any other opinions on this, please leave a message for discussion. What is the difference between buying a car with a loan and paying in installments?

1. Different definitions

(1) Loan to buy a car: The loan issued by the lender to the borrower who applies to buy a car is actually borrowing money from a financial institution to buy a car. However, financial institutions require car buyers to pay a certain percentage of down payment and provide proof of repayment ability. They must have no bad credit record and meet the requirements of financial institutions to apply for a loan to buy a car.

(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 Have a relatively stable career and relatively stable economic income or have assets that are easily liquidated, so that you can repay the principal and interest of the loan on time.

During the loan application period, the car buyer deposits the down payment for the car purchase lower than the bank's requirements in 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. What is the difference between buying a car with a loan and buying a car by installment?

The main difference between loan cars and installment cars lies in the two natures, one is a secured loan and the other is an equivalent credit loan. Borrowing money to buy a car usually means applying for a loan from a bank or car finance company, which usually requires purchasing the car as collateral. For installment cars, you generally use a credit card to pay for the car in installments, so you generally do not need to use the car as a mortgage, but use your credit card as a guarantee for your personal credit. In addition, buying a car with a loan is usually larger than buying a car with installment payment. After all, buying a car with installment payment cannot exceed the credit card limit, so there will be certain restrictions. But buying a car with a loan is a little trickier than buying a car with installment payments.

：1. Can I buy a car with a credit card?

I can use a credit card to buy a car. You can choose to pay in full or in installments. But relatively speaking, installment payment may be cheaper than the full payment. Many people think that it is easier to pay in full. In fact, the handling fee for full payment is more expensive because it is more complicated.

2. Procedure for credit card installment car purchase

1. Submit the application. After looking forward to purchasing a vehicle, fill out the automobile consumer loan application form and credit status survey form, and submit relevant personal certificates to the lending bank;

2. The bank conducts pre-loan investigation and approval. If the borrower meets the loan conditions, the bank will promptly notify the borrower to fill in various forms;

3. Notify the borrower to sign a loan contract, guarantee contract and mortgage contract, and handle mortgage registration and insurance procedures;

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

5. The borrower will hand over the down payment to the car dealer and apply for withdrawal with the passbook and the car delivery note issued by the bank. Car procedures.

3. Requirements for car loans:

1. The car buyer must be over 18 years old and have full civil capacity.

2. You must have stable income or other assets that are easily liquidated. Of course, assets that are easily liquidated are mainly stocks or some precious metals.

3. During the loan application period, the car buyer should deposit no less than the down payment amount specified by the bank into the savings counter account of the handling bank.

4. Provide bank-approved guarantee. If the car buyer's personal account is not local, a joint liability guarantee should also be provided, and the bank will not accept the mortgage loan purchase set by the car buyer.

5. The car buyer is willing to accept other conditions deemed necessary by the bank.