How to repay an installment loan to buy a car?

1. Repayment of principal and interest in equal installments

In the calculation, first calculate the interest generated by the monthly loan balance, and then subtract the interest payable from the equal repayment amount to form the repayment of the month. The principal amount of the payment.

In the early stage of repayment, due to the larger loan balance, interest accounts for a larger proportion of the monthly repayment, and the principal repayment speed is relatively slow. As time goes by, the loan balance gradually decreases. , the proportion of interest gradually decreases, and the proportion of principal gradually increases. This repayment method is more suitable for those who have a fixed year-end bonus or a fixed annual income.

2. Equal principal repayment

Equal principal repayment of car loan refers to the equal principal repayment method chosen by the borrower after the car loan, which is within the repayment period. Divide the total amount of the loan into equal parts, and repay the same amount of principal and the interest generated by the remaining loan in that month every month. In this way, since the monthly repayment of the principal amount is fixed and the interest is getting less and less, the borrower is initially under repayment pressure. Larger, but the monthly payments also get smaller over time.

Equal principal loan calculation formula: monthly repayment amount = (loan principal/number of repayment months) (principal - cumulative amount of principal repaid) × monthly interest rate

This repayment method is a new way of car repayment, which divides the loan into two parts and repays them respectively in the first period and the last period. After the smart balance payment expires, there are three different repayment plans to choose from: Option 1: Return the balance payment in one go when it expires; Option 2: Refinance the balance payment and apply for a 12-month loan extension; Option 3: Replace it with a vehicle. method to repay the balance

4. Worry-free smart repayment

Commonly known as "loan half, pay half"; the repayment at the end of the loan period is 50%, and there are three options at the end of the loan period: Full payment Pay the balance in full; apply for a 12-month extension; use car replacement.

Extended information:

How to calculate car loan interest:

Based on the total initial loan amount, calculated based on the bank's loan interest rate for the same period at the time of signing, during the repayment period If the bank interest rate changes, it will be adjusted with the interest rate and will be fixed every year.

How to calculate the monthly repayment when purchasing a car with a loan? Car dealers generally use equal monthly repayments of principal and interest. The calculation formula is:

Monthly repayment = loan principal × Monthly interest rate Loan principal , but it needs to be determined according to the user's situation, car model and purpose. If the purchased vehicle is used for rental operations, car leasing and other business purposes, the maximum term generally does not exceed 36 terms (i.e. 3 years).