Car loan comparison for give you choices1. apply for car loans from banks (including consumer loans/special car loan/credit card installment loans) loans to banks
include direct-customer, namely individual initiative to get loans from banks, which belongs to the individual consumption loans; the other is guest, namely car buyers choose to cooperate with 4S shop the Bank for a loan, typically by a special instalment loan car loan or credit card. These three types of loans have the following common characteristics:
for the crowd: individual credit, job and income stability and security and mortgage borrowers.
interest rates: Bank car loan rates will float on the basis of the Central Bank's benchmark lending rate (usually range between-10% and 30%). Such as bank customers, car loans can be floating 10%; bank lending interest rate rise over the same period in accordance with Central Bank 10%.
Tips: the latest Central Bank benchmark interest rate for 1-year 6%, 1-3, 6.15%, 3-5 6.4%.
credit: for new cars, maximum amount of the loan does not exceed the price of the 80%.
Security: banks ' borrowers ' incomes, assets such as collateral requirements strict, cumbersome security procedures.
repayment method: equal equal principal and interest, and only a few banks have flexible repayment options, such as China Construction Bank and Bank of communications. Rose
popular science popular science knowledge:
equal principal repayment, repayment early repayment pressures, then gradually reduced as the principal, repayment pressure less equal principal total interest costs more money than matching principal and interest. A case study of a loan of 100,000, the loan period of 5 years, interest rate of 6.4%, two equal principal repayment way than equal interest, 850 Yuan.
loan term: up to 5 years, credit card payments up to a maximum of 2 years
advantage of the advantages and disadvantages of the Bank to apply for a car loan: Bank loan car not required, supports a variety of models and a variety of branded loans; Bank lending rates lower than those of other applicants complete materials, bank loans in time 10-90 days.
disadvantages: strict to loan application conditions; requires consumers to pay a car down payment higher, at between 20%-40%.
Planning Summary: through Bank loan to buy a car with special car loan interest rates are basically the same; credit card installment purchase purely credit without guarantees, loan procedure is simple, but if the loan amount is above 100,000, General levels of credit card is difficult to reach this limit requires credit card can apply for Platinum level and above.
2. auto finance company
auto finance companies are mostly from car manufacturers and banks set up. Car dealers auto finance company loans to customer service, which generally have the following characteristics:
target audience: less car down payment (only 20% or above); do not meet Bank car loan application conditions; persons in need of repayment more flexible.
interest rate: loan convenience and fast lending, but interest rate high (General in 10% around)
loan lines: general situation Xia can provides car price of 80% loan
mortgage/guarantees: General requirements property, mortgage real or guarantor
repayment way flexible diverse: can meet different car groups, different income features of needs
car financial company common of repayment way and the for crowd:
matching principal and interest: monthly repayment amount same. For buyers of the stable income and expenditure.
equal principal: reduce monthly loan every month, total interest expense less than equal interest. For people who can accept the loan initial monthly amount.
flexible credit: for instance, 50% down, the remaining loan 50% (ratio can be adjusted in the first and last paragraph) and the monthly periodic interest for the period, principal of the final balance. And the maturity of the loan, car buyers can also have three options: lump sum, due to apply for deferred pay (that is, for a second loan) or buy their used cars new cars. This way is suitable for short term funding, you need low monthly payments, people on fixed incomes.
sectional repayments: loan is divided into several sections, each containing several repayment, in every single paragraph, the total payout is different in each phase. For example: car loan of 100,000 divided into 3 sections, to 20,000 in the first year, to 30,000 in the next year, to 50,000 in the third year. This way payments when due may also have three choices (see programme). This mode is suitable for people on fixed incomes.
apply to the auto finance company loans
the advantages and disadvantages advantages: loan low threshold, flexible repayment mode.
weakness: auto finance companies are mostly limited to a single car brand; high lending rates.
Tips: loan guarantee choice: can provide mortgage, pledge, or company to provide credit guarantees insurance or guaranteed by a dealer, guarantees provided.
3. Other channels:
through bank loans and of car loans, auto finance company in two main ways. Using other way loan, General is in encountered following three species situation:
(1) small brand car no car financial company
(2) personal funding letter up not to bank or car financial company application conditions
(3) car people no enough first payment
other way loan of channel and excellent disadvantage
loan channel: small loan company, guarantees company, pawn line, P2P borrowing,.
advantages: loan procedure is simple, lending speed.
weakness: these methods channel fees, loan interest rate higher than that of the other two main ways.
4. buyer beware of minefield:
to watch out for conditions of insurance, some dealers to send a guise of auto insurance, but forcing buyers to purchase the specified car insurance and auto insurance is often more expensive than buying. Send insurance is not necessarily a good thing.
zero interest rates, many dealers launched 1 year car loan interest-free, but consumers will have to pay car loan fees, this is in fact the bank interest charges, just change the name.
credit card installments, may lead to some problems: for example, to delay repayment penalty interest to affect personal credit; auto loan is completed, idle will produce an annual fee credit card.
not to overlook price concessions, many automotive manufacturers recommend interest-free auto loans to buyers, but buyers should be careful, enjoy preferential car loans interest free cannot get car prices, only at factory price to buy. Enjoy interest-free amount may be less than the price concessions.
liquidated damages, for people who have early repayment plan, paying special attention to loans have prepayment penalty and liquidated damages clauses.
when car buyers when looking for a guarantee company does a car loan, you may experience more charging items, charges or services are not in place. Buyers need more attention to the costs associated with fees, more contrast, look closely at the terms of the loan contract.