Car purchase installment

 


Installment payment for the purchase of the car means that the user is divided into several installments, and the amount is paid in installments every month. Payment in installments is a hot spot in the current auto market, and in the present stagnant market environment, many merchants consider installment payment as an effective way to gain market share.

Installment feature

In the installment car sales activities launched by dealers some time ago, the balance should generally be paid within two years. Some merchants have extended the repayment period to 40 months, and the monthly payment has been significantly reduced. The monthly payment is only a few hundred yuan, which is more attractive to consumers. At the same time, the down payment is also reduced appropriately.The Changan car of Ordnance Industry Automobile Trade Co., Ltd. To pay only $3,000 down payment. You can drive home with average money. Color TV range.

Enthusiasm at work is very high

In the current market environment for car enthusiasts, many dealers consider premium payments an effective way to grab market share.


Example description

In 2006, she returned to Nanjing from studying in South Korea. 26-year-old Zhou Jing returned to her university to teach. She was sometimes dragged to learn to drive by a classmate. A few months later, Zhou Jing, who had just learned to drive, became addicted to driving, but she hardly worked. There wasn't a lot of money to "consume" cars in 2009. “I am one of the first car owners to enjoy car credit. I bought a more economical Alto car that could enjoy credit. Those who were able to buy a car in installments at the time always enjoyed a surprise People around me. Ordinary. At that time, it was really unusual. He not only checked the financial situation of the car buyer, but also tested the patience of the person concerned. I waited more than half a month for the car credit. Zhou Jing was recalled in 2006. At that time, auto credit was still very strict, and dealers were not as "enthusiastic" as they used to, so they had to follow the step-by-step procedures to do it slowly. “At that time, buying a car loan required nearly six certificates such as ID card, family record, income certificate, real estate certificate, housing certificate. It must go through dealers, banks, insurance companies, multiple departments, and business can be done within A few hours abroad.It will take at least a few days or even more in China.But after 3 years, Zhou Jing and her boyfriend, who are planning to get married and have a slight career improvement, plan to change into a new car to celebrate their marriage, but they have already finished buying a house and wine for the wedding Thanks to their fortune, Chu Jing again thought about buying a car in installments, and after discussing the feasibility with her boyfriend, he decided to buy a car.” The two of them were just as excited as crazy men. First, check the information online every day to check out the bank's co-branding. Our family was originally not solid, so we can only look at about 100,000. The first payment is 40,000, and the rest is paid in installments. It gets paid off in two years, and it's about $2,500 per month. Within our group, so we go. Look at the car. "Newly married Zhou Jing did not hide her inner happiness in front of reporters. After checking the information, Zhou Jing and her boyfriend started to go in and out of various 4S stores. Beijing Hyundai, Dongfeng Peugeot, Dongfeng Citroen, Guangzhou Honda, FAW-VW, Changan Suzuki, Shanghai Volkswagen Volkswagen Skoda, and even high-end brand Volvo. Many models have 12 and 18 zero handling charges and zero-interest activities.” We work on two Jinrui and Citroen C2 cars. They swing between 1.6 liters. Because they have preferential fees, they can save thousands of dollars. Finally, given the status of the monthly payment, my husband decided to buy a Citroen C2 1.6L with 18 stage without handling fee. Zhou Jing's experience buying a car with two loans gave her a good idea of ​​the benefits of several ways to buy a car in installments and the advantages and disadvantages of each.


Advantages and disadvantages

The interest rates on the implementation of auto loans from the bank are high but the repayment pressure is relatively low. A Financial Weekly reporter has learned that many banks offer car loans. However, due to the higher risk of auto loans, banks generally apply interest rates to loans or raise interest rates. Employees of the Shenzhen Development Bank, which is in charge of the auto loan business, told reporters that citizens can apply for auto loans as long as they buy cars or family cars. However, the lender must be a civil servant, college teacher or Fortune 500 official. In general, you can borrow up to 70%, up to $1.5 million. The maximum term is 5 years. “Since the auto loan risk is relatively high, only a new car is required as a mortgage, and the car’s value is constantly decreasing, we can only apply the benchmark interest rate or increase the interest rate appropriately.” The Auto Loan Business Division of the Development Bank said about the financial management, and the weekly reporter explained that according to the loan interest rate announced by the People's Bank of China, the standard interest rate for 1-3 years is 7.56%, and the standard interest rate for 3 years. -5 years 7.74%. The bank will decide how much interest rate to increase according to the different circumstances of the customer. In addition, bank car loans also have some cooperation projects with dealers or manufacturers, and these partners can deduct interest, but these cars are generally high-quality cars. For example, some manufacturers can offer an interest-free loan for a year for a specific model, and the interest on the loan is paid by the car manufacturer or dealer. Car buyers need to make a 50% down payment, and they only need to pay the rest after one year. Assuming the customer's money is tight after one year, as long as you pay another 15% of the car price, you can apply for another year of loan extension, but this year's extension requires interest and monthly payments. Certain car models are interest-free and free of handling fees, but the pressure to repay the loan is high. Some banks have provided interest-free and free car purchase services to customers*. However, those who can enjoy these discounts are generally *old customers who carry* and must be of the specific vehicle model. Buy Car Easy from China Merchants Bank is relatively convenient to use, and approval is quick, so you don't have to wait long. “Zhou Jing believes that the biggest convenience of buying a car *is that it does not need to provide proof of residency and real estate like traditional loans. Certificates, income certificates, marriage certificates, etc. *There is no need to apply for a mortgage to buy a car in installments, And you don't need to buy car loan insurance or corresponding guarantees from additional guarantee companies.After the car buyer negotiates the price with the car dealer, he can complete the installment request form.Due to the mortgage cancellation, guarantee and other procedures, there is no need to buy different insurances for several years at a time. When buying a car in installments.


Negatives

However, the maximum premium amount will be tied to the overdraft limit of *. For example, for most* installment car purchases, the limit is four times the overdraft limit. However, the installment share is separated from the depreciation share, and after the car is purchased in installments, the depreciation share is not occupied and can continue to be used normally. “Including a minimum down payment of 30%, this is enough to cover various models ranging from $50,000 to over $200,000.” China Merchants Bank customer service staff explained that the market expected that after the "Automobile Industry Adjustment and Revitalization Plan", car loans interest rate will be reduced from more than 10% to 6%. According to China Merchants Bank staff, as long as customers who retained Merchants Bank Chinese * for more than 3 months, have a good payment history, have a credit limit of more than 5,000 yuan, they are likely to participate in * car purchase installment service. If they are new customers *, they can also apply for this feature,” however, for new customers Those applying to open the card, usually civil servants, teachers, doctors, lawyers, accountants, employees of Fortune 500 companies, etc., can be eligible to apply for this benefit. “According to reports, China Merchants Bank and Guangben Quanquan Cars are cooperating and paying in installments, but a one-time fee of 3.5% is required for one year and 7% for the two-year period.

Compared with the traditional bank car loan, * it can be more convenient, but the price paid is to shorten the repayment time and increase the repayment pressure. Compared with traditional loans, * the term of car purchase in installments [1] is only a maximum of two years, while car loans are generally three years, and the maximum can be up to five years, which greatly reduces the monthly pressure on car buyers. Take a $100,000 car as an example, with 30% down payment and 24 installments (two years), each installment will cost approximately $3,000, plus one thousand to two thousand yuan for vehicle maintenance, will cost four to five thousand dollars.

Additionally, auto finance companies are becoming another installment payment method to fill vacancies in auto loans. Car finance companies differ from lending companies and banks, and lenders are approved by car finance companies, in addition to the down payment, there are monthly installments and interests, and there are no other expenses, but the condition of each car of the finance company is different, and the interest rate differs from banks, For example, the interest rate of Volkswagen for a 3-year financing is 6.88%. Compared to preferential interest rates on bank loans, they are much more expensive.


Used car start

Most of the sellers have launched a comprehensive credit amortization service in response to the various needs of consumers, making the cumbersome car loan purchase procedure simple and fast. From vehicle selection, shipping, bank card, insurance, bank signatures to parking place certificate, mobile permit, vehicle inspection and registration, all professional sales staff will do it, you just need to provide the required information.

In general, the down payment is 20% of the selling price of the car, and the term of the loan is not more than three years. Operating procedures such as necessary conditions, required documents, and loan procedures for a lender are essentially equivalent to a new car loan. To apply for a used car loan, you must have Beijing registered permanent residence, ID card, and fixed residence. These are the basic requirements. The second is the age requirement, which is generally a citizen of 20-60 years old, you must have a stable job and a stable income, this ensures the ability to pay off the car principal and interest on time.

For the payment of used car installments, three types of information and certificates are required: identity card, home register, certificate of residence and income or work certificate of the buyer; A certificate of the relationship between the buyer of the loan and his wife; And two recent one-inch photos.

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