How many of the benefits of car loan?

Just like home loans, car purchase loans have become fashionable. If you do not have enough money to buy cars, buy a car loan to the purchaser will ease the financial pressure on the yen early on a dream car; if it has sufficient funds to buy a car loan will help the purchaser will increase the mobility of capital, to allow more money to give birth to Money.



It is understood that the current main bank loan to buy a car car loan, auto finance company loans, lease financing in three ways, then the consumer to choose what kind of loan would be more cost-effective manner, so that we may wish to Bibi Kan.



Bank car loan of $:% of the low interest rates, complicated procedures, high costs



Bank to provide personal automobile consumption loans is the most traditional model of a car loan, car loan offered by banks can be divided into "straight-off" and "off-between" two, "Inter-off" means that borrowers can First Bank of special car dealers to buy cars, to submit the relevant information on loan applications by banks on behalf of automobile dealers applying for the loan.



After investigation, the bank agreed to examination and approval, the loan signing of the contract, guarantee contracts, and handle notarization and insurance procedures. "Straight-off" means that borrowers would first go to applications for bank loans, the banks agreed to go after the special car dealers. Such loans generally life of three years up no more than 5 years (inclusive). People's Bank of China in accordance with the provisions of the loan interest rate of loan rates over the same period.



Advantage: the bank car loan has the advantage of relatively low interest rates, although the central bank raising interest rates again after the bank car loan interest rates also raise the 1-3-year interest rate from 6.03% to 6.30%, 3-5-year interest rate from 6.12% to 6.48%, compared with vehicle finance company as much as 8 percent more than the interest rate, quite a few low. Some banks in order to attract customers based on integrity quality, reduce the proportion of down payment, loan length of a long release, the loan interest rate to float downward, and other concessions.



Disadvantage: But the whole, complicated application procedures for bank car loan, the purchaser will need to provide supporting information as well as a number of banks authorized to be effective or the right to pledge collateral or compensatory ability of third-party guarantee. If the "inter-off" loans, also holds a special car dealers entered into agreements or contracts to buy cars and so on. If the local household registration is not required guarantor, a very complicated procedure, the loan rate was not high. As the number of banks in the recent case against the car loan, the bank will step up efforts loan, the loan must be more difficult to increase. In addition, some banks need to car loan to pay a variety of other costs, such as security fees, inspection fees, legal fees, mortgage fees, low-interest loans in the car than at the same time have to pay for financial companies is much higher fees. It is understood that the security companies to provide for the family car business loan guarantees, it is necessary to collect 1% of the loan amount to 1.2 percent annual rate of security staff and door-to-door services to the admissibility of the charges. If the purchaser of 150,000 yuan to buy cars, 100,000 loan, the loan period of 3 years, to pay 100,000 (loan amount) × 1% (annual rate of a security) × 3 = 3,000 yuan or 3600 yuan range The amount of security, and 600 yuan or 800 yuan accept the charges. Some dealers have an agreement with the bank, although no guarantee fee, but the condition is rather high as 200,000 yuan to buy the purchaser of the car, there are no other loans to borrowers with a monthly income of 8,000 yuan, 40% down payment required.



+ Car finance companies: high interest rates, simplicity, low cost



October 1, 2004 onwards, auto finance companies have engaged in financial business the right car, and then, General Motors, Ford, Volkswagen, Dongfeng Citroen, Toyota and other foreign auto giants in China one after another out of the car finance company. Automobile loans through finance companies have gradually become the purchaser will choose the way, and for its simplicity, and other advantages to a more rapid pace. It is understood that the automobile finance companies generally down 20% to 30% of the loan period of not more than 5 years. The purchaser intends to purchase selected models can belong to a car dealer's purchase, of course, must have automobile finance business start-up of the car brands and dealers. As long as the degree of good faith, the loan-to-be generally available.
Benefits: car finance companies more professional and humane. For example, GE Capital loans and intelligent public financial flexibility loans, consumers can be part of the loan amount (usually no more than 25%) as a flexible balance due, in the last month of the loan period of one-time payment, without taking into account the amount paid on , Will be able to make such a purchaser for the month was significantly lower than traditional credit for the month. Contract expires, consumers can have a variety of options: a one-time settlement of balance payment due flexibility to obtain full ownership of the vehicle; or balance due to the flexibility to apply for a further period of 12 months of the second loan; or with the assistance of dealers to second-hand New car replacement, the balance due will be deducted from the old cars at a discount. Overall, auto finance firms that provide car loan, the loan advantage of flexibility, simplicity. It is understood that in terms of loans, car finance company loans purchasers pay more attention to personal credit, education, income, and so are the reference standard, and the bank did not like to pledge, the field will not become a household access to credit Obstacles. In addition, the auto finance companies to lend loans fast, usually within a few days can be done.



On the other hand, auto finance companies than bank lending conditions relaxed. If the GMAC-SAIC Automotive Finance Company to apply for car loan, there is no limit accounts or real estate needs, the need to provide proof of residence or a valid residence booklet, any of the recent water / electric / coal / telephone payment documents, marriage certificate or divorce certificate , The designated bank debit cards, the borrower my driver's license, the borrower (spouse or a guarantor) effective identification, the borrower (spouse or a guarantor) of income to prove effective.



Disadvantage: auto finance company car loan is a disadvantage of higher lending rates, the 5-year interest rates have to be close to 9 percent, compared with the bank car loan rates, car finance companies lending rate to be higher than 2%.



Financing - rent. Rent /: low-down on low for a total expenditure of high -



At present, the first lease-purchase, rental Edge side is to buy a car purchase. It is understood that there are a number of specialized leasing companies and dealers as well as joint bank, financing through leasing car. That is, by bank loans, personal use as a lease, loan payment to the property rights of all individuals. At present, the hire purchase of consumer deposits in the form of security guarantee, credit rating, property security, mutual security, and so on. Installment period of up to 10 years.



Advantages: consumer services, hire purchase loans by lending benchmark interest rates, car loan with the bank to be down 20% to 30% compared to rent the consumer can choose to buy zero-down payment, license, insurance, purchase tax, motor vehicles and other decoration The cost of car hire can, for a monthly income of the purchaser in terms of high-pressure significantly reduced, and this form are not limited to the household registration requirements. Once the rent to buy gold for failing to pay can advance the deliberations, the purchaser will not be facing the vehicle to recover the disposal of the risk. In addition, the installment period of up to 10 years, the purchaser will have a month's loan to alleviate the pressure.



Disadvantage: However, in addition to a long period of payment, the advantages of zero-down payment, lease financing and bank loans are not much different from a cost point of view, there is no interest rate cut of 10% discount, compared to bank financing lease The new car loan, the total cost may be even more.