How to pay in installments when buying a car
In recent years, with the popularity of car consumption, installment payment has become the preferred method for many people to buy cars. This article will introduce in detail the process, precautions and relevant data for handling car installment payments to help you easily complete your car purchase plan.
1. The process of car installment payment
Applying for car installment payment is usually divided into the following steps:
| steps | Specific content |
|---|---|
| 1. Select car model | Determine your favorite car model and configuration, and understand the total price of the vehicle |
| 2. Credit evaluation | Submit personal information (ID card, income certificate, etc.) for loan qualification review |
| 3. Determine the loan plan | Negotiate loan amount, term, interest rate and other conditions with financial institutions |
| 4. Sign a contract | Sign the car purchase contract and loan contract |
| 5. Pay down payment | Pay the agreed down payment ratio (usually 20%-30%) |
| 6. Pick up the car | Pick up the car after completing insurance and other procedures |
| 7. Make repayments on schedule | Monthly repayment as agreed in the contract |
2. Several methods of installment payment
At present, there are mainly the following car installment payment methods on the market:
| Installment type | Features | Applicable people |
|---|---|---|
| bank loan | Low interest rates and strict approval | Those with good credit and stable income |
| car finance | Fast approval and simple procedures | Those with average credit but strong car buying needs |
| Credit card installment | Interest-free period, limited amount | Those who already have high-limit credit cards |
| finance lease | Low down payment, property rights can be transferred later | Those who are short-term money-strapped |
3. Key factors affecting phased approval
Financial institutions will focus on the following factors when approving car loans:
| Assessment project | Specific requirements | Weight ratio |
|---|---|---|
| Credit history | No overdue records and good credit report | 30% |
| income level | Monthly income must cover at least 2 times the monthly payment | 25% |
| job stability | Currently working for at least 6 months | 20% |
| Liabilities | Existing liabilities do not exceed 50% of income | 15% |
| down payment ratio | Generally not less than 20% | 10% |
4. Things to note when buying a car in installments
1.Compare interest rates carefully: The interest rates of different financial institutions vary greatly, and multiple comparisons are required.
2.Be aware of hidden costs: GPS fees, handling fees, compulsory insurance and other additional fees must be confirmed in advance
3.Early repayment terms: Understand whether there are liquidated damages and the specific calculation method
4.insurance requirements: Most lenders will require you to purchase full insurance and designate a beneficiary.
5.Repayment ability assessment: Ensure monthly payment does not exceed 35% of family income
5. Automobile installment market data in 2023
| Data indicators | numerical value | Year-on-year change |
|---|---|---|
| average car loan interest rates | 4.9%-5.8% | down 0.3% |
| average loan term | 36 months | Extended by 3 months |
| Proportion of car purchases with loans | 42% | up 2% |
| Average down payment ratio | 25% | down 5% |
| Approval pass rate | 78% | Improved by 4% |
Conclusion:
Installment payment makes car consumption more flexible and convenient, but consumers need to rationally evaluate their repayment ability and choose the most suitable financial solution. It is recommended to read the terms carefully before signing a contract and consult professionals if necessary. With reasonable financial planning, you can easily realize your car dream and enjoy the convenience of car ownership.
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