What Should I Know about Getting A Car Loan?

A car loan is a loan issued by a lender to a borrower who applies for a car. It is also called a car mortgage.

car loan

A car loan is one in which a lender applies to purchase a car.

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At the end of the 1990s, some domestic banks started car loan business. After the initial attempt of car credit in the new century, many domestic banks foresee the opportunities for car loan profitability and opened car loan business one after another. In 2002, the auto credit business achieved unprecedented development and ushered in the spring of auto credit.

This development peak lasted for more than two years. During the period, various banks showed their talents and focused on marketing auto loan business. Such as

Chapter I General Provisions

The first is to regulate the management of auto loan business, prevent the risks of auto loan, and promote the healthy development of auto loan business. According to the "People's Bank of China Law", "

1. The vehicle selection range is "wide": cars can also be loaned!

2. Loan percentage is "high": 50% of the highest loanable car price!

3. "Long" loan term: up to 3 years!

1. What is car consumer credit

A: That is, the RMB guaranteed loan issued by the borrower applying for the purchase of a car; the bank and the car seller provide a guaranteed loan to the car buyer for one-time payment of the car, and jointly insurance and notarization agencies provide insurance and notarization for the car buyer. .

2.What is a joint car buyer? What are the responsibilities of a joint car buyer?

Answer: Co-buyer refers to a natural person who has a spouse relationship or immediate family relationship with the car buyer. They are willing to jointly bear the risk liability in car consumer purchase activities of car buyers, jointly recognize the terms of the contract, and jointly pay the arrears. When a car buyer fails to repay the car, he has the irresponsible responsibility for paying the arrears.

3.How to deal with the quality problem of the vehicle during the unpaid period?

Answer: If the vehicle has a quality problem, the user should go to the manufacturer's special maintenance service center for negotiation and processing. During this period, the user shall not use this as an excuse to stop or postpone payment of repayable money and other fees owed in each period.

4.Is it possible to pick up the car on the spot by car purchase

A: Dealers and banks need to have a credit investigation process to purchase cars by installments. Therefore, they generally cannot pick up cars on the spot. In addition, cars are different from other products, and they still need to go through insurance, certification, and car registration procedures, which are more complicated. It usually takes 7 working days to complete the application.

5. What calculation method is used for consumer credit

A: The method of equal monthly repayment of principal and interest is adopted. The calculation formula is: Monthly repayment amount = loan principal × monthly interest rate + loan principal × monthly interest rate / ((1 + monthly interest rate) total repayment period- 1)

6. What is a guaranteed loan and what is the responsibility of the guarantor?

Answer: A guaranteed loan refers to a loan issued by a person in accordance with the guarantee method stipulated in the "Guarantee Law" and a third party undertakes to assume joint and several liabilities when the borrower fails to repay the principal and interest of the loan. The loan guarantee provided by the guarantor for the loan is an irrevocable full joint and several liability guarantee, that is, the principal and interest of the loan specified in the loan contract and the related costs caused by the loan contract. The guarantor must also bear all joint civil liabilities arising from the contract.

I. Purchase Notice

At present, the automobile consumer credit business cannot be widely implemented. Compared with the ordinary car sales business, it is only applicable to a small number of people in China who are reputable but lack the ability to pay for one-time purchases. Therefore, the work of the sponsors (dealers, banks, and insurance departments) needs to be meticulous and thorough. Provide "information for car purchase" for consultants.

The contents of this notice include: business overview, conditions that car buyers should have and the materials they need to provide, descriptions of business operation processes and precautions.

(Use) Used for consultation and publicity.

Notes on car purchase by car consumer credit

The latest auto consumer credit model introduced by ×× bank, ×× enterprise, ×× insurance company is close to the lives of ordinary people. The procedures are simple and fast, and the cost is reasonable. We will solve all the troubles. Please read this << Notice >> carefully before submitting a car purchase application.

(I) Car purchase method:

The customer pays not less than ×% of the car model first, and the remaining amount applies to the bank for a special fund loan of up to × year, and the dealer provides loan guarantee.

(2) Conditions for loan car buyers:

1. Urban household registration and fixed residence in ××××× districts.

2. A natural person between 25 and 60 years of age.

3. Can provide pledges, mortgages or third-party guarantees approved by the lender.

4. Stable occupation, stable income, and ability to pay the principal and interest of the car on time.

5. Be willing to accept other conditions deemed necessary by the lender.

(3) Information to be provided by the loan buyer:

1. My identity card 2. Hukou book 3. Driver's license 4. Housing and living 5. Two recent photos of one inch 6. Income and labor certificate 7. Parking berth certificate

Note: 1. The original materials and three sets of copies are required.

2. The joint car buyer and guarantor should also provide 1, 2, 4, and 6 of the car buyer's information

(IV) Operation process:

Inquiries at various distributors and consulting outlets

Submit the information provided to the dealer for preliminary review

Select a model and sign a << purchase contract >> with a dealer

Deposit the down payment into the designated account and submit it to the bank (Automotive Consumer Loan Application)

Directly repay the principal and interest of the loan to the bank according to the << Loan Contract >>

Dealer handles vehicle entry procedures and delivers the vehicle

Handle insurance, mortgage registration, notarization, etc.

The bank accepts, approves, and signs the <Loan Contract>

(5) Other matters:

1. Vehicle insurance must be handled by a designated insurance company. The types of insurance that must be insured are: car damage insurance, third party liability insurance, capital rush insurance, auto insurance without credit and installment payment, or credit insurance.

2. The cost of notarization shall be borne by both the purchaser and the seller, half of which is for a family.

3. The car buyer still needs to pay the guarantee fee once according to the loan term. The rate is based on the loan amount, 1% for one year, 2% for two years, and 3% for three years.

4. One-stop service is implemented, but all costs of vehicle registration are borne by the purchaser, and the user still needs to pay an agency service fee of X yuan per vehicle. "<Parking Certificate>" needs to be handled by the user.

Car loan introduction

Compared with new cars, the requirements for loans to buy used cars will be more stringent. Some banks have discontinued the car mortgage business in consideration of the risks brought by used car loans, so consumers can only apply for guarantee companies or auto finance companies. In general, the conditions for a loan to buy a used car require that the value of the vehicle be between 80,000 and 800,000, the age of the vehicle should not exceed 7 years, and the down payment of the borrower must be above 50%. The maximum period is three years and so on.

Car loan application information

1. Application for loan;

2. Original ID card, household register or other valid residence permit, and provide a copy of it;

3. Proof of occupation and economic income, including: income certificate issued by the unit, bank deposit certificate, credit card statement, tax payment certificate, etc .;

4.Car purchase agreement, contract or letter of intent for purchase with the seller;

5. Certificates or documents required for guarantee;

6.Relevant proof of payment of the first car purchase payment;

Car loan loan elements

Element one: the percentage of the loan. Generally, a 30% down payment and a 70% loan are used for second-hand car loans. This is valid for all customer types.

Element two: loan term. The car loan at Ping An Bank generally has a term of 1 to 3 years, up to 5 years.

Element three: loan amount. The loan amount ranges from 40,000 to 5 million, and can meet the requirements of brand loans.

Element 4: The age of the lender must be more than 18 years old, and the sum of the age of the borrower and the life of the loan must not be more than 70 years old.

Element five: The customer type must be self-employed, standard salary, freelancer, good occupation, etc.

In addition, for used cars with a vehicle age of 5 years and a mileage of 80,000 kilometers, there is no need to evaluate the loan, but a 50% down payment is required, and the equal monthly payment method is used to repay.