Can Individuals Get a Mortgage to Buy a Car?
3 Answers
Individuals can apply for a car loan. The down payment for a vehicle is generally 30% of the total car price, plus insurance, vehicle registration, vehicle purchase tax, and fees required for the bank loan. You need to bring the ID cards of both spouses and the guarantor, household register (main page, household head page, personal page), marriage certificate, residence certificate, proof of income, and a copy of the property ownership certificate. Confirm Purchasing Power: Determine your purchasing power to ensure that buying a car does not affect the overall quality of life for your family. Generally, based on the average income of the family over the past three years, it is advisable to allocate no more than 20% of the family's income over three years, but not exceeding 10% of the family's fixed asset value. Carefully Inspect the Car Condition: For the exterior, check the paint, the front hood, vehicle accessories, the chassis, and the engine compartment. For the interior, ensure the door windows can be raised and lowered freely, all instruments on the dashboard are complete and functional, the steering wheel is stable when shaken, and the seat surfaces are clean and in good condition.
Of course, you can get a car loan. Nowadays, most 4S dealerships offer installment services. As long as you have a stable income and work proof, and your credit record passes the bank's review, you can apply. The down payment can be as low as 10% of the car price, and the loan term can range from 1 to 5 years. I chose financing because I didn't want to deplete my savings, as I still needed money for emergencies. Remember to calculate the total interest carefully, as some low-interest promotions may have hidden fees—read the contract thoroughly. Make sure your monthly payment doesn't exceed 30% of your income, or your daily expenses might become tight. Most importantly, repay on time, as late payments can affect your credit record.
I bought my current car with a mortgage, paid a down payment of 50,000, and the remaining amount is to be repaid over three years. The monthly payment is 2,800, which is even a bit cheaper than my rent. When applying for the loan, they required my salary statements and credit report. The bank approved it quickly since I have a stable job. I'd advise against taking out a loan for too long—my colleague took a five-year loan, and the interest almost matched the down payment. Don’t change your phone number during the repayment period; if the bank can’t reach you, it might count as a late payment. Nowadays, many car manufacturers have their own finance companies, which have simpler procedures than banks, but the interest rates might be slightly higher.
