Can Parallel Imported Cars Be Purchased with Installment Loans?
2 Answers
Parallel imported cars can be purchased using installment payment methods. Parallel imported cars, officially known as parallel trade imported vehicles and commonly referred to as parallel trade cars, are vehicles that are purchased by traders from overseas markets and introduced into the Chinese market for sale without authorization from the brand manufacturers. Here is an introduction to the installment payment method: 1. First, the consumer submits an application to the bank, filling out a written application form and providing relevant documents. These may include ID card, household registration, property ownership certificate, marriage certificate, bank statements for the past six months, etc., depending on the requirements of different institutions. 2. After the bank approves the application materials submitted by the borrower, both parties sign a loan agreement and a guarantee contract, and complete relevant notarization and mortgage registration procedures as necessary. Once the loan is approved by the bank, the funds will be transferred directly to the car dealer's account according to the contract terms after all procedures are completed.
Financing for parallel imported cars is actually feasible, though the process is more complex. Banks are generally reluctant to provide loans for vehicles from unofficial channels due to difficulties in valuation and higher risks. It's advisable to approach specialized auto finance companies or lenders partnered with parallel import dealers, as they handle such cases more frequently. Down payments can be as high as 40% or 50%, with interest rates slightly higher than conventional cars, averaging 7-10%. Be prepared with complete documentation like import customs declarations and vehicle certification papers. I went through this process helping a friend purchase such a car—never compromise on legality checks just for lower prices. While achievable, comparing multiple loan options is the safest approach.
