How Many Cars Can One Person Finance?
1 Answers
In reality, auto loans typically allow for the purchase of one to two vehicles. However, in principle, as long as the borrower has sufficient repayment capacity and meets the loan conditions, there is no limit to the number of cars that can be purchased. That said, taking out a loan increases an individual's debt-to-income ratio. The higher this ratio, the lower the approval rate for subsequent loans. Conditions for Auto Loans: Age between 18 and 60 years. Ability to repay the principal and interest, along with a stable income source. The monthly loan payment must not exceed 60% of the household's disposable income. A third-party individual must provide a guarantee for the repayment of the loan principal and interest. The loan term must include a one-time purchase of "Motor Vehicle Consumer Loan Guarantee Insurance" and continuous coverage of "Motor Vehicle Insurance" from a bank-approved insurance provider. Documents Required for Auto Loans: Loan application form. Original and photocopy of ID card, household registration, or other valid residency documents. Proof of occupation and income, including but not limited to income certificates from employers, bank statements, credit card statements, tax payment proofs, etc. Purchase agreement, contract, or letter of intent signed with the dealer. Documents required for guarantees, including lists of collateral (pledges) and proof of consent from the owner (including co-owners) for collateral or pledge; proof of ownership or usage rights of the collateral issued by the relevant authority, written appraisal (based on the vehicle invoice price and market price), and insurance agreement documents. For pledges, the pledged item or proof of rights must be provided. For guarantors, a guarantee contract agreeing to joint liability and relevant creditworthiness materials, or documents proving eligibility for unsecured loans. Proof of the down payment made. Additional documents as required by the branch.
