How to Calculate the Costs of Car Installment Payments?

[DelHenry]

Installment payments consist of a down payment and subsequent repayments. Below are the specifics of car installment purchases: 1. Advantages: Long payment terms and a wide range of options. Dealers are highly enthusiastic, as in the current market environment for car enthusiasts, installment payments are seen by many dealers as an effective means to capture market share. 2. Payment methods: Bank consumer loans, loans from car manufacturers' financial companies, and financing leases, with the market mainly dominated by the 'Kaiyuan Auto' brand chain. 3. Pros and cons analysis: Pros—bank auto loans have higher interest rates but relatively lower repayment pressure, and multiple banks offer auto loans. Cons—the maximum installment amount is linked to the overdraft limit. For example, for most installment car purchases, the maximum amount is four times the overdraft limit. However, the installment limit is separate from the spending limit, meaning after purchasing a car in installments, the spending limit is not occupied and can still be used normally.