Is Interest Required for Car Loans?

[VanRyan]

Interest is indeed required for car loans. Currently, there are three main methods for financing a car purchase, explained as follows: 1. Credit Card Installment Loan Interest: Apart from the advantage of relatively simple approval and procedures, credit card car purchases do not require corresponding property collateral, eliminating the cumbersome processes such as intermediary notarization and additional costs that burden consumers. 2. Bank Loan Interest: In terms of interest rates, traditional bank car loans offer no advantage. For instance, a certain bank's 2-year car loan rate has risen to 7.8%, while the 3-year loan rate is approximately 30% higher than the base rate of 6.65%. Typically, the 3-year car loan rate has increased to 11.28%. 3. Auto Finance Company Loan Interest: A recent survey found that a certain auto finance company's 3-year loan rate is 10.99%, and the 5-year car loan rate is 11.38%, which is higher than the current bank loan rate of 6.65% for 1-3 years (including 3 years).