Is it better to buy a car in full or through financing?
1 Answers
Paying in full is more convenient and does not incur interest, making it a better option. Below are the differences between buying a car in full and through financing: 1. Financing: Apply for a car loan through auto finance companies, banks, or other institutions. With financing, you pay a down payment first and then repay the remaining amount monthly, gaining the right to use the car in advance. (1) Interest and fees: For a car with a total price of 100,000 yuan, the down payment is calculated at 30%. (2) Additional insurance: For financing, the commercial insurance part will be negotiated with the 4S store before purchase, at least including compulsory insurance, vehicle damage, third-party liability, and theft coverage. Discounts may be limited. (3) Renewal deposit: Some 4S stores require a renewal deposit, which will not be refunded if you do not renew the insurance with them the following year. (4) Vehicle certificate pledge: When financing, the 4S store usually holds the vehicle certificate as collateral, returning it only after the loan is fully repaid. 2. Full payment: Buying a car in full involves fewer complications, but with financing, many car dealers may add additional car accessories or decorations.