What are the methods of installment car purchase?
2 Answers
Methods of installment car purchase are as follows: 1. 4S Store: Nowadays, many 4S stores can assist in handling car loans. By paying a certain service fee, you can easily obtain a loan. The threshold for auto financial loans is very low, requiring only a stable income source and repayment ability. You can choose your preferred car brand and inquire about specific installment loan options at the 4S store, selecting a suitable term based on your needs. 2. Credit Card: If your credit card limit is very high or the car loan amount is not substantial, using a credit card is also a good option. The down payment is generally between 30%-40% of the total car price, which is higher than other loan methods. The installment repayment period is limited, usually not exceeding 5 years, with annual interest rates determined by the car price. 3. Bank Loan: Many banks offer car loan services, and some models in collaboration with manufacturers may have special offers. If you plan to buy a car, it is advisable to check the official websites of major banks. Compared to the above two car loan methods, bank loans have lower interest rates, but the approval process is longer, and the procedures are more cumbersome. If your personal credit is poor or your income is unstable, you may also face rejection.
Buying a car on installment isn't actually difficult. Here's what I've learned from my own experience: First, set a budget—don't just impulsively focus on the car price; calculate how much monthly payment you can afford after deducting living expenses from your income. It's best to prepare a 20%-30% down payment to reduce total interest. Then, compare loan sources: banks usually offer better interest rates, while car dealers sometimes have zero-interest promotions. Last year, I applied at a local bank—the process was simple, requiring just an ID, proof of income, and a credit report. The higher your credit score, the lower the interest rate; if your score is low, shop around—there's always a way. Choosing the loan term is crucial: three or five years each have pros and cons—shorter terms save interest but increase monthly payment pressure. Before signing the contract, read the terms carefully to avoid hidden fees. Final reminder: repay on time, or the penalties can be a nightmare. Choose wisely, and drive with peace of mind.
