What are the requirements for buying a car on installment?
2 Answers
Vehicle installment requirements stipulate that the borrower must have a formal job with a stable long-term income, no criminal record or bad credit history, and must be married with an age between 22 and 55 years old (for females, the age must not exceed 50). Additionally, they must have full legal capacity. Furthermore, they should possess a permanent household registration in the region and a valid residential identity. Documents required for submission: Loan application. Valid identification documents of the borrower; married clients must also provide their spouse's identification documents and marriage status proof. Proof of the borrower's income or assets. Credit inquiry authorization. Purchase agreement, contract, or letter of intent signed with the dealer. Proof of the down payment made, etc. Notes on form filling: When filling out the installment loan application form, ensure all fields are completed accurately. Verify the information before submitting it to the loan handling bank or auto finance company to avoid delays or rejections due to incorrect or incomplete information on the form.
I just finished financing a car purchase and found the basic requirements quite straightforward: First, your income must be stable—the bank will check your recent pay stubs or tax returns to prove you can repay the loan on time. Second, your credit history should be clean; if you have late payments or high debts, the interest rate may increase or you could even be denied. Third, the down payment ratio—typically 15%-20% for new cars and possibly 30% for used ones. Fourth, you’ll need to provide your ID, proof of residence, and the car’s details. Fifth, your debt-to-income ratio will be assessed—monthly payments shouldn’t exceed 30% of your income, or it’ll be a heavy burden. Before buying, it’s wise to check your credit report for free to correct any errors. Interest rates also vary by brand partnerships, so don’t rush into signing—choose the most cost-effective option.
