What are the requirements for buying a car with a down payment?
1 Answers
Since 2015, the People's Bank of China has stipulated that the down payment ratio for personal loans and auto loans shall not be lower than 20%. To purchase a car with a down payment, the borrower generally needs to meet the following conditions: have full civil capacity, possess a legal and stable source of income, have good credit, and be able to pay the down payment. The specific conditions are as follows: 1. Have full civil capacity; 2. Have a residence identity in the permanent residence and a fixed and detailed address; 3. Have a legitimate occupation and a stable and reliable source of income, and have the ability to repay the loan principal and interest on schedule; 4. Hold a purchase agreement or contract for a specified brand car signed with a dealer designated by the lender; 5. Provide property mortgage, pledge, or third-party guarantee, where the guarantor is an individual or unit recognized by the lender as having the ability to repay and assumes joint liability; 6. If the car buyer is a couple or a family member, both parties must apply together. If one party cannot attend for some reason, a power of attorney must be filled out and signed and sealed; 7. Have car purchase funds not less than the down payment amount deposited in a bank designated by the lender; 8. Meet other loan conditions stipulated by the lending bank.
