What are the requirements for car financing?
2 Answers
Introduction to the requirements for car financing: 1. If it is a guaranteed loan, the guarantor needs to have certain financial strength. 2. The applicant must be at least 18 years old, with the maximum age for males not exceeding 65 and for females not exceeding 60. 3. During the loan period, vehicle insurance must be purchased from an insurance company designated by the bank. 4. A bank account must be opened at the lending bank. 5. Stable income and employment are required, and an income proof may be necessary. 6. The applicant must be a resident with a permanent household registration in the local area and have a fixed residence there. 7. Other conditions stipulated by the bank. Note: If the car is for personal use, the loan can be extended up to 5 years, although the interest rate may be higher. If the car is for commercial use, the maximum loan term is 3 years.
A while ago, I helped a friend with a loan and found that there are several mandatory requirements for car financing. Banks place the most emphasis on stable income flow, requiring at least six months of salary deposit records, with monthly income ideally being around twice the monthly car loan payment. For example, if your monthly payment is 2,000 RMB, your salary should preferably be above 4,000 RMB. You also need to provide your ID card, residence permit or rental contract, with local household registration being a plus. The credit report is crucial—no more than seven or eight overdue payments within two years, and no more than three or four online loans. By the way, the minimum down payment for a new car is 15%, while for used cars it's 30% or more, and loans for some less popular models may be stricter.
