What does interest-free car purchase mean?

[LeTheo]

Interest-free car purchase refers to a loan without interest, where only the principal needs to be repaid. Auto loan refers to the loan issued by the lender to the borrower who applies to purchase a car. Auto consumer loan is a new type of loan where banks provide RMB guaranteed loans to car buyers who purchase vehicles from their authorized dealers. Things to note about interest-free car loans: 1. Be sure to apply for an interest-free loan from a formal lending institution to avoid additional fees charged by unregulated institutions; 2. Interest-free usually only means no interest, but handling fees may still apply; 3. Pay attention to whether the interest-free car purchase is for a brand-new car; 4. Carefully review the car purchase costs on the loan contract to confirm if it is truly interest-free.