What is Auto Finance?

[JaxsonRose]

Auto finance refers to the option available for individuals who lack sufficient funds to purchase a vehicle and require a loan, allowing them to choose different car models and payment methods based on their specific needs. Compared to traditional banks, auto finance represents a new alternative for car purchases. Here are key points to understand about auto finance: Procedures: No collateral is required from the loan applicant. Eligibility is based on having a stable job, residence, consistent income, repayment capacity, and good personal credit. Down Payment: Features low down payment ratios and extended loan terms. The minimum down payment can be as low as 20% of the vehicle price, with a maximum loan term of up to 5 years, and no mortgage fees are charged. Interest rates from auto finance companies are generally higher than those from banks. Examples include SAIC-GMAC Automotive Finance, Volkswagen Finance, Dongfeng Motor Finance, Mercedes-Benz Finance, Ford Finance, and Toyota Finance. Among these, SAIC-GMAC Automotive Finance is the largest auto finance company in China.