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What is the difference between car loan and full payment?

1 Answers

KyleLynn

07/29/25 2:10pm

Loan and full payment for car purchase mainly differ in loan handling fees and loan interest fees. The following are the relevant introductions: 1. Car loan: When purchasing a car with a loan, in addition to the costs associated with full payment, it also includes loan handling fees and loan interest fees. If you take a loan from a bank, there is usually no need to mortgage the vehicle, whereas when opting for auto financing at a 4S store, the car is generally mortgaged. Loans from 4S stores for auto financing projects are because these stores also need funds for operations, such as purchasing inventory. 2. Full payment: When purchasing a car with full payment, the costs include the car's base price, registration fees, insurance fees, and optional accessory fees. Full payment is straightforward with almost no additional costs. However, 4S stores usually do not recommend full payment as it offers them little profit.

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