Financial Sharing

Don’t buy a car blindly, and don’t exceed your ability to repay the loan

March 31, 2020

If blind loans, will only make the pressure of life more and more, so before buying a car, we must know our own economic situation, that is, the loan amount is better not to exceed our ability to repay the loan. Then in the selection of car loan period, scheme and amount, we should combine our own situation to choose the right one. Under the same circumstances: the bank’s car loan interest rate will fluctuate on the basis of the central bank’s personal loan benchmark interest rate (usually within the range of 0-30%); the annual interest rate of auto financing company loan is about 9-11%; the interest rate of other loan platforms such as small loan and P2P loan will be higher.

When buying a car with a loan, the first thing to do is to prepare enough down payment in advance. However, with the development of the car loan industry, there are also some platforms for buying cars with zero down payment loan. We suggest you be careful!

In general, the down payment proportion of the bank loan is 40% of the naked car price, and the loan time is generally 3 years. However, the down payment of auto finance is generally about 20% – 30%, the loan time can be as long as 5 years, and the loan amount is relatively high.

About the amount of loan for a new car in an auto financing company: take the loan for a new car of 120000 as an example, assuming the down payment is 30%, and the loan time is calculated in five years, we can get the down payment of 50347 yuan + monthly supply of 1595 yuan (60 months) = the total cost is 146047 yuan. Purchase tax: 10256 yuan = 120000 / (1 + 17%) × purchase tax rate (10%); compulsory insurance: 950 yuan (950 yuan / year for six or less household use, 1100 yuan / year for six or more household use); vehicle and ship tax: 420 yuan (1.0-1.6l (included)); license fee: 500 yuan; insurance amount: 4000 yuan; other handling fees totaled 16126 yuan. So, the down payment for the loan to buy 120000 cars is 50347 + 16162 = 66509 yuan (rough calculation is only for reference), which depends on the model you choose, interest rate and loan term.

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