Buying a car is supposed to be an exciting thing, but many people accidentally fall into a trap when taking out a loan.
Because the sales mentioned that "the rate is very low", I was moved, and I felt that I had picked up a big bargain, and then I hurriedly paid...
But when I actually started to repay the loan, I realized that it was not the same thing at all.
Today, I will popularize this concept with you, and teach you how to take out a loan, so that you must not be fooled by 4S stores in the future!
01 What is the rate?
Let's start with the rate, so the term is very "niche", so many people mistakenly think that it is the same as "interest rate".
But in fact, the difference between the two is huge!
It is usually calculated on the principal amount of the initial loan and does not decrease as you repay the principal.
For example, if you borrow 100,000 yuan and the rate is 6%, then no matter how much principal you repay, the monthly fee is calculated according to this 100,000 yuan.
This means that even if you repay a portion of your principal each month, the fees incurred by the rate will remain the same.
This calculation method seems simple, but in fact, it hides a big "pit".
This results in a total amount you end up paying that is much higher than you would normally expect.
Because it is relatively hidden, this rate is commonly found in some credit card installments and Internet consumer financial products.
Of course, the rate of the car loan is still different from the rate we talked about above.
Because they just package the interest rate into a rate, there is no situation where the prepayment interest does not decrease, but the "routine" should not be underestimated.
02 What is the difference between car loan rates and interest rates?
Why?
To put it simply, because of the difference in calculation methods, the difference between the two is extremely huge.
For example, if you find a bank loan of 100,000 yuan and repay it in 12 installments:
Don't think I'm talking nonsense, it's clear to everyone if you do the math yourself!
In this regard, the reporter of Huashang Daily also visited a number of automobile 4S stores in Xi'an as a car buyer...
Finally, it was found that many salespeople rarely mentioned the loan interest rate when introducing the vehicle loan installment plan, or confused the rate with the interest rate, only telling the total interest of the loan or emphasizing the low interest rate.
And behind this trap, the victims are also extremely large.
For example, in January 2023, Mr. Gao, a citizen of Xi'an, bought a BMW X5 for his company in a 4S store, with a naked car price of 597,000 yuan.
At that time, the sales consultant had recommended him to use the installment loan business, and said that the "rate" of the loan was about 4%, which was lower than the mortgage interest rate.
But after the loan came down, I found that the car loan interest rate written in the bank contract was 8%, which was double the 4% said by the previous 4S store.
Coincidentally, many brands such as Volvo/Volkswagen/Audi have a similar situation, and even use it
03 How to avoid these pitfalls?
Since these "pits" are so hidden, how can we avoid them? The following points need to be paid attention to when buying a car loan:
No matter what kind of alternative words are used for sales, be sure to ask "what is the interest rate of 60 periods"?
If he doesn't want to answer positively, you can also calculate the rate at 1.89 times, which is basically your real interest rate.
Some 4S stores may have low-interest or even interest-free loans, but it is important to guard against other hidden fees, such as processing fees, processing fees, insurance premiums, etc.
These expenses may be mentioned in an inconspicuous place or overlooked during the contracting process, ultimately resulting in actual costs that are much higher than expected.
To put it bluntly, you don't need to accept the loan plan of the 4S store at all, you can do it yourself.
For example, if an individual buys a car, he can directly apply for a plan with an annualized rate of 1.9%-2.5%, which is only 3.5% for five years!
Compared with the 2.99% rate of the 4S store (the actual rate is 5.66%), it is much lower.
Because in the absence of other hidden routines, there may also be other surprises.
For example, the promised "interest-free policy" is very good, but the credit scrutiny is strict, and as a result, you are forced to pay higher interest rates.
Or ask for in-store decoration or insurance, the price of these items, far exceeds the market price.
All in all, it's not complicated to take out a loan to buy a car, but only if you understand the "routine" and stay rational.
Don't believe what others say right away - people are separated from their bellies, be cautious and be careful!
To put it bluntly, it is to keep an eye on it, ask a few more "whys", and do more calculations... And then make a decision.
After that, you will find that a lot of things become easy and money is saved.