The Pitfalls of Used Car Loans

With nothing to do, let’s talk about some pitfalls of second-hand car loans. Have you ever met them?

When buying a second-hand car, have you ever encountered a second-hand car dealer who refused to lower the price in the end? I told you it's okay to eat less. You can pay in installments. Anyway, the interest rate is not high, just over 5%. There is only one month to repay in advance. You thought about it and agreed.

Congratulations. You fell into a pit!

Car dealers do this for only one purpose - to make money -

It is true to make money, but do you know how much money you make and how you make it?

At present, the vast majority of car dealers or (car dealers) on the market are not qualified to do their own installments. At this time, the waiting dealer will call someone over or he knows the trick and give you the details of the installments and the down payment. How much is the loan (why the red letter?) How much is the insurance, mortgage, transfer, home visit? After agreeing, start sharpening the knife.

How to avoid pitfalls? Just hold on a little longer! remember!

How much, how much, how much!

The car dealer or the person who took out the loan will tell you the monthly payment. At this time, you have to do the math, okay?

At present, the banks that carry out second-hand car installment business on the market are basically ICBC, Agricultural Bank of China, Ping An, and Xinhe (our local bank). The interest (also called handling fee) obtained from them is about 3 About 9% per year. Look, it’s been three years! Three years! Three years.

That is, for a loan of 100,000 yuan, the interest received by the bank in three years is 9,000 yuan.

You are calculating your monthly payment * 36 divided by your loan amount. Have you passed 20% easily? The outrageous amount will reach 30%. Where did the extra money go? You, try it carefully!

Then where do they get this 9% extra money? Of course it's you. Do you think I only paid the down payment and haven’t started paying the monthly payments? How did he accept it?

Here comes the point. Remember the red words above?

What is the loan amount?

The car dealer told you 100,000. You thought it was 100,000. But when you signed the loan contract, did you look at the loan amount in the contract? Of course you can't see it either. Why? The contracts signed for you are all blank format contracts, and the amount column is empty. When they go back to sort out the contract, they will calculate the actual loan amount based on the monthly payment agreed with you and fill it in. When lending, the bank will lend according to the contract amount. And this money will not be given to you, but will be given directly to the bank franchisee that the car dealer has found that is qualified to handle the loan. Then they will split the money according to a certain ratio.

This is also the reason why many people see that they still have more than 90,000 or 100,000 when they repay their loans early six months or a year later.

Because you thought it was a loan of 100,000, but in fact your loan was 110,000 or 120,000. Related questions and answers: