What does 60% interest-free mean when buying a car?

What does it mean to buy a car interest-free? What impact does this policy have on consumers? Let’s take a look below! First, let’s take a look at the specific content of the interest-free policy. In fact, the interest-free policy is a preferential policy launched by automobile manufacturers for car buyers. Generally speaking, when buying a car, if you choose to borrow a loan to buy a car, you can enjoy the lowest interest rate of 5.5%. In this way, This is undoubtedly very good news for consumers who do not have sufficient funds on hand.

1: What does the interest-free policy for buying a car mean?

Buying a car with an interest-free loan, as the name suggests, sets the interest on the loan to zero, and you only need to pay back the principal to the bank. Yes, however, interest is where the profits of these lending financial institutions lie.

There are two main types of common loan methods on the market. One is the 1-3 year interest-free loan method. This is also the most common mortgage method on the market. Consumers use mortgage loans to buy cars, and You only need to pay the principal part, and all the interest generated during the period will be borne by the dealer. However, the repayment is zero interest only within the interest-free period stipulated by the manufacturer, and the remaining months' payments will have to be paid as normal. The other is the 13-month interest-free loan method, and the maximum time limit for this method is 13 months. Month, repayment within the specified period will be zero interest, and early repayment is not supported.

Two: What does it mean to be interest-free for three years when buying a car?

But the repayment is zero interest only within the interest-free period stipulated by the manufacturer, and the remaining monthly payments will be subject to normal interest payments. expenses incurred. The other is the "three-month interest-free loan method". The maximum time limit of this method is three months. Repayment within the specified period has zero interest, and early repayment is not supported. The procedure for buying a car with a loan requires a valid personal identity document; household registration certificate or long-term residence certificate (residence certificate can provide such as water and electricity bills, Chinese bills, etc.); personal income certificate, if necessary, family income or property certificate must be provided; current unit employment certificate.

Three: What does it mean to be interest-free for two years when buying a car?

Many of them are interest-free for less than two years, but there is a handling fee. There are no special conditions. They just compare every month. Three years will pay off more

Monthly payment * period - loan amount = interest

Ask the car dealer to calculate it for you

Four: What does it mean to be interest-free for one year when buying a car?

“As soon as I heard that I was going to buy the car with full payment, the salesperson who was enthusiastically introducing the car immediately changed his face and ignored me. Buying a car with full payment is so unpopular. "?" When talking about her experience at the auto show in June this year, Ms. Wang from Zhengzhou was still confused.

Ms. Zheng’s experience is not unique. According to media reports, Mr. Zhao from Xinjiang fell in love with a car at the Saibot Circle Showroom in Urumqi on June 3. He negotiated with the salesperson to take delivery of the car in full and paid a deposit on the spot. When Mr. Zhao went to pick up the car, When I was driving, I was told by the 4S store that I needed a mortgage loan to purchase the car, and the deposit was non-refundable.

After visiting a number of car sales stores, Sino-Singapore Jingwei found that, except for a few new energy car companies with directly operated stores, almost no sales staff want consumers to purchase cars in full.

“Buying a car is very strange these days. There is no discount on the full payment, but the mortgage can be 70,000 to 80,000 yuan cheaper.” Some consumers raised such questions on social platforms.

Why is the transaction method of paying off the car payment in one lump sum and clearing both money and goods unpopular with sales staff?

Is it cheaper to buy a car outright than to pay for it in installments?

In early May, Ms. Zhao, who lives in Zhengzhou, Henan, took a fancy to a car at a BMW 4S store in Zhongyuan District. When Ms. Zhao was going to pay at the 4S store the next day, she was told by the salesperson that because it was full payment, So all the discounts negotiated the day before will not count. "I told you about the discounts yesterday, but did I sign on the paper?" the salesperson asked Ms. Zhao. According to Ms. Zhao's recollection, when negotiating the price for the first time, the salesperson said that they could offer an additional 8,000 yuan discount on the all-inclusive price of 370,000 yuan and five free maintenance sessions.

Some car owners told Sino-Singapore Jingwei that the discount for buying a car with full payment is not as great as buying a car with a loan. This is nothing new. When Mr. Dong from Xinyang, Henan Province bought a car at a Dongfeng Honda 4S store, he changed his plan to buy the car in full because of a discount of 1,300 yuan. "The interest for two years is 1,200 yuan. I will give you another 2,500 yuan discount, and you can get it in installments." "The salesperson of the 4S store said to Mr. Dong.

After visiting as a consumer, Sino-Singapore Jingwei found that some 4S stores can provide three-year interest-free and zero handling fee discounts for car loans.

When Xinjingwei inquired about car purchases as a consumer, a salesperson at a Feifan Automobile store in Dongcheng, Beijing, began to strongly recommend car purchases with loans.

“The total price of this MR.Pro is 249,800 yuan, and the insurance is 5,000 yuan. There are two interest-free plans. One is a down payment of 30%, divided into 24 installments, with a down payment of 74,940 yuan and a monthly payment of 7,285 yuan. The second is 50% down payment, divided into 36 installments, with a down payment of 124,900 yuan and a monthly payment of 3,469 yuan,” the salesperson introduced to Zhongxin Jingwei.

The loan plan calculated by the above salesperson

“You don’t have to pay the full price to buy a car. The loan to buy a car is free of interest and handling fees, which is equivalent to lending you more than 100,000 yuan for free. It’s better to deposit it in Alipay. And the process is faster. Submit the application in the morning and it will be approved in the afternoon!” the salesperson told Sino-Singapore Jingwei.

An Audi 4S store in Beijing has also launched a 12-term consumer credit plan with zero interest rates, covering both new and second-hand cars. The plan has been made into stand-up signs and placed in various places in the store.

Publicity signs in Audi stores

This is not the only 4S store that uses the 0-interest financial plan as a promotional slogan. A Dongfeng Passenger Car 4S store in Beijing also produced relevant promotional signs. And placed it on the exterior wall of the store.

The publicity board hanging on the outer wall of the store

Although it advertises zero interest, Zhongxin Jingwei found that there is still a handling fee of about 3,000 yuan to be paid when buying a car in installments.

The salesperson at the above-mentioned Dongfeng Passenger Car Store told Sino-Singapore Jingwei that if you want to buy a car in installments, you need to pay a handling fee of 3,000 yuan.

“As long as you buy a car in installments, you need to pay this amount. This 3,000 yuan is directly given to the bank that provides the loan and has nothing to do with our store.” The salesperson of the Dongfeng Passenger Car Store said.

Many salespeople at 4S stores say that although there is a handling fee, it can relieve customers' financial pressure. "If you use the full payment for financial management, you can earn back the handling fee in two years."

According to the aforementioned Audi store staff, the store also has two bank employees who work in the 4S store for a long time, which not only facilitates providing financial solutions to consumers, but also supervises the bank's assets in the store.

Practitioner: Sales are trapped in the loan penetration rate

Zhang Xiang, an expert at China Broadband Think Tank, believes that the profit difference is the reason why sales staff recommend loans for car purchases. "Loan car purchases will charge handling fees, and sales staff can also get commissions from the loan and other links. This profit difference also leads to different attitudes of sales staff towards full payment and loan customers." Zhang Xiang said.

Some insiders pointed out to Sino-Singapore Jingwei that the profit from negotiating a loan car is two to three times that of a fully paid car.

“Take a car with a down payment of 30% and a total price of 200,000 yuan as an example. The down payment is 60,000 yuan and a loan of 140,000 yuan is required. The handling fee is about 3% of the loan, which is 4,200 yuan. 4S store Loans are also about introducing business to banks and other financial institutions. Banks will usually give 4S stores a rebate of 3% of the loan amount, which is 4,200 yuan. In addition, loan cars generally require car owners to purchase full insurance, while most full-price cars have no mandatory requirements. Therefore, the 4S store can also get a rebate of about 1,000 yuan from insurance," the person said.

Feng Tian (pseudonym), who is engaged in car sales, told Sino-Singapore Jingwei that the sales commission he can get from selling a full-price car is 200 to 300 yuan, while the sales commission for a loan car is at least 100 yuan. Double that of the previous car.

Some media reports claim that loan interest-free is only for car owners. In fact, it is the car manufacturers and sales stores that are subsidizing the interest. Therefore, during the process of installment payment, the 4S store has to charge consumers a financial service fee. However, the relevant car companies stated that the so-called service fee is the behavior of the 4S store and has nothing to do with the car company.

The sales staff of Feifan Auto told Sino-Singapore Jingwei that the reason why the service fee is zero is because the financial service is provided by SAIC Group, to which Feifan Auto belongs, and this move is only to boost sales.

Financial services are provided by SAIC Finance and Industrial and Commercial Bank of China

But not all financial services provided by car companies are free of handling fees.

A salesperson at a BYD 4S store in Beijing told Sino-Singapore Jingwei that financial services provided by BYD are interest-free, but not handling fees. Financial services provided by banks are neither interest-free nor free of handling fees. A handling fee is charged.

Practitioners revealed that loans can extend the front line. One installment loan lasts for 3 or 5 years. Insurance, car repairs, claims and other aspects must be dealt with by 4S stores. In a few years, 4S stores will have no worries. No opportunity to make money. In addition, if consumers apply for installment plans and prepare the full payment, there is no pressure to pay only the down payment. Consumers may switch their target models to models with a higher total price, and the profits of such cars are also higher.

Feng Tianze said that the reason why salesmen work hard to promote car loans is because they don’t want to be deducted. “In fact, recommending customers to buy cars in installments is not to earn commission, but to meet the loan penetration rate assessment standard. The loan penetration rate refers to the proportion of the number of loaned cars in the total sales volume in an assessment cycle. It is closely related to the sales volume, the amount of premium upgrades, and second-hand Car replacement, transaction rate, etc. are all indicators of a sales assessment. If the standards are not met, money will be deducted. Some extreme stores may even ask the seller not to sell a full-priced car," Feng Tian said.

“As long as this sales model does not change, the difference in attitude of sales staff towards full-pay car purchases and loan car purchases will not change.” Zhang Xiang said. (China-Singapore Jingwei)

Five: What is the meaning of interest-free and discounted car purchase?

An interest-free car loan is a loan without interest, and you only need to repay the principal.

A car loan is a loan issued by a lender to a borrower who applies to purchase a car. Car consumption loans are a new loan method that banks issue RMB-guaranteed loans to car buyers who purchase cars at their authorized dealers.

The interest rate of automobile consumer loans refers to the amount of loans issued by banks to consumers, that is, borrowers, for the purchase of personal cars (non-profit family cars or commercial vehicles with 7 seats or less) Ratio to principal. The higher the interest rate, the greater the repayment amount of the consumer

Article 6 of the "Vehicle Purchase Tax Law of the People's Republic of China" The taxable price of taxable vehicles shall be determined in accordance with the following provisions:< /p>

(1) The taxable price of a taxable vehicle purchased by a taxpayer for self-use shall be the entire price actually paid by the taxpayer to the seller, excluding value-added tax;

(2) The taxable price of taxable vehicles imported by taxpayers for their own use is the customs duty paid price plus customs duties and consumption taxes;

(3) The taxable price of taxable vehicles produced by taxpayers for their own use shall be calculated based on The sales price of taxable vehicles of the same type is determined, excluding value-added tax;

(4) The taxable price of taxable vehicles obtained by taxpayers for their own use through gifts, awards, or other means shall be calculated according to the taxable purchase price. The price of the vehicle is determined as stated on the relevant documents, excluding VAT.