How to pay back the loan to buy a car?

The repayment method after the loan to buy a car is as follows:

1. Counter repayment of loan bank: the borrower can bring his/her ID card, loan repayment card and savings card with cash or part of cash. Go to the counter of the branch of the bank business hall where the car loan is handled, apply for repayment to the staff, fill in the repayment application form, and then provide the loan repayment card, savings card or cash as required. With the help of the staff, the repayment can be completed.

2.ATM deposit repayment: Before the repayment date of each car loan, the borrower can take the car loan repayment card, savings card or cash to the nearby ATM machine, transfer the money in the savings card to the car loan repayment card, or deposit the cash in the car loan repayment card and wait for the loan bank to deduct the money.

At present, there are various repayment methods in the auto loan market, such as matching principal and interest and average capital. What's the difference between these two repayment methods? In fact, there is no absolute difference in repayment methods, and you need to choose according to your actual situation.

What is equal principal and interest? It means that the interest generated by the monthly loan balance is calculated first, and the repayment principal of the current month is formed after deducting the interest payable from the equal repayment amount. At the initial stage of repayment, due to the large loan balance, interest accounts for a large proportion in monthly repayment, and the repayment speed of principal is relatively slow. With the passage of time, the loan balance gradually decreased, the proportion of interest gradually decreased, and the proportion of principal gradually increased.

What is average capital? It means to share the principal equally throughout the repayment period, calculate the interest according to the balance of the loan principal and the actual number of days occupied, and repay it with the principal month by month. For the borrower, the rate of repayment of the principal remains unchanged. As time goes by, the loan balance decreases gradually, the interest payable also decreases month by month, and the monthly repayment amount decreases gradually.

So how to choose the repayment method of car loan? If you have a certain amount of savings, the expected income does not change much, and you have no intention to repay in advance, I suggest you choose the repayment method of equal principal and interest, because during the whole repayment period, if you have a certain amount of savings, the expected income does not change much, and you have no intention to repay in advance, I suggest you choose the repayment method of equal principal and interest.

If your income is high and you are ready to repay in advance, I suggest that you choose the repayment method in average capital, because this repayment method reduces the monthly repayment amount, and the principal remains unchanged in the monthly repayment, and the interest decreases month by month, which puts great pressure on early repayment, but the repayment amount decreases gradually in the future and the total interest burden is less.

More common are equal principal and interest and average capital. In fact, there is no absolute difference between good and bad repayment methods, and you need to choose according to your actual situation. What is equal principal and interest? It means that the interest generated by the monthly loan balance is calculated first, and the repayment principal of the current month is formed after deducting the interest payable from the equal repayment amount. At the initial stage of repayment, due to the large loan balance, interest accounts for a large proportion in monthly repayment, and the repayment speed of principal is relatively slow. With the passage of time, the loan balance gradually decreased, the proportion of interest gradually decreased, and the proportion of principal gradually increased. What is average capital? It means to share the principal equally throughout the repayment period, calculate the interest according to the balance of the loan principal and the actual number of days occupied, and repay it with the principal month by month. For the borrower, the rate of repayment of the principal remains unchanged. As time goes by, the loan balance decreases gradually, the interest payable also decreases month by month, and the monthly repayment amount decreases gradually.