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Car loan and credit

Updated on March 14, 2016

Interest issues

This is the most critical issues of the car loan and credit. Most banks typically make two interest packages for customers to choose.

A fixed interest rate during the loan, but the money to pay the monthly interest is always calculated on the total number of the original loan balance. For example, you borrow 500 million with interest rate of 9% / year, every month you pay a portion of principal plus interest always calculated on the original 500 million. With such a long-term loan to buy the house, when selected, do not look at the numbers, no bank interest-free loan you should determine the actual interest rate for the duration of loans (including preferential interest rates and after preferences). You can refer to the information from the banks, over the Internet, employees of real estate trading floor, investors or friends, relatives. Also, find out the conditions and incentives accompanying other parameters make it easy to balance the needs and master plans such as borrowing limits (mentioned above) and the duration of the loan besides interest rates BankThis case has the advantage of a fixed rate for the duration of loans and do not fluctuate because the regulation of banks.

However, if market interest rates were not reduced their interest rates, further the following term real interest on calculated on the outstanding balance will be higher, for example, borrowed 500 million per month to pay 10 million principal amount until December 11th only 400 million principal amount, interest amount paid is still 3.75 million, the actual interest rate will be 3.75 * 12/400 = 11.25%, as interest rates rise later. Usually only those with a stable income, monthly always to win a certain amount of money in the form of this loan and credit .

Second fixed initial interest rate, then adjust approximately 3 months / time prescribed by the bank. Currently, the initial interest rate for most banks are usually 12% - 15%, higher than the first form. However, the monthly customer will pay the principal plus interest based on the actual loan balance. Depending on the loan term, each type of automobile and financial viability of customers that the bank can loan and credit repayment to 90% (typically less than 70%), however the advice from people who have used the service installment loan and credit installment loans is only at about 30% - 50% of the value of the car. This is related to the repayment capacity of the buyer as well as limiting the risk of interest rate fluctuations.

Most car loan and credit customers are usually only interested in the amount initially paid and how much is the right amount of monthly installment is calculated according to how much the current interest rate forgetting that just about 3 months / time, budget will change interest rates (usually upward).

Procedure fees and taxes

Most car buyers are unaware of their repayment installment loan and credit how much% of the total value of the vehicle, the customer is required to pay attention to avoid bank credit staff demanding money "lubrication".

Advice given in this case customers should look to reputable dealers, from which agents will recommend the bank and be able to stand out as some of the procedures for customers selling medical masks activated. Procedures for basic car loan papers 2 section is group identity papers and group financial documentation, from which the bank will assess and provide appropriate levels of loans with collateral of customer.

Conclude

Autocar advice from Vietnam to customers intending to buy a car installment is to be extremely cautious and think twice. Installment loans only source of income when financial stability, need to calculate the difference amount, interest repayment, absolutely not sign contracts without any provision clear. Buy installments with no interest rate is also a form of a loan to the consumer should be required to carefully calculate the non financial risk when going to pay interest on the loan and the fee for services purchased installment.

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