1. Is the interest rate of a second-hand car loan 6% high?
It is high, because not only is there interest, but also There are GPS fees, service fees, and full insurance every year. This is where the profit from a vehicle loan comes in. So don’t just look at interest rates. The loan itself comes with high fees. It is recommended that you never take out a loan when buying a car, especially a second-hand car.
2. Why are used car loan interest rates high?
The interest rate of second-hand car loans is high, mainly because the seller does not charge legally. The calculation method is:
1. The monthly repayment × the number of periods and then subtract the loan The calculated amount is the interest, and the interest rate for second-hand cars is generally around 6%;
2. You can get a mortgage. For a three-year loan of a second-hand car, the down payment is at least 50%, and the total interest is 20% of the total loan amount. % or above;
3. The calculation formula for second-hand car loan interest is: monthly payment × loan term - loan amount = total interest.
3. Why is the interest rate for buying a second-hand car much higher? Is the interest rate on a used car higher than that on a new car?
As follows:
1. Banks generally believe that the risk of second-hand cars is higher than the risk of new cars.
2. For new car loans (called car finance), generally OEMs (brand manufacturers) will have specialized financial companies to provide services. In order to sell more cars, manufacturers will provide various subsidies to dealers, and then It is given back to consumers to encourage loans; as for second-hand cars, they have basically been sold and no one will give you subsidies.
Introduction
Cheap prices are the biggest selling point of used cars. For the same money as buying a new car, you can buy a higher-grade used car. Therefore, from the perspective of reducing the cost of car purchase, buying second-hand cars is a wiser choice for the general public.
There are also some beginner drivers who have just obtained their driver’s license but their skills are not very good. They might as well buy a second-hand car to practice their skills first. For those car enthusiasts who want to experience a new feeling, second-hand cars are the best choice.
4. Are the handling fees and interest rates for second-hand cars so high?
Of course, no one will handle the loan procedures for you. A handling fee is still required, usually between 2,000-4,000. This is an advantage for used car dealers.
