What are the tricks for a two-year interest-free car loan? Should I pay more in the first year of a two-year interest-free car loan?

Generally, when you go to a 4S store to buy a car, the salesperson will recommend you a two-year interest-free car loan and ask you to buy a car with a mortgage. So, is there any trick? In fact, a two-year interest-free car loan will make the salesperson more money, because the insurance for the second year will still be purchased at their store. For details, please see the detailed introduction provided by this website.

What are the tricks for two-year interest-free car loans?

It is said to be interest-free, but in fact it charges a "head interest"

The financial service fee is equivalent to interest, and it is charged at the beginning, so it is equivalent to "head interest";

Take my sister's case as an example. According to the loan of 40,000 yuan, equal principal and interest, 24 installments over two years, and interest of 3,000 yuan, the actual annualized interest rate reached 7.04%. If the repayments in the previous two years were different, the actual annualized interest rate would reach about 7.5%, which is not high.

Financial services companies are all "insiders" and they are all for sales.

Most companies that provide interest-free auto loans are established by the auto companies themselves and are all “insiders”. Therefore, their purpose is the same: they do not make money from auto finance, but they are all for sales. Increasing sales can increase the overall profits of the group, so losing a financial company’s profits is acceptable as long as they do not lose money.

Provide related services after loan

After taking out an interest-free loan, car insurance generally needs to be purchased at this 4S store and it needs to be purchased continuously for several years. Coupled with other value-added services, the profit point of the 4S store has shifted from sales to the after-sales car market.

If the car loan is interest-free for two years, should I pay more in the first year?

In fact, there is definitely interest, it's just stated in a different way. No matter how complicated the half-loan procedure for buying a car is, it will not cost 3,000 in labor costs. And this 3,000 is hard to explain. In fact, to put it bluntly, they are just fooling you over, and after you have taken a fancy to the car and made up your mind, a handling fee will pop up. Often many people think that 3,000 is exchanged for interest, so they just go along with it. This is a marketing trick. If it weren't for this, if they said there was interest at the beginning, maybe you wouldn't spend most of the day with the 4S salesperson. ... It's full of routines, similar to the fact that a price or a discount is always followed by a very small word "start", which first attracts you and then tricks you.

Which is the most cost-effective way to buy a car?

The first type is 4S stores. 4S stores are authorized by car manufacturers, which is what we call specialized stores. They are relatively more formal in all aspects, with better services, and of course, the prices of cars are also more expensive. After all, they have to support hundreds of employees in the store and provide you with services, so they definitely want to make money.

The second type is other than 4S stores, which we call comprehensive auto trade in our industry. Just like a supermarket, 4S stores are specialty stores, and comprehensive auto trade is a grocery store. The vehicle price will be cheaper, but there will be no service. If the vehicle is in the same condition, it is still okay to choose auto trade.

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When buying a car, you should shop around. When buying a car, even if you like a model, you should shop around and visit several stores. This will put some pressure on the 4S store of the car you like. When they see you leave, they will try their best to lower the price. So you should bargain a lot. For example, if the other party says the lowest price is 82,800, you can directly lower it to 80,000 and ask him to find a manager. Don't listen to the salesperson who says it can't be lowered any lower. If you say you want to leave, he will definitely ask his superiors if he can get a lower price.