Tips about Auto Finance

 

 

I. Application Conditions

The following conditions are compulsory for the application for loans with our company:

1) The applicant is aged 18 to 60 with full civil capacity. The applicant must be able to provide a formal identity card to apply for a loan.

2) The applicant is a citizen of the People's Republic of China, or a foreign national or a national from Hong Kong, Macao or Taiwan who has been living in China for more than 12 months.

3) The applicant has a legal and stable source of income.

4) The applicant has sound credit records.

5) The vehicle is purchased for self-use or commercial use. The loan will not be granted if the applicant purchases the vehicle on behalf of others.

 

II. Loan Information

According to the Measurement for the Management of Auto Loans, a self-used vehicle refers to a vehicle purchased by the borrower with an auto loan for non-profitable purposes; a commercial vehicle refers to a vehicle purchased by the borrower with an auto loan for profitable purposes; a second-hand vehicle refers to a vehicle whose ownership is transferred from one to another during the period from the completion of the registration to the satisfaction with national mandatory standards of vehicle scrapping; a new-energy vehicle refers to a vehicle applying a new power system and fully or mainly driven by a new energy power, including plug-in hybrid electric vehicles (including extended range electric vehicles), battery electric vehicles and fuel cell electric vehicles.

1) The down payment of a self-used vehicle shall not be less than 20% of the sale price, and the down payment of a commercial vehicle shall not be less than 30%. The down payment of a second-hand vehicle shall not be less than 30% of the sale price.

2) The down payment of a self-used JAC or JAC Volkswagen new-energy vehicle shall not be less than 15% of the sale price, and that of a commercial JAC or JAC Volkswagen new-energy vehicle shall not be less than 25% of the sale price.

3) The auto loan rate is subject to the loan rate published by the People’s Bank of China. The mode of interest calculation and settlement is negotiated and determined by the borrower and the loaner.

4) The term of an auto loan (including the rollover period) shall not be more than 5 years, and that of a second-hand vehicle shall not be more than 3 years. The term of an auto loan for distributors shall not be more than 1 year.

5) Both the borrower and the loaner shall follow the principles of equality, willingness, honesty and trustworthiness.

 

III. Materials Submitted for Loan

1) Borrower's name, address, valid identification certificate and valid contact information.

2) Proof of the borrower's income and credit status.

3) Vehicle purchase agreement, vehicle model, engine number, frame number, price and purpose of the vehicle purchased.

4) The amount, term, interest rate, repayment method and guarantee of the loan. Purchase of vehicle insurance.

5) Other information needed to prevent loan risks.

 

IV. Risk Warning

Please protect your personal information when purchasing a vehicle. DO NOT trust promotion measures like MLM car purchase, zero down payment car purchase, and zero monthly payment car purchase. We suggest you to apply for loans from a formally-permitted financial institution and select an appropriate vehicle that suits you by assessing your need for a vehicle and your family income. Please make timely payment after the loan is granted, otherwise your credit rating would be adversely affected.