Buying a Car on Installment: What to Prepare for a Smooth Ride?

The old saying “Buy a car, sell a house” is no longer entirely true, as buying a car on installment has become increasingly popular. This payment method helps many people realize their dream of owning a car sooner without needing to save a large sum of money. However, every game has its own rules. So, what do you need to buy a car on installment? Let’s explore the details with Hanoi Truck!

Car installment purchase

1. Benefits and Risks of Buying a Car on Installment

1.1. Advantages of buying a car on installment:

• Reduced financial pressure: Instead of paying a large sum of money at once, you can divide the payment into smaller installments over a longer period, reducing the financial burden.
• Own a car sooner: You can quickly own your dream car without waiting to save enough money.
• Financial flexibility: Installment payments make it easier to manage your cash flow, allowing you to invest your spare money for profit.

1.2. Disadvantages of buying a car on installment:

• Higher overall cost: Due to interest payments, the total amount you pay for the car will be higher than buying it outright.
• Financial risks: If you don’t manage your finances well, you may face difficulties in paying your debts, or even become unable to pay.
• Complicated procedures: Compared to buying a car outright, the procedures for buying a car on installment are often more complicated, requiring more paperwork and time.

2. What Do You Need to Buy a Car on Installment?

To bring your beloved car home smoothly and safely, you need to carefully prepare the following:

2.1. Financial capacity:

• Income assessment: Clearly determine your monthly income (including both main and supplementary income) to know how much you can afford to pay monthly. Financial experts recommend borrowing a maximum of 50% of your total monthly income to ensure affordability and avoid debt pressure.
• Loan ratio: Depending on your financial capacity, you can choose a suitable loan ratio. Typically, the common loan ratio is from 70% – 80% of the car’s value. The higher the loan ratio, the lower the monthly payment, but it also means you will have to pay more interest.
• Loan term: The longer the loan term, the smaller the monthly payment, but the higher the total interest paid. Choose a loan term that suits your financial capabilities.
• Interest rate: Compare loan interest rates from different banks and credit institutions to choose the loan package with the most preferential interest rate.

2.2. Application documents for car loan:

• Personal identification documents: Valid ID card/Citizen ID/Passport, Household registration book/Temporary residence certificate.
• Income proof documents: Labor contract, Salary statement for the last 3-6 months, Property lease contract,…
• Other documents: Marriage certificate/Single confirmation, Proof of residence (if any),…

Note: Depending on each bank and credit institution, the requirements for loan application documents may vary. You should contact them directly for specific advice.

Car loan application documents

2.3. Choosing a reputable car and dealer:

• Thorough research: Carefully research different car models, brands, prices, features,… to choose the car that suits your needs and financial capabilities.
• Choose a reputable dealer: Choose reputable car dealers with professional, transparent, and dedicated loan support services. You can consult with relatives, friends, or search for information on reputable forums and websites. For example, if you are looking for a truck that suits your transportation business needs, you can refer to the products and services of Hanoi Truck – a trusted address for many customers in Hanoi and neighboring provinces.

Expert advice: “Choosing a reputable dealer is the most important factor when buying a car on installment. A reputable dealer will advise you on the right car model, assist you in completing loan procedures quickly and transparently, and provide professional and dedicated after-sales service.” – Mr. Nguyen Van A, car finance consultant.

3. Frequently Asked Questions When Buying a Car on Installment

Question 1: Where can I buy a car on installment with reputable services?

Answer: Currently, many banks and credit institutions offer car loan services. You can refer to major banks such as Vietcombank, BIDV, VietinBank,… or reputable finance companies such as FE Credit, Home Credit,… You can also choose to borrow directly from car dealers.

Question 2: What collateral is required to buy a car on installment?

Answer: Depending on each bank and credit institution, the collateral can be the car you buy or other assets such as a land use right certificate, savings book,…

Question 3: How long does it take to receive the car after completing the loan procedures?

Answer: The time to receive the car after completing the loan procedures usually ranges from 3-7 working days.

4. Buying a Car on Installment at Hanoi Truck:

• Simple procedures: Hanoi Truck collaborates with many reputable banks and credit institutions, supporting customers in completing loan procedures quickly and easily.
• Preferential interest rates: Support customers with competitive loan interest rates and flexible loan terms.
• Professional service: Professional and dedicated consultant team, ready to support customers 24/7.
• Diverse showroom: Provides a wide range of trucks, dump trucks, specialized vehicles,… from famous brands such as Hyundai, Hino, Isuzu,…

Contact Hanoi Truck now for advice and to own your desired car!

Address: [Hanoi Truck showroom address – example: No. 1, Giai Phong Street, Hai Ba Trung District, Hanoi]

Hotline: [Hanoi Truck hotline number]

Website: https://xetaihanoi.edu.vn/

5. Some Best-Selling Trucks at Hanoi Truck:

• Hyundai HD120S Truck
• Hino XZU720 Truck
• Isuzu QKR77HE4 Truck

Conclusion

Hopefully, the above article has helped you answer the question “What do you need to buy a car on installment?” and provided you with useful information to make an informed decision. We wish you soon bring your beloved car home!