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💴 | "I was told that it would be better to switch to a new car in 3 years?" FP estimates how much difference it will make.


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"I was told that it would be better to switch to a new car in 3 years?" FP estimates how much difference it will make.

 
If you write the contents roughly
Obviously, if you pay off the car loan of the car you bought once, you will have less money to pay.
 

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 MONEY PLUS

MONEY PLUS is an economic media that conveys financial and economic information in an easy-to-understand manner for people who are not good at talking about money.


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Auto loan

Auto loanIsCredit salesOne of the products ofAutomobileFor purchase ofLoan(loan).In a narrow senseAuto creditWith names such asCredit company,Car makerAffiliated finance companies (generallyNon-bank) Refers to the installment payment when purchasing a car.

In Japan,bank-Credit union-JA Bank-Labor unionSuch asDeposit financial institution My car loan-MortgageUnder the name of, it is treated as a product that mainly finances the purchase of automobiles for individuals.
Mainly in the 1990sLife insurance companyAs part of expanding the base of personal loans, it has been offering similar products or arranging applications for credit companies with preferential interest rates, but this is shrinking.
In addition, companiesself employedSuch as a business car inBusiness vehicleFor corporate loans by banks, etc. and autolease(Many companies can apply, but in most cases, the individual representative is also examined in addition to the examination of the corporation itself).

Overview

1920 eraTo americanGeneral Motors(GM)ChryslerIntroduced an auto loan, which made it possible for low-income households to buy intermediate and luxury cars.It was the largest automobile company in the world at that timeFord motorThen the founderHenry FordHowever, although he strongly refused to sell loans that caused customers to be in debt and exhausted, GM, which is making a leap forward with the introduction of auto loans, took the No. 1 share from Ford and was forced to introduce Ford later.

Japan

History of auto loans in Japan

After the warPopular carEven if the car is released, the car is anotherDurable consumer goodsIt was a high-priced product compared to.Therefore, in 1960Prince car(Current Nissan Motor) Offers an auto loan.

In the 1980s, sales companies curtailed monthly repayments to promote sales.Installment sales methodWas introduced.This method is a two-party contract (a contract in which the purchaser pays in installments is signed with the sales company).Maru special billIt is a mechanism to use.Maru-sen bills had to be collected by the sales company if they were unsuccessful.On the other hand, if there were no dishonored checks, the installment interest rate would be the profit of the sales company.

Eventually with the expansion of the automobile marketSecondhand carAs the market expands, credit companies will enter the auto loan market through the handling of used car loans.[1].

In addition,Bubble economyLater economic stagnation caused auto loansBad debtAs a result, the burden of debt collection work on the employees of the sales company increased.As a result, automakers have set up a finance company to enter the auto loan market.[1]..Initially, the business of these manufacturer-affiliated finance companies was centered on auto loans, but graduallyCredit cardThe weight of business is increasing[1]..By the way, even in the case of manufacturer-affiliated finance companies, the purpose of loans is different between Japanese companies and foreign companies.Japanese companies aim to earn interest, while foreign companies use auto loans as a means of promotion.[1].

Loan form

Initially, the form of the loan was a two-party transaction using the above-mentioned Maru-only bill, but eventually it changed to a three- or four-party transaction that included a finance company and a credit sales company.

In three- or four-party transactions, there are forms in which a finance company only lends loan funds to a sales company, and a form in which a finance company conducts a credit check of a car purchaser and even collects money.As for the payment method from the finance company to the sales company, there is a method of paying only the amount collected from the purchaser as appropriate or paying the price in a lump sum.[1].

Credit company car credit

Credit companyAnd automobile company finance companiesNon-bankThe auto (automobile) credit provided by is the origin of "credit sales" in the first place.Individual mediation(Shopping credit) ”was changed from consumer goods to automobiles. Similarly, the credit company examines and reimburses the price, and the contractor pays the loan (balance excluding down payment).Repayment in installmentsWill go.

Because the credit company bears the risk of delinquency and bad debt,Sales companyCan get the sales price without risk.Credit companies pay monthly installment fees from customers (interest) Became profitable, and sales companies began to utilize auto loans that allow them to concentrate on sales without worrying about risks.New car (Full model change) At the time of launch, as in Europe and the United States, interest rates may be given preferential treatment for the purpose of expanding sales, or non-banks may be urged to approve even if they are forced to borrow.
It is said that the driving force behind the current major credit companies expanding their nationwide branch network is the rapid spread of auto loans.

However, in 2005Door-to-door salesbyRemodeling Commercial CodeWhen it was highlighted that elderly people who had almost no ability to pay were allowed to make credits, the credit industry began to call for stricter examinations so that they would not make credits that exceeded their ability to pay. In this case, each company imposes certain hurdles (income to required funds, ratio of existing borrowing amount, presence of guarantor, etc.) by internal regulations, and it cannot be used unless it passes this standard (examination).

Depending on the credit company (mainlyCredit cardIn addition to auto credit (company), auto loan (loan for car purchase cost) for credit members.Money Lending Business LawExcluded loans from the total amount regulation) may be provided.

kickback

One of the installment payment fees that can be obtained with an auto loan, in the sense that the credit company's response to expanding sales of the auto loan partially compensates for the installment interest income that the car sales company had previously earned with the Maru-only bill. Kickback (back margin) is a method of returning the installment to the sales company.

Deposit financial institution loan

Auto loans provided by deposit financial institutions such as banks are available at the financial institution's window.Public relationsPerson in chargeInternet banking・ Once the contract is concluded after applying through, etc., and after examination, the loan (generally like a mortgage) is once transferred to the contractor's deposit account.transferEh, the purchase funds (loan + down payment) are transferred from that account to the sales company, a car sales contract is concluded, and after that, it is divided every monthAccount transferWill be repaid at.
Depending on the financial institution that handles your car loan, in addition to the funds for purchasing a car,Driver's licenseAcquisition cost車 検-RepairYou may also be able to get a loan.

(In the case of credit sales, "loans by purpose" are set separately, and in the case of automobile manufacturer finance, "maintenance credits" are set separately.

Unlike auto credit, the sales company is not involved in the application at all (except when the sales company arranges it), so it is necessary to go to the window of the financial institution when applying or contract, or exchange documents by mail or through a liaison officer. In addition, it is necessary to submit an estimate in order to determine the approximate required funds at the time of application, and in order to thoroughly manage risk, it is assumed that a stable person has a certain period of service and income. The disadvantage is that the hurdles for examination are higher than those for non-banks.On the other hand,Long-term prime rateAccording toFloating interest rateBecause the loan is made in Japan, the interest rate is very low compared to non-banks.

Affiliated for use at banks and credit unionsCredit card company・ Credit company ・ Credit guarantee company ・consumer loan,JA Bank,Labor unionThen, of the affiliated credit guarantee associationInstitutional guaranteeIs indispensable, and the examination is first conducted by the guarantee institution, and if it is approved (guarantee underwriting), the examination is conducted by the financial institution.Additional depending on the situationjoint guarantorMay be required.In the unlikely event that the user is overdue, the credit guarantee side will go to the loan executing financial institution based on the contract.SubrogationWill be done.

Brazil

BrazilSo, in addition to sales credit, auto mortgages go through the used car marketconsumer loanAlso plays a role as[2].

In a situation where it is not uncommon for the annual interest rate of unsecured loans to exceed 100%, with tens of percent being rough, the annual interest rate of auto loans is less than 20%.So consumers

  1. Sell ​​your car and get cash
  2. Go to the dealer and get an auto loan to buy a new car

By following these steps, you can earn money at a low annual interest rate.[2].

footnote

[How to use footnotes]
  1. ^ a b c d e Shinya Furue "Current Situation and Issues of Auto Loans" "Agriculture and Forestry Finance" April 2006 Issue
  2. ^ a b "Brazil's Automobile Circumstances" "Nikkei Business Online" Nikkei BP, delivered on February 2008, 2

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