When calculating, the interest generated by the monthly loan balance is calculated first, and the repayment principal of the current month is formed after deducting the interest payable from the equal repayment amount.

At the initial stage of repayment, due to the large loan balance, interest accounts for a large proportion in monthly repayment, and the repayment speed of principal is relatively slow. With the passage of time, the loan balance gradually decreased, the proportion of interest gradually decreased, and the proportion of principal gradually increased. This repayment method is more suitable for people with fixed year-end bonus or fixed annual income.

2. Repayment by average capital

The average capital of car loan refers to the repayment method selected by the borrower in the average capital after the car loan. During the repayment period, the total loan amount is divided into equal parts, and the same amount of principal and interest generated by the remaining loan in the month are repaid every month. Because the monthly repayment amount is fixed and the interest is getting less and less, the lender is under great pressure to repay at first, but with the passage of time, the monthly repayment amount is getting less and less.

Calculation formula of average capital loan: monthly repayment amount = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) × monthly interest rate.

3. Smart repayment

This repayment method is a new way of automobile repayment, that is, the loan is divided into two parts, which are repaid in the first and last installment respectively. There are three different repayment schemes to choose from after the expiration of the wisdom balance payment: scheme 1: return the balance payment in one lump sum when it expires; Option 2: Refinancing the balance and applying for loan extension 12 months; Option 3: Return the balance through vehicle replacement.

4. Worry-free wisdom repayment

Commonly known as "loan half, pay half"; 50% repayment at the end of the loan period. At the end of the loan period, there are three options: paying off the balance in full; Apply for extension 12 months; Used car replacement.

Extended data:

How to calculate the car loan interest;

Based on the initial loan amount, it is calculated according to the bank loan interest rate when signing the contract. If the bank interest rate changes during the repayment period, it will be adjusted with the interest rate and remain unchanged for one year.

How to calculate the monthly loan for car purchase? Automobile dealers generally use the method of equal monthly repayment of principal and interest, and the calculation formula is:

Monthly repayment amount = loan principal× monthly interest rate+loan principal× monthly interest rate.

Term of car loan.

Taking one month as a cycle, the current loan car purchase cycle does not exceed 60 periods (that is, 5 years), but it needs to be determined according to the user's situation, model and purpose. If the purchased vehicle is used for business purposes such as rental operation and car rental, the longest period is generally not more than 36 periods (i.e. 3 years).

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