Can I get a bank loan to buy a used car, what is the interest rate?

(NLDO) – At the end of the year, some people want to buy used cars and borrow money from banks but are concerned about interest rates.

Mr. Nguyen Ngoc (residing in Thu Duc City, Ho Chi Minh City) said that he has a budget of about 200 million VND and wants to borrow from the bank to buy a used car worth less than 500 million VND for his family to return to their hometown and enjoy Tet 2025.

"I have researched mid-range Hyundai, Honda, Mitsubishi... cars with prices suitable for my budget, but I don't know if banks offer loans to buy used cars. I am contacting some banks to ask about loan procedures. I wonder if I can get the loan in time to buy a car before Tet?" - Mr. Ngoc wondered.

Speaking to reporters from the Lao Dong Newspaper, some banks said they have their own policies for customers to borrow money to buy cars, including loans to buy used cars. Some other banks only lend money to buy new cars, using the car as collateral.

Used cars awaiting liquidation of a commercial bank

At the International Bank (VIB), a bank representative said there are many car loan packages, applicable to customers buying both used and new cars.

Accordingly, if customers borrow to buy a new car, they will be disbursed up to 85% of the car's value; the maximum loan term is 8 years and the interest rate applies according to each period. If customers borrow to buy a used car, the maximum disbursed amount is 65% of the car's value, the longest loan term is 5 years. The loan interest rate applies according to each period. At this time, VIB is offering a preferential interest rate of about 7%/year when customers borrow to buy a new car.

A representative of Vietnam Prosperity Bank (VPBank) said that the bank's car loan interest rates are very competitive and flexible. Customers can choose from many interest rate packages with fixed interest rates from 5.5%/year. VPBank also coordinates with car manufacturers to offer more preferential policies on interest rate support or grace period so that borrowers can easily access and choose to buy a suitable car.

"If borrowing to buy a used car, VPBank accepts mortgages using the old car the customer buys with a financing level of up to 70%; maximum loan term is 84 months" - this bank representative added.

Meanwhile, the Vietnam Joint Stock Commercial Bank (BVBank) said it is offering many incentives for customers borrowing capital in early 2025. In particular, the interest rate for car loans is about 8.5%/year fixed for the first 6 months; the interest rate is about 9%/year fixed for the first 9 months and if the borrower is fixed for the first 12 months, the interest rate is 9.5%/year. After the preferential period, the loan interest rate will be applied at the base interest rate plus a margin of 3.5%/year. However, BVBank currently only offers loans for new car purchases.

According to banks, customers who take out a car loan will usually repay the loan in installments over a maximum period of up to 96 months and pay according to the agreed schedule until the debt is fully repaid.

Although the loan process is simple, quick and easy to access, customers still need to pay attention to research and choose a car and loan that suits their financial capacity to avoid unwanted risks during the car loan process.

Source: https://nld.com.vn/co-duoc-vay-ngan-hang-de-mua-o-to-cu-lai-suat-bao-nhieu-19625011010170969.htm