Car mortgage is a common way to borrow, and many people are faced with the choice of mortgage and pledge when choosing a vehicle mortgage. So, which is better, mortgage or pledge?Let's analyze the advantages and disadvantages of each.
First of all, a mortgage loan is to use the vehicle as collateral for loans, only the license is not mortgaged on the car, compared with the pledge loan, the vehicle mortgage amount is higher, the interest rate is lower, and the repayment period is longer. This is because the collateral has a higher value and stability, which can reduce the loan risk, give the borrower more borrowing amount and a more favorable interest rate.
Secondly, the pledge loan is to use the vehicle as collateral for the loan, that is, the often said car loan, the car can not be driven, but there is no need to mortgage the vehicle registration certificate, compared with the mortgage, the loan amount of the car loan is lower, the interest rate is higher, and the repayment period is shorter. This is because the value of the collateral is volatile and the risk is relatively high, so the borrowing amount and interest rate are relatively low, and the repayment period is short.
When applying for a car loan, we need to decide whether to choose a mortgage or a pledge according to our actual situation. If you need to borrow more, can afford longer repayment terms, and need to use a vehicle, then a mortgage may be more suitable for you. And if you only need a small amount of borrowing and can pay it off in a short period of time, you can leave the vehicle out for a while, then a pledge loan may be more suitable for you.
Follow me and take you to learn more about car loans. Car Mortgage Vehicle Mortgage Car Mortgage Car Mortgage Mortgage License No Mortgage Car Loan Car Loan