How much does it cost to buy a vehicle in installments in Vietnam? What is procedure for buying a vehicle in installments in 2024 in Vietnam?

What is procedure for buying a vehicle in installments in 2024 in Vietnam?

You can refer to the procedure for buying a vehicle in installments by following the following steps:

Step 1: Prepare documents

When buying a motorbike in installments, you need to prepare the following documents:

- Valid ID card/Citizen identification card/Passport.

- Documents proving income: Labor contract, salary slip, bank account statement, savings book,...

- Documents proving assets: Certificate of ownership of house, land, car,...

- Other related documents or as requested by the car seller.

Step 2: Appraise documents

After receiving the application, the bank or financial company will evaluate the application of the installment vehicle buyer.

The bank or financial company will review documents proving the buyer's income and assets to assess the buyer's ability to repay debt. At the same time, the vehicle value will also be appraised to determine the maximum loan amount that the buyer can borrow.

Step 3: Confirm loan and sign loan contract.

If the buyer's application is approved, the bank or financial company will confirm the loan.

The buyer will sign a loan contract with a bank or financial company.

The loan contract will clearly state the terms of the loan amount, interest rate, loan period, late payment fee,...

Step 4: Loan disbursement

After signing the loan contract, the bank or finance company will disburse the loan to the vehicle dealer.

The car dealer will sell the car to the buyer and collect the buyer's deposit.

Step 5: Receive the car

After receiving the disbursement, the vehicle buyer carries out normal vehicle buying procedures. After completing the procedure, the buyer will receive the vehicle from the seller.

How much does it cost to buy a vehicle in installments in Vietnam? What is procedure for buying a vehicle in installments in 2024 in Vietnam? (Image from the Internet)

How much does it cost to buy a vehicle in installments in Vietnam? 

Normally, the down payment amount when buying a vehicle in installments in 2024 depends on many factors, including:

Vehicle value: The more expensive the vehicle, the higher the down payment.

Vehicle type: Motorcycles usually have lower down payments than vehicles.

Installment payment program of banks or financial companies: Each bank or financial company has different regulations on prepayment amounts.

Financial status of the buyer: Buyers with high, stable income can make a larger down payment.

In fact, the down payment amount when buying a car in installments in 2024 ranges from 10% to 80% of the car's value.

What is current interest rate for buying a vehicle in installments in Vietnam?

In Article 13 of Circular 39/2016/TT-NHNN amended by Clause 4, Article 1 of Circular 06/2023/TT-NHNN on loan interest rates as follows:

Loan interest rates

1. A credit institution and its customer shall agree on the interest rate depending on capital demands and supplies on the market, loan demands and creditworthiness of customers, unless otherwise stipulated by the State Bank's regulations on the maximum interest rate set forth in Clause 2 of this Article.

2. If the customer has been rated transparent and healthy in its financial status by the credit institution, the credit institution and the customer shall agree on the interest rate on short-term loan in VND which shall not exceed the maximum lending interest rate decided by SBV’s Governor over periods of time in order to meet certain demands for borrowed fund as follows:

a) Loans taken out to support the agricultural and rural development sector under the Government’s regulations on credit policies for agricultural and rural development;

b) Loans taken out to implement the export business plan in accordance with the Law on Commerce and its instructional documents; 

c) Loans taken out to finance business activities of small and medium-sized enterprises under the Law and the Government’s regulations on support for development of small and medium-sized enterprises;

d) Loans taken out to develop ancillary industries under the Government’s regulations on development of ancillary industries;

dd) Loans taken out to finance business operations of enterprises that apply high technologies included in the List of prioritized high technologies approved by the Prime Minister and other high-tech enterprises under the provisions of the Law on High Technology and its instructional documents.

......

On the other hand, based on Clause 2, Article 2, Circular 39/2016/TT-NHNN, supplemented by Point b, Clause 1, Article 1 of Circular 06/2023/TT-NHNN has the following regulations:

Explanation of words

In this Circular, the following terms are understood as follows:

1. Lending refers to a form of extension of a line of credit under which a credit institution offers or undertakes to offer a customer a sum of money for specific uses within an agreed time period provided that that customer adheres to the principle that both principal and interest arising must be repaid.

2. Lending credit institution refers to a credit institution established and operated under the Law on Credit Institutions, including:

a) Commercial banks;

b) Cooperative banks;

c) Non-bank credit institutions;

d) Microfinance institutions;

dd) People's credit funds;

e) Foreign bank branches.

....

Thus, when buying a vehicle in installments, the buyer will pay an amount in advance depending on the request of the vehicle seller. For the remaining amount, the buyer will borrow and pay each period with the corresponding interest rate in Vietnam.

The current interest rate for buying a vehicle in installments will be agreed upon by the buyer and the credit institution within a certain period in Vietnam.

Best regards!