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INSTRUCTIONS ON VEHICLE PURCHASE WITH CREDIT CARDS AND TIPS

Vehicle purchase with credit cards is now one of the fastest and simplest ways to own a car, which is preferred by many people. Moreover, at 0% interest rate, only the installment for a fixed period is required to settle your vehicle loans easily.

1. About 0% interest credit card vehicle purchase plans

Most banks now link with business units in many fields to make credit card payment easier. A vehicle purchase is there if you already have a credit card, it is no longer difficult for you to own a brand new and genuine vehicle. 

1.1. What is vehicle purchase with a credit card?

A credit card is a type of bank card that the owner can use to pay without the available money in it. Vehicle purchase with a credit card involves first paying for a purchased car with a credit card, then returning the amount to your bank at the end of each period.

Currently, most businesses launch offers by which customers can apply for the 0% interest vehicle purchase installment. Instead of the payment off within 45 days, the payment can be made in the optional terms of 3, 6, 9, or 12 months, reducing the financial burdens compared to direct payments as before.

For example, you buy a Vision motorbike that costs about VND 30 million. The MC2 credit card of VPBank owned by you will facilitate your quick payment of this amount with just one time of card swipe and without cash. You can apply for VPBank’s 0% interest installment plan with the term of 12 months. Each month you need to pay the bank only VND 2.5 million and a very small installment conversion fee.

1.2. Forms of vehicle purchase with credit cards

There are currently 2 forms of vehicle purchase with credit cards for you to choose.

0% interest installment

Vehicle purchase with 0% interest credit card installment involves a bank loan to buy a vehicle and then pay into installments in a certain period, at the interest rate of 0%. In this case, only a very small installment conversion fee is charged for you.  

Installment conversion fee means the fee charged by the cardholder to convert from regular card payment to installment. Therefore, it is advisable to choose the bank with the appropriate fee rate to open the card.

One-time payment with credit card

One-time payment with a credit card involves an owner's credit card payment to buy a vehicle directly at the company or its agent. Then, his/her repayment to the bank can be deferred until his/her payment period. The advantage of this form is that the vehicle purchaser, instead of immediate payment in cash, can take advantage of the interest-free 45-day period to finance the required amount of money.

2. Why is vehicle purchase with a credit card is better than that with a vehicle loan?

Using credit cards, cardholders can be offered with many attractive incentives such as cashback, earning reward points for free shopping... Purchase of a vehicle with a credit card will bring the cardholders the countless benefits:

2.1. No complicated procedures

Compared to the form of vehicle loans, using card credits can eliminate the need for spending too much time preparing loan documents or waiting for your bank's approval and disbursement. Only with a card, the cardholder can make a quick payment for a vehicle with just one swipe.

2.2. Interest-free 45-day period

Interest-free 45-day period means the period when no interest and no penalty for late payment will be charged provided that you, on or before the specified payment date, pay your bank the amount paid out from your credit card. There are up to 45 days after the card payment but not 1 day for cash payment for you to finance a vehicle purchase.

2.3. Booming offers

With a credit card opened at a bank affiliated with a vehicle dealer or store, you also have the opportunity to enjoy many attractive offers. In addition to gifts from vehicle dealers, the offers such as earning points to exchange gifts, or discounts and cashback to cardholders... are available.

2.4. Improvement of credit score

Credit scores will determine how easy it is to access other bank loans. A good credit card shopping history will significantly improve your credit score and ease future loans.

2.5. 0% interest rate

You will have the opportunity to participate in the 0% interest installment plan for your vehicle purchase with credit cards. The installment term maybe 3, 6 or 12 months; no fee other than installment conversion fee is charged for you.

2.6. Flexible payment terms

Depending on the cardholder's ability and the value of the purchased vehicle, the payment term will be flexibly determined by the bank, which may be 3, 6 or 12 months, as applicable.

3. Dealers to accept motorbike purchase with 0% interest credit card installment

To attract more customers, all of the current dealers accept vehicle purchase with 0% interest credit card installment, including:

Dealers of Honda, Yamaha, Piaggio, Suzuki, SYM...

Big e-commerce websites such as Tiki, Lazada, Adayroi, ... distributing motorbike products.

4. Instructions on Vehicle Purchase with Credit Cards

Vehicle purchase with credit cards is now very popular, with simplified procedures and many incentives.

4.1. Conditions for vehicle purchase with credit card installment

- To buy a car with a credit card, the cardholder must comply with the following conditions:

- Credit card is in an active state

- The cardholder is a primary holder

- Vehicle purchase history is clarified and verified

- The installment-related amount is from VND 3 million or more

- The credit card account is not in the state of late payment

- The credit limit balance is larger than the installment-related amount

Formula to calculate the monthly installment amount = (Amount registered for installment + (Installment’s interest rate x Term of installment x Amount registered for installment))/ Term of installment

For example: You buy a motorbike worth VND 35 million with 0% interest installment in the term of 3 months.

Monthly installment amount = (VND 35,000,000 + (0*3*VND 35,000,000))/3 = 11,666,666 VND

4.2. Instructions on vehicle purchase with credit card installment

Step 1: Go to a dealer or visit a vehicle-selling e-commerce website that accepts your credit card

Step 2: Select the product you want to buy with installment

Step 3: Register for the 0% interest credit card installment vehicle purchase plan

Note: You can make a one-time credit card payment if your credit limit and solvency in the next statement period are sufficient. In this case, you do not need to register for the installment plans.

5. Top-5 banks for vehicle purchase with credit cards

5.1. VPBank credit card

Types of fees of vehicle purchase installment plan

- One-time installment conversion fee during the period of installment at partners. VPBank only charges this fee at 15 partners, for details, see: VPBank credit card installment

Card limit (maximum)

- VND 1 billion

Involved Dealer/ e-commerce websites

Tiki.vn, Piaggio Xuan Cau, Adayroi.com, ...

Hot deals

- With the 0% interest installment plan, terms of 3, 6 or 12 months are optional.

- With the 1% interest rate installment plan, the payment can be divided into smaller parts for the term of up to 24 months.

- Earning points or cashback, earning reward miles depending on the types of credit cards used

-  Attractive gifts from dealers

VPBank’s credit card installment vehicle purchase plan

5.2. Citibank credit card

Types of fees of vehicle purchase installment plan

- Installment conversion fee as prescribed by Citibank

Card limit (maximum)

 VND 900 million

Involved Dealer/ e-commerce websites

cellphones.com.vn, adayroi.com, shopee.vn, Lazada, ...

Hot deals

- Cashback or earning points

- Free phone cards, gift certificates, vouchers

- 0% interest installment with the term of up to 12 months

Vehicle purchase with Citibank credit card

5.3. HSBC credit card

Types of fees of vehicle purchase installment plan

- Banking transaction fee for vehicle installment loans as prescribed from time to time

Card limit (maximum)

VND 1 billion

Involved Dealer/ e-commerce websites

Dealers of Vespa, Piaggio Sapa, Xuan Cau, Quang Phuong

Hot deals

- 0% interest installment

- Term of up to 12 months

- Earning points, Cashback, direct discount… 

Information on HSBC credit card vehicle purchase plan

5.4. TPBank credit card

Types of fees of vehicle purchase installment plan

- Installment conversion fee as prescribed from time to time

Card limit (maximum)

VND 2 billion

Involved Dealer/ e-commerce websites

adayroi.com, tiki.vn, Lazada, … Piaggio Xuan Cau, Honda

Hot deals

- Earning points

- 0% interest rate for the term of up to 12 months

- 1 % interest rate for the term of up to 24 months

- Attractive gifts and vouchers

Vehicle purchase with TPBank credit card

5.5. Sacombank credit card

Types of fees of vehicle purchase installment plan

- Installment conversion fee as prescribed from time to time

Card limit (maximum)

VND 1.5 billion

Involved Dealer/ e-commerce websites

Lazada, Vien Thong A, FPT Shop, Loc Phuc Jewelry, Cho Lon Tourist, Cho Lon Electronics Supermarket...

Hot deals

- Earning points to exchange gifts

- 0% interest installment at affiliated partners 

- 0% interest installment anytime and anywhere

- Term of up to 12 months

Using Sacombank credit card for vehicle purchase installment

6. Notes for vehicle purchase with credit cards

Before registering for the vehicle purchase with credit cards, the important things to keep in mind are as follows:

  • It is advisable to learn about conversion fees of the involved installment plans to select the low fee which is consistent with your affordability.
  • It is required to take account of your future solvency to select either 0% interest installment or one-time payment so that your debt is not too excessive to affect other spending plans.
  • At the same time, it is suggested to carefully consider and choose a reasonable payment term so that no late payment or penalty arises. 

Vehicle purchase with a credit card is a payment method that brings many benefits to control spending. Now, registering credit cards at banks in Vietnam is almost simple. Therefore, using credit cards for shopping not only helps to save money but also ensures the quick payment even when no much cash is available. Therefore, you, at your discretion, buy a car with a credit card to optimize your cash flow and balance your costs and then pay by 0% interest installments. It is a smart and safe way to spend your money!