What is the total-amount cap on lending, and how does it affect car loans?
The cap limits a person's total borrowing to one third of annual income. We explain how it relates to car loans.
The total-amount cap limits your total borrowing from money lenders to one third of your annual income. If you have used up this limit, you cannot take out new borrowing even if you have an income.
Do car loans count?
An instalment contract made through a dealer is covered by the Instalment Sales Act, not the Money Lending Business Act, so it is not itself subject to the total-amount cap. However, credit companies check your other borrowing when they screen, so having no room left can affect the result.
In the case of our in-house loan
CarMax's in-house loan is a direct transaction between us and the customer. Because no credit company is involved, we set the screening standards.
To find out whether you can buy in your situation, contact us by telephone or LINE and we can answer on the spot.