7 Car Loan Financing Tips You Shouldn’t Ignore What is a Car Loan? A decade ago buying a car was considered as a luxury. But, today affording a car is possible in spite of the increase in the astronomical cost of the vehicle. The borrower can have a car by paying a certain amount as a down payment. The vehicle loan is mortgaged in favor of the lender until all the EMIs are not over. After paying all the EMI's, the car loan buyer becomes the owner of that car. Before you choose any car, you need to research on below aspects of it:
Steps of Purchasing a Car 1. 2. 3. 4. 5. 6.
Set your budget. Select few cars of our choice. Do test drive. Calculate the cost of acquiring the vehicle. Decide on financing options – cash or loan. Actual purchase & registration of the car.
Important Loan Parameters Loan Amount: The car loan eligibility is based on customer’s income, CIBIL score, type of employment engaged and other credit parameters. ● Interest Rates: The car loan interest rate range fall between 8-13%. On the basis of customer’s profile, the interest rate is decided by the lender. ● Tenure: is decided by the customer & banks mutually. The car loan EMI will be higher, if you opt for lower tenure. ● Processing Fee: Usually no upfront fees are taken. However, 1-2% processing fees of the final loan amount can be charged. ●