Are You Planning to Finance a Vehicle? Know All About Auto Finance

InternationalBusinessLeague.com

Papers Required For An Auto Loan

Gone are the days when people would dip into their cash reserves and savings to buy cars. Almost all – both individuals and companies – prefer to buy vehicles on installments, because that allows them the liberty of not having to invest a huge amount upfront. That’s the need gap being filled by almost all banks and financial institutions, who now offer auto loans on lucrative terms to consumers, egging them to fulfill their dreams and aspirations, just by paying some extra interest. According to industry estimates, in the last few years alone, 60% of cars were bought through finance deals. Two-wheelers, being cheaper, had a smaller share in the auto loans market.

With more and more attractive car and two wheeler brands and models jostling for the consumer’s attention, banks and financial institutions, are also falling over each other to offer the most customer-friendly loan schemes, which can suit even the most humble earnings. That’s what creates an embarrassment of riches – a confusion over which bank to choose and which loan to opt for.

Here are some handy tips and comparisons, which will help you decide whom to go to and for what, depending on your needs and priorities.

Tips to Follow Before You Go for Auto Finance

Step 1:- Choose A Car :- The first step that is essential is to choose a car of your choice and find out its manufacturer, model. Also, don’t forget to find out the nearest distributor for your convenience.

Step 2:- How Much Can I Afford? :- Cars look jazzy on websites and in showrooms. But can you afford it with your income? Make a fair assessment about how much money will you able to pay back each month if you were to go for an auto loan. This would prepare you to approach auto finance companies. Don’t forget your car’s running expenses though. Fuel isn’t cheap anymore!

Step 3:- What’s the Cost of My Dream Car? :- You may love the car your neighbor drives, but its price tag may just be too hot for you. Settle for a bunch of options, whose price tag is within your reach. Don’t forget, there are a whole set of paraphernalia expenses involved in the purchase of a car, which can sometimes throw your budget out of gear.

Step 4:- What Are My Priorities? :- You may be able to afford an auto loan of Rs 5 lacs, but paying an equated monthly installment (EMI) of more than Rs 12,000 could be stressful. On the other hand, you may want to save on interest rates, even if the EMI is a bit steep, because you stand to gain in the long run. Figure out what’s more important – convenience of payment terms or lower interest rates?

Step 5:- You are Ready to Explore :- Now that you have made up your mind that you will take your loved ones out for a spin within a week, check out who offers what, and which one is best suited for you. Click on this table to find more.

Step 6:- Few Things to Remember :- Add Extra Expenses to Cost of Vehicle. Do not forget to add the charges for car maintenance, fuel, interest and insurance rates to the cost of vehicle. The gross is what the vehicle costs you.