The Benefits of Getting A Car Loan
Category: Auto Loan
Today, many dreams like owning a car come to life because of the availability of loans. When you shop for a car you look at several different dealers, makes and models. It is just as important to shop for a car loan. It’s easy to avail loan wherein the financier pays for the maximum amount of the car value and the customer requires giving down payment only. Sometimes these car loans seem to actually enhance a car purchase deal as they are accompanied with waivers of either an EMI or two, or some other financial sweetener. Before you opt for one, here’s a look at some of the car loan benefits that come along with it to give you good financial mileage.
Customized EMIs: A car loan borrower can easily customize the EMI as per his repayment ability while negotiating with the financier. Initially while paying a wider margin amount you can easily cut down the EMI that you are entitled to give over the tenure of the loan.
Enhanced eligibility: In current economy scenario, the competition among the financiers has increased which resulted in buyers benefiting in terms of maximum coverage of population under car loan eligibility criteria. Whoever fulfills the basic minimum income stability can easily avail a car loan from financial institutions and banks.
Subject to collateral: In case of a car loan, the vehicle bought itself termed as the collateral excluding the need of serving other property as additional security for the loan. In the default event, the bank can only repossess your car and not any other asset.
Low allowances: Now, the banks are eager to finance upto 95% of the car on road price which indicates that the customer does not require spending in accessories, registration and insurance. Thus people having less funds can also enjoy the ecstasy of owning their dream car.
Simple process: The loan procedure has been greatly interpreted in order to make car loan look as attractive as the car. The documentation and approval process takes less than a day and in some cases on the spot approval is also possible to woo more number of people into taking the car loan.
Ownership: You will have the discretion to make any modifications to the vehicle throughout the duration of the loan. At the end of the loan term you will own the car.
Dealer advantages: Car dealers have tie-ups with auto financing institutions to offer customers a one stop car purchase shop. However, financiers offer car loan with waivers of either an EMI or two, or have zero interest to fetch more customers. Anyone can now buy a car with no money in their bank.