Modern sedans, SUVs, and luxury automobiles are expensive and sophisticated. These desirable vehicles have attractive designs and high end electronic features. However, buying such vehicles is a costly affair and not all can afford cars. But if you are thinking about buying a car, the best way is to opt for car loans. Thankfully, the highly rated bankers and lenders have a wide range of financial products. The auto enthusiasts can approach these institutions for a favorable loan package.
The creditors have well defined eligibility criteria for approval of suitable applicants. The borrowers must be ready with all the documentation. The banking products have these salient features:
- A bank’s customers receive uniquely designed schemes with special benefits.
- Borrowers can select any vehicle from a wide range of cars available in different price ranges.
- The car loans are processed and approved online after verification of documents.
- The bank charges competitive interest rates without any hidden charges or fees.
- The friendly repayment terms include easy monthly instalments (EMI).
- The financial products are also designed with annual limits, between 5 to 7 years.
- The borrowers are assured 100% financing on vans, sedans, convertibles, SUVs, etc.,
Banks are not the only place from where you can borrow money for automobile purchases. The car dealers have links with third party lenders who can arrange funds for your needs. Banks not only give Car loans, but they also provide loans for home, business, personal needs, and gold purchases. All the stakeholders in the financial markets play by rules and regulations. The borrowers must first reassure themselves and gain clarity on all the details.
- The lenders verify age limits, salary and income details, type of business, etc., of a borrower before giving a loan.
- Loan approvals also require the applicants to have various documents and permanent address.
- Focusing solely on monthly repayments is not cost efficient for the car buyer.
- Third party lenders seek profits and their approval is not a proof of affordability.
- The buyers must negotiate the interest rates and repayment terms for a better deal.
- Anything less than 20% of costs as down payments is not advisable as future costs rise.
- Car loans should not go in refinancing as the interest rates arise in a very short time.
- Buyers should enjoy the vehicle ownership for a few years after paying off the loan.
Financing Imported Vehicles
Banks and third-party lenders carefully design the financial products. They understand risk factors and pricing mechanisms better than automobile buyers. The customers have misconceptions as they do not know the basic knowledge of car loans. Vehicles do cost less and are easy to repossess than a house or property. But the prices go up for imported cars and global luxury brands. Also, third party automotive financiers have innovative products for sophisticated borrowers.
Make a note of these important criteria for ensuring a viable loan product:
- Banks, Credit Unions, and Financial Societies have unsecure personal loans. The lower interest rates are tempting, but the initial hurdles may become insurmountable.
- Specialist third party lenders grant secured car loans for expensive and luxurious vehicles. The high initial deposit requirement minimizes the number of loan approvals.
- Buyers should be careful and check the credit ratings and quotations of these lenders before approaching them. The car loans should have no restrictions on brand and age of the imported vehicles.
- The financier should also facilitate insurance coverage and fixed interest rates. You should let an intermediary or financial broker enter the negotiations.
- The buyer should have a choice to purchase from auto dealers. Also, they should be able to get it from private car sellers.