Buying a new car isn’t that difficult today. The biggest fight is choosing the right car. For car loan, there are many options in the market. However, it is easy to read through the lines and go for a New Car Loan without any struggle. We at MotorOctane always help you to buy the right car. You can check out our website and even our Youtube channel for all the latest car news, reviews and comparisons.
Today, we will explain the benefits of choosing car loan. And this is very helpful in many ways for most of us to decide the right car. EMI a fairly new concept in India, though it has been doing well in automobiles. There are many things you might ignore, but these are vital and will help you to make better decisions.
- Getting a higher variant/ next segment car: This has boosted sales of new cars and even encouraged many to buy cars/variants that are at the moment out of their budget. For instance, in a 10-lakh car model, the base model and high end model are priced at a difference of Rs 1 lakh. On EMI, this will translate to less than Rs 1000-2000 on EMI depending on the loan tenure.
- Increase the loan tenure: Some banks like Axis Bank offers a loan for about eight years. This makes it easier to buy a more expensive car, and adds flexibility in EMI.
- Low downpayment options: A buyer can pick up a car at lower or even in some cases zero down payment options. This makes it easier to procure a car, for those who are at the moment short on cash.
- No extra security/Guarantee: In the older days, you needed something more expensive and valuable as a guarantee for the loan. Today none of that is needed. This makes it easier to apply and get a loan.
- Fixed Interest Rates: With fixed interest rates, one doesn’t have to worry about new car loans or the fluctuating interest rates, which can sometimes give sleepless nights.
- Sell Your Car when under Loan: Many a times, you need to sell of your car to get a new one. And if your EMI is on, you cannot do that. If you can get a No Object Certificate from your bank for the same, you can sell it and repay the bank of the loan. This adds more flexibility to your finances.
- Spend Money Wisely: With a good amount of amount left in hand, you can spend it wisely or invest it to bear the returns that will help you to repay your loan. Thus saving good amount of money too.