As we all know, the end of the year is considered the best time to buy a car. This is because most of the showrooms offer huge discounts on vehicles to the customers before the new stock arrives.
Check Where you will have to Pay the Least EMI
If you are also planning to buy a new car, then this could be the best time for you to avail the benefits of huge discounts from the car companies. But if you want to take a loan, then you should take special care of some things. Here you are told some important things related to car loan, which everyone should keep in mind while applying for the loan.
For this it is necessary that when you have selected the model of the car according to your budget and convenience, then the arrangement of funds for its purchase comes in your mind. Usually people need a car loan to buy a vehicle of their choice. And in such a situation, they apply for the car loan to the financial institution providing the funds. If you are also going to do the same, then here are the important things related to car loan. You should keep these in mind while applying.
Take loan at low interest rates
Taking loan at low interest rates proves to be most beneficial, first of all check the interest rates of all the banks that which bank can offer you loan at the lowest interest rate. Here you should take a car loan with an affordable interest rate. You can use many banks in this. Banks give you car loans at an interest rate of less than 7 percent.
Maintain Civil Score for more Loans
When you go to different banks for a car loan, the banks offer you loans at various interest rates. At this point, you should opt for the car loan with the cheapest interest rate. You get more benefit in this. On the other hand, if your plan is to buy an expensive car, then you need to maintain your credit score from the very beginning, because if the civil score is above 750, then you get more loans.
Take Special care of the Time Period of the Car Loan
While taking a car loan, you must pay attention to the tenure of the loan. Many a times people end up repaying the car loan for a longer period due to the higher EMIs, due to which you end up paying more money to the bank in the form of interest. You must decide that the longer the time period of the car loan, the more interest you will pay to the bank.
Take Care of the Repair Tenure
The repayment tenure of the loan is very important. If a long-term loan is chosen to raise funds, then the monthly installment ie EMI will come down to repay it. However, more interest will have to be deposited on this loan. On the other hand, if a short term loan is selected, then the monthly installment amount has to be paid more. In this situation the loan has to be repaid quickly. If you opt for a car loan with a shorter tenure, then the lending financial institutions offer a lower interest rate on it.
Pay EMI on time
Paying EMIs on time proves beneficial for all loans. You should keep paying the EMI from time to time after taking the loan. Failure to do so will damage your credit score. After taking the loan, you should deposit the EMI well before the due date, so that late penalty charges and defaulters can be avoided. There are times when people fail to repay the car loan on time and their car gets towed.
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