Most of you reading this may have not lived in an era when one had to wait for several months after booking a vehicle, even a few years in some cases, to finally receive it. The reforms passed during early 90s changed all that and presently it takes a matter of days or maybe a few weeks to receive the delivery of one’s dream vehicle. According to data available with SIAM (Society of Indian Automobile Manufacturers), the total number of passenger vehicles sold in 1970s was 32,000 units. Comparatively, In May 2018 itself, more than 3.01 lakh passenger vehicles were sold in India. The average holding period of owning a car has also undergone a drastic change – In the 70s and 80s it used to be around 10 years which has reduced to 4 years now.
We live in a time when it is a breeze to purchase a car of our dreams. There are several options available from leading brands, authorized service centers all around, latest accessories and features are included in automobiles, delivery times have reduced and financing is readily available. Financing played an important role in improving penetration of automobiles in our country. It has also ensured that one can aspire to own any car and easily purchase it by availing of a car loan. Family members also get highly involved when buying a car and their happiness knows no bounds when the car one’s dreams has been purchased.
Let us look at 9 reasons why taking a car loan makes sense
Customize EMI – Did you know that you can negotiate with prospective lenders about the interest rate on the basis of your credit score and past/existing relationship? You can accordingly customize your EMI and get the best possible deal for your dream car. It is also a good idea to check whether, the bank with whom one has an existing relationship, has offered a pre-approved car loan. Most banks do offer this and it turns out to be cheaper.
Loan Amount - One is eligible for securing an auto loan equivalent to anywhere between 4 to 6 times one's yearly income. So, there is no need to compromise on individual and family aspirations. With rising incomes even at the entry level for young professionals, there has never been a better time to avail for a loan and acquire a world class automobile.
Fixed interest rate v/s Variable Interest rates – Several banks offer floating interest rates as well apart from fixed interest rates. If you feel your income will progressively increase over a period of time, it is a good idea to go for variable interest rate option. Initially, your EMI would be lower but would increase as your income increases. So even if your present income is not enough to purchase a car, you can still buy one.
Maximum Financing - Don’t have enough money to arrange for a substantial down- payment? Not to worry – up to 95% of on-road price can be financed. This amount will cover registration, accessories as well as car insurance. This facility allows one to purchase a sedan or an SUV even without arranging for a hefty down-payment.
Used Cars – Some of us are open to purchase used cars provided the quality and price are right. Financing is not only provided for purchasing new cars but also used ones. Most lenders also don’t include any restrictions on type and brand of a vehicle which one wishes to purchase. The best part is, even in the case of a used car, financing can cover close to 95% to 100% of the used cars on road price.
Easy to take a loan – Now a days, lenders have started offering same day approval and disbursal of the car loan. If your documentation and eligibility are in place, in some cases, it is a matter of minutes before the loan amount is credited to your account.
Tie-ups with dealers or portals – Dealers and Distributors will mostly have a representative from the auto loan department of a lender in their premises. As a prospective customer, you would do well to remember that not only the salesperson working in the dealership but even the loan agent has targets to achieve. While purchasing during festive seasons, you not only get discount but can also negotiate further with the loan agent to reduce your interest rates.
Benefits for business owners – If you own a business, you get dual benefits of taking an auto loan. You can not only claim depreciation for the vehicle which you purchase but also claim a deduction on the interest portion of the auto loan while filing taxes. Any enterprising business owner would appreciate the importance of saving every penny and would certainly explore this option.
You can improve your credit score – Struggling with a low credit score or wish to create a robust one? An auto loan offers you the opportunity to build up a strong credit score which may be of great use when you end up applying for a bigger loan in the future, for instance – while buying a house. You will need to ensure that you pay your EMI regularly and do not default on even a single one.
In most cases, purchasing a car is an important milestone in one’s as well as one’s family’s life. With the plethora of options available today, a customer is spoilt for choice and just needs to make up her mind about the lender she wishes to choose. To make this milestone worth remembering, remember to trust a brand such as YES BANK which offers several facilities to avail a car loan. In fact, one of their core propositions is to ensure that an individual is able to buy a car according to her taste and choice. YES BANK ensures that the overall experience of availing a loan – right from application to disbursal is a friendly and hassle-free process.
What are you waiting for? If you are willing to purchase a car, get in touch right away by clicking here: YES Bank Offer. For latest auto news, new car hot deals, new car launches and car advice, follow mynewcar.in on Twitter and Facebook.