Deciding to buy a motor car is the doorway to so many decisions to be made. After finding the answers to questions like which car, where and from whom to buy the car, it is only natural to decide upon your funds. How much can you pay on your own? Is it convenient to for financial assistance from auto loan companies and pay back the sum in installments? 75% of the average salaried class car buyers go for loans simply because it does not empty the family savings pool. Funds for the rainy days need not be drained for buying a motor car.
Which is the best source for finance?
There are varied terms and conditions on auto loans from various sources. Banks and co-operatives could be a safe option. But yes, the process is carried out strictly in accordance with rules and hence, approval might take time if the loan applicant has had a problematic credit history. Then there are dedicated auto loan companies that call potential loan applicants to work out a feasible scheme of finance for their car purchase. Some people also go for loans from the same car dealership where the car is purchased.
What loan aspirants should know?
The potential borrower is expected to read through the options from the auto loan companies before asking for a free quote. Mostly, lending companies and dealerships offer loans for anywhere from 2-7 years on variable interest rates as applicable. The applicant can go for secured (car as security) or unsecured loans (higher interest but no need of security), poor credit auto loans or student car loans. Up to 85% of the financing is done by the auto loan companies; the borrower needs to pay only the down payments in one go. Higher the down payment, better the chances of fast and higher loan approval, especially for those with good credit record.
Good auto loan companies attend to your needs
Car loan companies claim to offer the best auto loans online, but the borrower needs to extract all the information and look for reliable sources with a proven track record.
Borrowers could look for new or used car loans online on the basis of
- Their existing credit record: the FICO score is used as a standard to decide the borrower’s possible ability to pay back car loans.
- The type of car: luxury cars cost more and new motor cars have less resale value than used cars from government auctions. Keeping this in mind, the loan amount could vary. Large loan approval calls for larger down payments and at times, higher interest but approval is fast.
- Payable rate of interest and term of loan: the two are interdependent and rates could go down for faster payback. Regular income applicants can opt for different amortization schedules. Reliable auto loan companies that offer flexible loan schemes are in demand.
The borrower must go through all the data, reviews and quotes to decide upon best car loans. Ideal auto loan companies work in tandem with borrowers towards a win-win situation.