Things to Keep in Mind While Opting for A Used/New Car Loan

A car in the household is a necessity. It is no more a status symbol. It upgrades your standard of living as well as provides you with comfort and ease of travel. Ideally you would save for a few years before you decide to buy a car. Nowadays, you do not have to wait for years to get your car home. You can avail a car loan and purchase a car whenever you want. Used Car loans and new car loans are easily available and cover 100% cost of your vehicle. You ask how? There are instant personal loans online which you can avail at competitive interest rates.

Here are few things which you should keep in mind if you choose to take a car loan.

The Loan EMIs Should Fit Your Budget

Once you have decided which car to buy and how much it costs for, you can calculate the car loan EMI using the EMI calculator available on the lender’s website. As you have to pay these EMIs each month you should have an idea whether you can pay them.

Keep A Track of Your Credit Score

A credit score is the most important criteria which any lender will first look at. Your credit score needs to be impressive enough for you to be eligible for the loan. As your car is not hypothecated, the lenders need some proof of your payment capacity other than your monthly earnings. A good credit score is proof that you are responsible to repay the amount on time.

Borrow Only as Much You Need

When you take a new car loan you can avail it for an amount which includes the car cost as well as other expenses such as insurance, accessories, additional features etc. These are the things for which you do need funds.

Choose a Good Lender

Taking a loan is as big as decision as purchasing the car. Just like you for a dealer who offer you the best deal and services, likewise you are supposed to look for a lender which provides you with a good offer. The car loan interest rates should be competitive and should fit your budget.

Look for Other Charges

There are other charges involved such as the prepayment fees, processing fees, late penalty etc. You need to know the rates of all of these additional charges. Choose a lender which has the lowest rate of these charges.

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