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Should You Finance...

November 06, 2014 16:04

You've found the perfect car as per your requirements and budget, and now you ponder: should you finance a car or not? Most people finance their cars, some lease and a very few pay with cash. Each method has its benefits and liabilities, but the answer to ‘should you finance a car’ depends on the car’s type, expected duration of keeping the car and your financial strength.

Car finance in India is popular. Many banks provide a car loan in India. The EMI (Equated Monthly Instalment) of a car loan in India is determined via an EMI Calculator and can also be done simply online by the individual. The Auto Market provides over 35 financie rs that offer solutions of car finance in India to all potential car buyers.

Getting a car loan in India is not a preferable option because a car is a depreciable asset and modifies extensively with time and technology, unlike houses that increase their value. So, if you have the money to pay, it’s better to purchase your vehicle with a down payment only. If it is not within your financial means to buy a big car, then incline towards buying a smaller car, but try extensively to avoid taking a loan for the vehicle.  So to answer the question of ‘should you finance a car’ is pretty clear.

Also, if you are unwilling to spend a large amount on purchasing a brand new car, why not buy a second-hand one? It will be less expensive, retain most of its original value in case you want to resell it later, and the insurance costs will be much lower. Though a used car finance may be of lower expenditures due to the reduced cost of the vehicle, yet it is still not an economical loan. Down payment will always be encouraged over any other means of reimbursement.

In the news, it was shown that banks such as HDFC, provide a flexible repayment loan with the repayment option of 12-84 months. IDBI offers loans that claim to be the lowest in the market, further it waives off the processing fee. PNB proposes 100% financing on the ex-showroom price of the vehicle. If you have chosen your aspired vehicle and are determined to purchase it, even via a loan, then make sure to look out for such a scheme of car finance in India that makes purchasing an effortless chore.

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