To start with, buying a car itself is a dead investment i feel as it positions itself on a depreciation activity. For instance, you have an excess amount you can buy a car for yourself if not it is always better to opt for an EMI. Because you don’t feel that extra pressure to clear the loan. You might end up paying around INR 10,000 for a top class sedan car, worth 7-9 lakhs precisely. Though it was a luxury earlier but now it has become a necessity as the pollution has drastically getting increased day by day, it is better to drive to office or where ever you want to got. Before you finalize on buying the car, you need to know much about car loan interest rate in india.
- You Will Save Your Capital
Suppose you have 5 lakhs in cash or in your acccout. I mean to say liquid accountability, and you invest it on a car and you sell it after using it for next 4 years. You will be selling it for half the price that you had invested on, which is why it is termed as a dead investment. For a working class crowd, it is better to prefer a car loan. Nowadays, the demand for automobiles have come down likewise the interest rates. If you’re planning to buy car, it is a best time now.
- Top-up Loans
Bank officials always focuses on the repayment terms. If you pay all the debts within time, they will provide a top-up loans wherein you can buy one more car with continued easy monthly interests. Not only you are getting a new car but also you are saving some money because once you sell it after 4 years, it will be of a very less value.
- CIBIL score
Suppose you had a very bad cibil score and you want to improve it, you just have to ensure that you pay all the debts and especially the car loan in time. Though it seems tough never ever miss a single payment. By following this pattern on early payments of due, you can improve your cibil score.
We hope this answers most of your doubts regarding the car loan interest rate in india. Just in case you have any further questions, you can always ask us in the comments. Stay connected to us for more such sections. Thanks for reading!