Interest Rate Of Car Loans In Automobile Industry
If everything is done the right way, the only thing that can come in the way of purchasing your dream car is the hefty sum
. Unless the car buyer was extremely rich to have the required cash ready, buying a car was once upon a time a very difficult process. It was meant only for the rich and famous. The common man had to struggle and save his earnings for years together to experience the luxury of a new car. Thanks to the car loans, these days, cars have become a necessity and not a luxury. However, it is necessary to know A-Z about the automobile loan in order to get the best deal.Firstly, do not skip your homework. Research on the Internet and get details of car loan interest rates from various banks and lenders. Get as many details as possible. As of now, banks are increasing car loan rates and it is becoming more and more difficult for new car buyers to afford these ever-increasing rates. Recently, we heard about the hike in loan rates in the automobile industry. Some lenders have already increased the auto loan rates and others are likely to follow suit a little sooner or later. We may not be able to decrease these rates which have increased by 0.25 to 0.50 per cent. However, there is something we can still do. Analyze carefully what kind of loan is going to most budget-friendly and go in for that particular loan that will save us lots.
Currently a few banks offer 9 to 13 per cent floating interest rate on new car loans and 14.5 to 17 per cent on used car loans. The fixed rate for new car loans is somewhere around 10.5 per cent. This is the scenario as of now and is likely to change soon. You need to be very careful while applying for your new or used car loan, conduct a careful research and, first of all, be aware of the different interest rate types. Floating and fixed are the two types of interest rates that prevail in todays automotive industry.
Perform a thorough study and see what type of interest rate is going to best suit your condition. If you feel the rates may go down over a period of time and you are ready to take the risk, go for a floating interest loan. However, if you feel the rates are most likely to go high, go for a fixed rate loan. While the floating type car loan involves a lot of risk, the fixed type is safe enough. The rate that is fixed initially is what is going to be carried throughout the loan repayment tenure.
As mentioned earlier, go through the rates of as many banks and private lenders and go in for the auto loan with the least interest rate and EMI.
by: carazoo.com