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FINANCE FOR MY CAR?

Simply put, car finance is defined as money borrowed from an institution for purchasing a car. Car finance normally takes the form of a loan which you must pay back over an agreed period of time. You can finance a new car, or a used car, depending on your particular wants and your financial situation.





GETTING CAR FINANCE


You might be wondering, who will finance for my car? It is actually very easy and you can get your car financed simply by applying for a loan, either with a specialized lending institution, or with a car yard itself. Almost anyone can get car finance, due to the fact that cars are collateral, so the risk to the lender is low. If you don't meet the payments they can simply repossess the car. You can look online for car finance, there are plenty of websites that specialize in financing cars, and many times they have online quotes which will tell you quickly how much a loan will cost. In addition to that, you will be able to compare between many different car finance offers and pick the best one for your situation. Factors To Take Into Consideration While Applying For Car Finance You should always look at the deal you are getting when you apply for car finance. Be careful to look at the interest rate, and try to get it as low as possible. If you have good credit then you should be able to get a pretty good deal on your interest rate. People with poor credit might find it harder to get a good finance deal, but if you keep up with your payments your credit rating will improve and you may be able to refinance your car later. Always check the fine print and see what kinds of penalties are incurred if you miss a payment, or if you want to pay the loan off more quickly. Oddly enough, some finance companies do not want you to pay the loan off more quickly, because it means they cannot charge you as much interest. As a result some companies will charge a penalty if you pay the loan off early. There are some good tools available to help you make a good choice when you apply for car finance, they are called loan calculators, and they can be found free on many car finance websites. These loan calculators can tell you how much you will pay in interest, how much the total cost of your loan will be, and how much you will have to pay monthly. Simply type the data that you have regarding your situation into the calculator, such as how much you want the loan for, how long you want to be paying it off for, and how much the interest rate is, and you will be rewarded with the real cost of your loan. You may be surprised at how deals that look cheap sometimes turn out to be very expensive indeed.


CAR FINANCIERS


The opening up of the Indian economy for foreign direct investment by the major automobile companies in the world has resulted into the introduction of various models of cars. In the last few years India has successfully emerged as one of the major markets for automobiles with indications suggesting the country emerging as one of the top car markets in the next couple of years. One of the main reasons behind this unprecedented growth in the Indian cars has been the availability of easy and simple financing options. Various financiers in India through effective car financing have also played pivotal role in the substantial growth of three wheeler industry in the country. Auto finance rates are not as high as they can not be paid back. With the loans and financial assistance,many consumers have been able to become the proud owners of cars that once many Indians could only have dreamt of. The nearly 10% annual growth of the auto industry has been possible due to the direct and indirect help from various financiers in India. One can avail of auto finance schemes of popular automobile financiers like

1. ICICI Bank, 2. HDFC Bank, 3. Maruti Citicorp, 4. Sundaram Finance, 5. Tata Finance, 6. FISAF, 7. KMPL, 8. Associates Finance, 9. Citibank.

Most of the leading public sector banks even offer loans for cars at reasonably easy terms to be repaid through the Equated Monthly Installment (EMIs).Most of the financiers in India offer car loans for new cars as well as used cars which are not older than 3 years. Used car finance is an effective tool because it helps the people from the low income groups. Car finance ratesmost of the times are kept as per the viability of their payback.Collateral security has also to be deposited in some of the cases. Usually, 85% to 90% of the value of the car is provided as a loan. The rate of interest varies some where around 12% (reducing) annually. Realizing the immense potential, some of the car manufacturers have even tied up with car financiers who provide guaranteed auto finance loans to the customers on all models of cars. And this particular reason has facilitated the growth of car sales in India in a big way. Used car finance,car finance rates,re finance car,guaranteed car finance,auto finance loans,auto finance rate,car financing.


Possible Advantages/Disadvantages of Taking Car Finance


Advantages of taking car finance include being able to actually have a car long before you have saved enough money to purchase one outright. If you keep up with your payments and do not incur any penalties you will be able to enjoy your car, and at the end of the loan period you will have secured an asset.You may also have improved your credit rating, which is important if you'd like to apply for credit elsewhere. Car finance is often the only way for people to own their own car, and there are some very reputable lenders and good deals to be found. Simply ensure that you know exactly what is involved with the loan you choose, and exactly how much it will cost you, whether you're applying for new car finance, or just car finance for an old car.


The clear disadvantage of taking car finance loan is that you will have to pay interest to the institution that is giving you the loan, so you will end up paying more for your car than it is actually worth, especially if you finance a new car. New cars depreciate immediately the moment you drive them off the car lot, so you will effectively be paying for value that your car no longer has. If your financial situation changes and you cannot keep up with payments, you might find yourself loosing your car, and any money you already paid on it. For this reason, car finance is a little risky. You can sometimes get insurance that will cover car payments if you happen to loose your job, however this insurance only covers you being dismissed and may not cover you if you choose to leave, or if circumstances force you to.