New Car Loans

You want to own that new car in the market under your name. But it costs very high and hence demands taking a loan. Well, new car loans are especially crafted loans for people who are looking for financial help to buy a dream new car of any make and model.Usually New Car Loans are secured loans as huge money of the lender is involved in it. New car is highly priced and so you are mostly likely to borrow greater amount. So the lender would like you to pledge your home or any valued property as collateral. The new car it self can be placed as collateral under which the lender takes deal papers of the car in his possession and returns them only when you have fully paid the loan back.With a plethora of auto loan opportunities available in India these days, it is now possible for you to buy your dream car within a matter of days. No need to save up money for making complete down payment at the time of buying. Just gather enough amount for the initial payment and pay the rest in easy installments, by taking up a loan. The best part about auto financing is that, apart from the new cars, loans are available for old cars as well. After you have decided to take an auto loan, check out the various finance schemes available in the market. After undertaking a thorough research of each and every scheme, you will need to pick the one that suits you the most, in terms of interest rate, monthly installments, duration, and so on. The size of the loan will depend upon the cost of the vehicle and its type (standard or premium), along with the percentage financing you want or are being offered.

It is on the value of the property that the lender will give you a loan amount. But the lender will not approve you an amount that is higher than the value of the car. So first of all you should find out the car value. Collateral ensures that you get new car loan at lower interest rate so that you do not have any problem in repaying the loan installments in time. New car loans are approved for a shorter period of repayment. You are supposed to repay the loan fully in 5 to 7 years. This is because the value of the car will go down after a certain period. You are also required to make a down payment for taking the loan.
If your credit history is less than perfect as you have late payments, payment defaults, arrears or county court judgments, still you can avail new car loans just on convincing the lender that you are now in a better position of repaying the loan. Your income, employment and bank documents are thus crucial in the loan approval.