The most important thing that has to be decided before one
begins to start looking for the car, one wants to buy, is that he should find
out how much can he pay for repaying the installments of the car loan i.e., how
much is affordable for him. He should prepare a budget, which gives him the
maximum limit, to which he can spend on buying a car. For preparing such a
budget, he needs to analyze all different car loans that are available in the
market, their rates, interests and also the details about the lenders should be
double checked for the purpose of security. Being pre-equipped with a budget,
one knows his limit, which helps him to choose the car that suits his budget the best.
Monthly expenses of the car- The repayment installment of
the car should not exceed more than 20% of the income, remaining after meeting
all the necessary expenses of the month. Not only the part of income saved has
to be used for repaying the installment but also other expenses related to the
car has to be met, like fuel, licensing fee and other petty expenses of the
car. Also, the saved income should be sufficient to pay for the sales tax,
registration, after the expenses mentioned above are met.
Conditions of disbursement of auto loans- usually the terms
of auto loans differ from each other. Different lenders providing auto loans,
provide such loans on different terms for repayment, different interest rates
and also different time limits for repayment. But generally what happens is
that, 10% of the loan is paid as down payment and then rates are fixed.
Usually, rates on loans, with zero down payments, are much higher. To reduce
the rate, one can actually pay back the loan amount in short period of time.
Lenders of car loans- loans for buying cars are available
not only from banks but there are hundreds of institutions providing such loans
to the interested consumers of such loans. There are many companies, who
indulge themselves in providing such loans, which is way of extra-earning for
them. Apart from all theses sources, the most popular one is the one where the
online lenders provide loans for buying cars. These companies offer quotations,
on request, absolutely free of cost, and give the opportunity to compare
different quotations from different online lenders and select the best
alternative. People with bad credit can also avail of such loans, from the
options available to them.