Most car buyers rely on a loan to finance their purchases. With the cost of vehicles increasing in recent years, planning the purchase in advance has become crucial, and applying for a loan is a step in the right direction. But it is only the first step. There are several things to consider before you make the decision. Here are some questions you must ask yourself.
Consider whether you can repay the loan easily. Can you handle the pressure of EMIs? Taking a very high-interest-rate loan can hamper your finances; if you already have other loans to pay, you might face a cash flow disruption. So don't rush the decision. It is best to clear off pending debts before applying for a new Car Loan. Consider your monthly expenses and be practical about your income before you make a move.
The interest rate has a major impact on your loan's EMIs. A strong credit score can help you negotiate better terms and secure a lower interest rate. Before finalising your loan, compare rates from different banks. You might even get a preferential rate if you have a long-standing relationship with your bank. A lower interest rate translates to lower EMIs, reducing your monthly expenses.
Many banks offer car loans covering the full cost of the vehicle. However, you can save more with a customised car loan. HDFC Bank's Car Loan with the Step-Up feature lets you start with lower EMIs than a standard loan, making it easier to afford a more expensive car while enjoying reduced monthly payments.
Buying a car is just the beginning; maintaining it involves ongoing costs. Before applying for a loan, assess whether you can handle the regular expenses of car ownership, such as servicing, repairs, and part replacements. The costs will vary based on the car model, so it's important to calculate these expenses and ensure they fit within your budget.
Pre-closure of a car loan means paying it off before the agreed term, which is a great achievement and can lead to significant interest savings. However, be aware that pre-closure might come with penalties that could affect your savings. To avoid surprises, check for any penalties and read the loan documents thoroughly before signing. This will help ensure you don't encounter unexpected costs and can fully enjoy your early debt repayment.
If the above features of a standard Car Loan prevent you from owning a car at affordable EMIs, you can opt for HDFC Bank Custom-Fit Car Loan, which offers a Step-up EMI scheme for a Car Loan. HDFC Bank Step-up EMI is an ideal solution for your budget as it allows repayment of the Car Loan in affordable EMIs. This helps you realise your future dream of owning a bigger, better car today.
The key advantage of this scheme is its recognition that your income is likely to increase over time, making the car more affordable as your earnings grow. With the Step-Up EMI option, you can secure a larger loan with lower initial EMIs, allowing you to drive away in the car of your dreams while managing payments comfortably.
So, let Onam be your auspicious reason to take a step closer to your dream car.
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Read more on how to buy a bigger car with a smaller EMI.
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Car Loan disbursal at the sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.