All your dreams of owning a new car are going to come true with the car loan. Choose the car you want to buy, and you will get a suitable car loan to own it. When you apply for car loan, not only do you get to choose the EMI plan, but you also get to avail exciting repayment plans and a grace period to pay back conveniently.
Though the price of a new car can be huge or even beyond your budget, you can still make it yours with the help of a loan. Compromise and complexity both are reducing with time. Today, online process of loan application is gaining much popularity over the traditional process of going back and forth to the bank. With tech integration, car loan online can be availed paperless without having to go through countless meetings with bank professionals and all.
Reasons to opt for a car loan
There are several benefits of opting for a loan to buy a new car. Those are:
- Pay according to your convenience
You do not have to shell out the entire sum rather with the EMI option, you can breakdown the selling price of the car. With automated systems, every month a part of the EMI is automatically transferred to the lender accounts.
- Manage finances efficiently
All you have to do is, pay the down payment initially, and then you can go on to plan the EMI breakdown. You can accordingly plan your monthly expenses keeping in mind the EMI without having to compromise on other necessary expenses.
- Do not settle for anything lesser than what you want
Buying a new car is not as simple as it sounds. When the market is buzzing with plenty of exciting & branded car models, it does get somewhat difficult to pick one. If the car you want is exceeding your set budget, you can still opt for the same with a car loan by dividing your EMI proportionally to your income and expenses.
- Enjoy life in the fast lane
Car loans make it possible for everyone to buy a 4-wheeler irrespective of the cost associated. When you go onto evaluate your monthly traveling expenses compared to the EMI’s you have to pay, there is not much difference when you are constantly on a move.
- Automatically improves your credit score
One of the most underrated benefits of car loans is that successful repayment boosts your credit score. Every month, your credit score receives a positive score to add up to the existing score. These only paves way for better loan availability for the future.
Apart from the reasons, you should also know the important factors that can influence your car purchase.
Essential things to know before applying for a car loan
There are 13 important things that you should keep in mind while applying for a car loan:
- Fix budget
- Select the car
- Focus on desired car specifications
- Calculate the resale value of the car
- Research properly
- Calculate the Total Cost of Ownership
- Plan other finances
- Focus on Credit Score
- Go for a test drive
- Focus on the total amount rather than EMI
- Exclude the add-ons
- Can avoid and extended warranty
- Get an inspection done for a pre-owned car
However, the most important thing among these factors is the credit score on which you need to work upon to get a car loan approval and also to buy a car.
Why is a credit score important when buying a car?
Credit score determines the loan features and if you are going to get a loan sanctioned by the lender. It is determined over a period evaluating financial history, bank statement, your income besides other parameters. The minimum credit score required to get a loan is 750. A CIBIL score between 750 to 900 is considered a good score. You can check your credit score online and avail paperless loans without any hassle.
Just like credit score, the loan application procedure has also been simplified. Now, you do not have to reach out to the bank officials when you need information or assistance or travel to different banks to look out for the best loans for your requirement. All you have to know or access for a successful loan application is apply for a car loan online at Droom Credit and get loan decision within 30 seconds. So, get going to enjoy your life in the fast lane, and find out the best car loan for you.