For most of the people a car is an essential commodity, and for some a symbol of class, right? But, all in all, it has become a crucial part of our lives now. For instance, enabling transport from point A to B at any given point of time, a car is now a staple among all sections of the society. If stats and reports are to be believed, per capita income has been increased across the spectrum in India. And, that’s why people have started spending more on vehicles.
With the new millennium generation, the automobile industries are pouring high-end luxury cars in the market. So, if you are planning to take a loan to buy a new car, you must have searched the lending market for various suitable car loans. And, have digested the fact that the lenders can lend or fund up to 80% of your vehicle’s cost. And, what if you don’t have the remaining 20% ready to fund? In that scenario, you can consider borrowing the best personal loans instead of a car loan. For some to borrow a car loan to buy a car, or to opt for a personal loan to buy a car, it’s a debatable discussion as it depends upon a lot of factors, let’s go through it-
As mentioned above, if you opt for a car loan instead of personal loan, you will get only 80% of your vehicle cost, however, with best personal loans you can secure up to 100% of your car’s cost. So, if you are running a shortage of funds to pay 20% of your car’s cost, you can opt for this financial product rather than a car loan.
Well, who would like to pay heavy interest on the borrowed money? The money you borrow through a car loan can only be used to purchase a car; however, if you opt for best personal loans you can spend that money not only on buying a car but on other things as well on which you might have your eyes on.
We all know that a car loan is a secured loan, and your car won’t be bought or transferred to your name until you settle down all of its installments. In addition to this, you have to make the on-spot down payment since your car loan is not 100% financed. And, if there are 100% financing car loans in the market, their interest rates are higher. On the other side, if you finance your car through easy personal loans, you get the ownership of your car immediately without making any down-payment from your end.
Best personal loans and car loans has a relatively dissimilar range when it comes to loan tenure. Well, personal loans usually range from 1-4 years while car loans usually range from 2-8 years. Longer tenure simply means lower EMI amount and higher interest rate, and on the other hand, shorter loan tenure means higher EMI amount and lesser interest rates. When it comes to buying the car through easy personal loans or a car loan, you would obviously love to settle the debt as soon as possible, right? So, if you decide to opt for personal loans to buy a car, you can avail for a shorter tenure to limit the outgoing interest.
Well, to decide whether to avail easy personal loans or a car loan to buy your prized possession, you can consider some other factors like- your ideal interest rate, loan tenure, EMI amount and ideal loan principal loan amount. And for this, you can scour the internet to avail the best deal, so that everything runs in the best possible direction just like your new prized possession- car. Hope this information has been helpful!