Facts You Never Knew About Car Loan Down Payments

Value appreciation and depreciation are two important factors one must keep in mind while investing one’s money in any asset. Assets such as cars and bikes are depreciable assets and thus one must ensure a sizable down payment. For example, if you buy a car of Rs 10 lakh and the loan tenure is 5 years with an interest calculated at 12%, one would be required to pay Rs 13.30 lakh as the loan repayment amount which would be the principal and interest amount. That makes it an excess of Rs 3.30 lakh for a car worth Rs 10 lakh. Where the actual difference amount is more if taken into consideration the resale value of the car. If one wishes to sell the same car after 5 years the recoverable amount would at the most 60% of the purchase value if not less. Let us consider Rs 6 lakh as the resale value of a car valued at Rs 10 lakh at the time of purchase and which may now only cost about Rs 8 lakh in the market considering price depreciation since launch of the car model. In which case, the figure of Rs 6 lakh as well seems overrated. Well, the actual amount you are paying for the car over and above the value is approximately Rs 8 lakh which is Rs 3.5 lakh plus the depreciated value. Now that is a big amount, isn’t it?

The best car loans in India in 2015 would be those which can offer you 100 percent on-road cost of the car, but at the same time allow you to make the maximum down payment so as to save on the inflated interest amount.

Getting A Car Loan In India

The procedure for getting a car loan in India is similar to other loans available, wherein a person is required to submit the required documents of identity proof, address proof and bank account statements.

The Benefits Of Availing A Car Loan

One can avail loans on a wide range of car models available in India. May it be a sedan or hatchback or a multi-utility vehicle. The vehicle type is not restricted. The loan has a flexible loan repayment tenure, which in some banks is as long as 6 years, while you may avail a car loan of up to 6 times one’s yearly income. You can check your car loan eligibility within a minute and about the possibility of its approval within 30 minutes. The best car loans in India in 2015 would offer you pocket friendly EMI repayment options at a reasonable rate of interest as well.