Be it to buy your first ever new car or a pre-owned one, car loans interest rates differ from person to person based on their financial profile. Considering owning a car is one of the biggest purchases you will make, it’s vital to understand the factors that influence its price. Going digital is one of the easiest ways to eliminate middlemen and gain faster approvals as well as better loan offers.
Here are three major factors that determine your car loan interest rates.
One of the major factors determining car loan interest rates is your annual income. A salaried person shows a steady flow of income and is often considered to be more reliable towards timely payments over a self-employed applicant. Furthermore, a registered business owner has better chances for lenient loan rates as compared to a freelancer.
While it’s no news that your credit score plays a big role in deciding your interest rate, lenders provide a lot more perks on car loans than say personal loans. They tend to focus more on your income and ability to pay with less emphasis on your credit history. An average score of 700 should be good enough, however, it may vary from lender to lender.
The math is simple. The longer the tenure, the more interest you pay. Average terms range from 32 months to 72 months. Keeping the loan term short would mean paying a higher sum every month. One needs to keep a balance and fix this tenure wisely, so that you can conveniently pay the monthly installment without a miss and wrap up the loan in a shorter span with minimal interest.
While a steady income, decent credit score and a flexible tenure is the basics to get your car loan, we take all the stress off your shoulders with a hassle-free lenient car loan lending process. With a verified list of lenders and dealers willing to offer deals to customers from all walks of life, we at Kuwy, understand what buying a car truly means to you. Head on to kuwy.in to know more.