Loans are the most commonly used form of financing used cars. Hence, we must know all the aspects of loans for maximum profits. Many dealers offer us eye-catching deals for loans and we might land in a place of uncertainty, this blog can assist in clearing your mind regarding the best time to borrow money.
Firstly, a car loan should be avoided if it eats 30-40% of your annual income, repaying the money can become quite a headache. So, it is better to plan our monthly expenditures and to take a loan that is only 10-12% of your annual income. Moreover, this gives us breathing space for other credits and EMI. Secondly, it is better to take a loan when we have some money to pay as a down payment rather than to take a full loan. The overall sum paid for a full loan is much higher.
Year-end i.e. December is the best time to take loans for cars and it is also the best time to buy cars. Car companies usually come up with lucrative deals on loans as they are forced to meet their year-end sales. Having a good relationship with individuals from the loan sector can give us better deals as they have a personal motto to get better ratings. Additionally, the chances of getting our desired models and variants with free accessories are more as companies look forward to clearing their stocks. For used cars, in case we take a loan, cars which are just 16 months old can be considered as they can be as beneficial as a new car.
During December, the APR( Annual Percentage rate) is the least and the APR during January is the highest. The lowest APR means the repayment cost can be saved up to some extent. While APRs change monthly, the fluctuation also depends on the auto market and should not be assumed for sure. Similarly, the MSRP (Manufacturer's suggested retail price) discounts are highest in December.
KUWY for all your Loan Problems
HDFC has offered a special deal for auto loans this new year. They have 100% financing on selected vehicles along with pocket-friendly EMIs, and health cover. On the other hand, ICICI has offered tenures of up to 7 years. But, why wait till the new year to take a loan? Kuwy offers a wide range of lender dealer options digitally with deals every day of the year. Healthy credit maintenance also generates rewards (such as high loan values) from Kuwy.
Kuwy uses advanced technologies such as AI, ML and Deep learning for a digital loan process.
Three segments of people,
- Customers- They can find the right lenders with certified vehicles, access to credit, best loan terms, digital verification, faster delivery, digital documentation, paper transfers, and faster payments.
- Lenders- They can attract the right customers with benefits such as paper transfer, loan stack, vehicle certification, instant eligibility, digital verification, digital documentation, and location coverage.
- Dealers can have access to pre-approved customers and the same benefits as lenders.
Loans are a significant decision in someone’s life and it is important to borrow money from trustworthy lenders. Kuwy offers lucrative loans option with hassle-free digital documents.
Happy and fun learning!