There has been a significant growth in the number of cars that have been bought with loans. According to reports, around 80% of the passenger vehicles and almost 100% of commercial vehicles in India are bought on loans. Experts believe that the stark increase in the number of financed cars during the pandemic could be because of the option to pick longer tenures and smaller cash down payments. But is that all? What are the benefits of choosing car finance? We might have something for you:
Savings remain intact
Individuals often choose to save up for years before they buy a car. However, financial institutions now lend a major share of the car price on loans, which makes it easier for consumers to pay a bare minimum amount as down payment and borrow the rest.
Not giving up on the entirety of your savings also helps you in investing the money in maintaining the car, emergency payments, and even repaying the loan amount or interest. It is always ideal to reserve a share of your savings, instead of draining out the accounts.
Makes the better car accessible
When you opt for car finance, you are not bound by the amount of cash you have. You can have a higher limit on the loan, which in turn increases the number of choices you have. You can choose a more fuel-efficient car or a luxurious car. A good quality car also has a good resale value which keeps up the streak of profits.
Financial institutions have a fixed amount for the monthly installments, based on the customer’s profile. This helps the customer in saving themselves in times of economic up-downs, fluctuation in interest rates and even the increase in car prices.
In many cases, financial institutions try to provide relief in taxes that are levied upon the purchase of a car. However, even if the lender is not providing such benefits, the customer can choose to take a larger amount as loan and use their savings to pay the taxes and registration fees.
A good credit score also goes a long way in getting you the perfect loan and the car of your dreams. Many financial institutions check your credit score to decide on the amount that you can borrow.
Kuwy understands buying a car is a dream-come-true moment for many of us and that’s why we are working day in and day out to provide you with a hassle-free, quick and easy car finance journey. Be it checking your credit score, selecting a suitable, pocket-friendly deal for you or verifying all your documents, the distance between you and your own car becomes shorter the moment you download the Kuwy app. So, what are you waiting for? Download the app or visit www.kuwy.in.