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Affording your dream car: A guide to luxury Car Loans

3 min read Aug 2, 2023


Buying a luxury car can be a dream come true. But one of the reasons why luxury cars are so expensive is because they are so technologically advanced and have the most premium features.

The truth is that luxury cars are just as easy to use as any other car. All you need to do is equip yourself with some knowledge, and you are ready to take them for a spin.

Steps to choose the best Car Loan:

1. Start by assessing your financial situation and determining how much you can afford to spend on a luxury car. This will help you narrow your options and choose the best Car Loan that fits your budget.

2. Research various Car Loan options available in the market. Look for banks and financial institutions specialising in luxury Car Loans, as they may offer more favourable terms and interest rates.

3. Compare the terms and conditions of luxury Car Loan options, including interest rates, loan amount and repayment period. Consider factors like down payment, processing fees and prepayment charges.

4. Check your credit score and credit history before applying for a Car Loan. A good credit score can help you negotiate better terms and lower car loan interest rates. You can also use Axis Bank’s car loan EMI calculator.

5. Read the fine print carefully and understand the terms and conditions of the loan agreement before signing. Look for hidden charges and penalties that may affect your repayment.

Financing options for luxury cars

  • Dealership financing: Many luxury car dealerships offer financing options to customers looking to purchase high-end vehicles. Dealership financing can be convenient but may come with higher interest rates and additional charges.
  • Bank loans: Banks and financial institutions offer luxury Car Loans specially designed for high-end vehicles. These loans typically come with lower interest rates and favourable terms.
  • Co-operative banks: Co-operative banks may offer lower interest rates and more flexible repayment options than traditional banks on luxury Car Loans. However, several membership requirements may apply.
  • Online lenders: Online lenders offer a convenient way to apply for a luxury Car Loan from the comfort of your home. However, they may come with higher interest rates and stricter eligibility criteria.

A guide to making your dream exotic car financing a reality

  • Consider leasing: Leasing an exotic car can be a more affordable option than buying one outright. Leasing allows you to enjoy the benefits of driving an exotic car without the high upfront cost.
  • Explore financing options: Many banks and financial institutions offer exotic car financing options especially designed for high-end vehicles. These loans typically come with lower interest rates and more favourable terms than standard Car Loans.
  • Check your credit score and history: A good credit score can help you qualify for better financing options and lower interest rates. Before applying for exotic car financing, check your credit score and take steps to improve it if necessary.
  • Consider a co-signer: If you have a poor credit score or limited credit history, you may ask a family member or friend to co-sign on your loan. A co-signer with a good credit score can help you qualify for better financing options.

Axis Bank offers a variety of Car Loans to cater to your diverse needs. If you plan to buy a new car, you can apply for a new Car Loan with a minimum loan amount of ₹1 lakh, with up to 100% on-road funding and a maximum tenure of up to 7 years.

Also Read: [Six points to keep in mind while taking a loan for a new car]


If you're considering purchasing a luxury car, many financing options are available to help make your dream a reality. By comparing the best Car Loans, understanding your options for luxury Car Loans, and working with a lender specialising in car financing, you can upgrade your lifestyle without busting your budget.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision