4 MinsJan 31, 2023
The New Year is a time for new beginnings and fresh starts. What better way to kick off the new year than with a brand-new car? A new car is not only a symbol of success, but it also offers improved reliability, better fuel efficiency, and updated
technology. Buying a new car can be an exciting process, but it can also be a little overwhelming, especially when it comes to financing. That's where a car loan is beneficial.
Car loan interest rate
Before taking a car loan, one of the first things to consider is the interest rate. The interest rate on a car loan can vary depending on several factors, such as your credit score, the duration of the loan, and the amount you're borrowing. Generally,
borrowers with high credit scores are offered low interest rates and vice versa.
The interest rate is not the only cost associated with a car loan. There may be other charges, such as origination fees, application fees and prepayment penalties. To get an accurate estimate of the total cost of a car loan, it is important to
look at the annual percentage rate (APR). This is the annual cost of the loan, including interest and other fees.
Use an EMI calculator
The EMI (equated monthly instalment) you have to pay is an essential consideration for a car loan. It includes the interest and the principal amount. Axis Bank's car loan EMI calculator can help you calculate the EMI based on the loan amount, interest rate and loan tenure.
You can adjust the loan amount and tenure as per your requirement and budget. This will also help you to decide on a car loan from a specific bank that can offer you the most affordable EMI.
[Also Read: How to Reduce Your Car Loan EMI]
Factors to consider before buying a new car
1. Make and model: You should research different models and compare their features. It is also a good idea to test drive the car to get a feel of its handling and performance.
2. Fuel efficiency: This is important if you'll be using the car for your daily commute. A fuel-efficient car can save you money on fuel over time. Be sure to research the car's fuel efficiency rating and compare it to other models.
3. Overall cost: The cost of a new car can vary depending on the model, trim level and additional features. Ensure getting an estimate of the overall cost, including the purchase price, sales tax, registration fees and insurance.
4. Safety features: Safety is an important consideration when buying a new car. You should look into the car's safety ratings and features such as airbags, anti-lock brakes and electronic stability control.
5. Resale value: Consider the resale value of the car you're interested in buying. Some cars hold their value better than others, and this could affect the amount of money you'll get when you decide to sell the car in the future.
6. Warranty: Check the warranty offered by the manufacturer and make sure you're comfortable with the terms and conditions of the warranty. You should also research the reliability of the brand so that you can get an idea of how
likely the car is to require repairs or maintenance over time.
7. Financing: If you're planning on financing your new car, check the car loan interest rate, fees and overall cost of the loan. This will help you determine
the best financing option for you.
Buying a new car can be a big investment. With the help of a car loan, it can be a more manageable process. Before taking a car loan, look at the interest rate and EMI and choose a car that will be reliable and cost-effective over time. Additionally,
don't forget to check the used car loans and new car loans offered by Axis Bank.
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.