Car Tuning,Car Finance,Auto Loans

Archive for June, 2007

Car insurance and finance are the two key elements of the Indian car industry. In the present day, many buyers find the used car market very lucrative and so the insurance and finance of second hand cars.

Insurance is mandatory for all cars running on Indian roads and almost 90% of the car buyers take finance to ease financial burden to a certain extent. So, when it comes to buying a car, the first thing that comes to picture is finance and then is the insurance.

Car insurance is attributed to factors like model, make, cubic capacity, type of engine, estimated cost of premium accessories, and power of the engine. When it comes to buying a used car, almost 75% of the value is insured by the insurance companies. This drastically reduces the insurance premium.

Today in the market, all the certified used car dealers like Toyota U Trust, Hyundai Advantage, Honda Auto Terrace, and Mahindra First Choice have tie-ups with the insurance companies and agents to provide a hassle free insurance service to all the buyers. Even the agents and other companies dealing into used cars have tie-ups with insurance companies.

Apart from that, there are used cars that are already insured by the original owner of the car. In such cases, the insurance policy is directly transferred to the second hand car buyer within 14 days after the transfer of car ownership.

When it comes to used car finance, it reduces the burden on the buyer’s budget and also offers an excellent deal. The important components include market value of the used car, warranty, breakdown coverage, and the age of the car. Depending on these factors, the finance providers offer almost 80-85% of the second hand car value in the market.

The ease of easy finance availability helps the buyers to break their overall payment into several small and convenient payments that can be paid as EMI (Easy Monthly Installments) every month. Though it is one of the best source of income to buy a dream car but then too the buyer should keep in mind his or her monthly income. He or she should also consider the actual amount he or she can free from income every month without hampering his recurring expenses. Buyer’s recurring expenses, saving amount, and the EMI should be well-calculated in advance so that no problem occurs in the future and the buyer can comfortably pay the monthly payments without being pressurized.

Also make a thorough study of the finance options available in the market. Dealers or agents will definitely push you more as they have their own commission in helping you get the finance deal. So, think twice before signing any deal or else directly approach a reputed and trustworthy bank.

Above all, do check the ins and outs of the used car before buying the finance for that particular car. Ensure that the used car does not prove to be heavy on your pockets and burden on your hearts.

Cars are typically the second most expensive purchase for consumers in the UK. This is why many people opt to purchase their Cars on Finance instead of paying a full up-front payment.

What is car finance?

Car finance is basically a loan; you would normally have to pay a deposit which is a percentage of the overall cost of the car. The rest is paid off by a car finance company; the buyer is obliged to sign a loan agreement document agreeing to pay a certain amount every month until the loan is fully paid off.

How to get car finance

There are various ways however, if you make your application directly with a finance company they may offer you a loan of a specific amount and then you would have to find a car that matches that price. When all relevant checks have been carried out, the finance company would transfer the funds to the car company and you can drive away. When organising your funds through the dealer the whole transaction can be handled in one visit, – quote, application, documentation and then drive away.

What do you need to get car finance?

Purchasing Cars on Finance requires the following:

- Good credit rating

- No CCJ’s Defaults

- Full time verifiable employment

- Current Account

- Deposit

- Proof of address dated within the last three months

- Bank statements

- Address history from the past five years

- Proof of employment

- Proof of salary (Last three months wage slips)

- Photo ID such as passport and or Full UK driver’s license

You may need more or less depending on the finance company.

How much can you borrow?

How much you can borrow really is dependent on how much money you have coming in on a monthly basis. It will also depend on your outgoings as this will determine how much you can afford to pay back and over what period of time. It is never advisable to opt for a car that is so high in price that you will be unable to afford the repayments. One other factor that will determine how much you can borrow is the amount of money you have available to put down as a deposit.

Once you have been accepted for the loan you must make sure that you keep up with monthly repayments. Failure to pay could result in the car being repossessed and it will affect your good credit rating. All financial behaviour is recorded by credit reference agencies; therefore it is a good idea to make sure that you have available funds every month to make the repayments.

Buying Cars on Finance is an option if you want to buy a particular vehicle but do not have the funds readily available to pay upfront. Car finance gives you the opportunity to spread the cost over a period of time therefore giving you the option to purchase a car that you might not have been able to afford without the help of a loan.

In other to obtain good and quality car loan, online shopping is advisable. Online shopping could be done through the internet and it is known to be the best means in getting an auto loan. Online shopping is recommended as the safest means of obtaining cheap car quotes.

With online shopping, you have so many benefits like getting quick answers to your questions, not running around searching for the best auto loan quotes, making transactions without an agent or going to any financial institution for enquiries. You could get approvals for your application in nothing less than 48hours.

Below are ways in which you can obtain accurate and sufficient loan for your car. You try to consider the amount needed for your choice of car; try to know the amount for the insurance of your car, price of fueling the car and also the car registration cost then add it all up to make up the amount you would loan.

If you have gotten the right figure you need then the next step to follow is getting an auto loan quotes. Many loan providers have their website where you can go, get different quotes, compare and select the best loan provider. The Auto loan quotes are FREE.

To avoid an increased interest, it is better to have something you will present as a substitute for the loan. After doing all this you find out that it is stress free and easy. Another important thing to note is that applying for an auto loan your credit record must be in a good state. That is, if you have any outstanding bills you need to settle to regain your financial status it is best you do it because your loan provider always considers your credit value. They want to be sure if the loan given will be repaid.

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