With loan available for almost everything, life has become hassle free. Indeed, at least that is what you think about it. So, whether it is your dream abode, your aspiration to avail the fastest vehicle on four wheels, that exotic vacation are no more just dreams. However, if you intend to avail them, all you need are the right documentations, valid applicability features and good knowledge! Indeed the right knowledge of a particular product is of significance. This is highly applicable when you aspire to take the loan for your car.
Other than the significant aspect, of interest rate and the company you are planning to avail car loan from, the tenure is of importance too. First and foremost, you need to understand that car loan is not the best thing happening to you. It is because the value of a car depreciates faster as compared to that of the principal amount. Hence, try to avoid it. You should try to keep the loan amount as low as possible. Similarly, you are required to purchase the one with less tenure.
Most of these instances there are two tenures applicable for individuals, the first one is 5 years and the second one is 7 years. When you have to compare the 5 or 7 year slots, it is always best to go with the 7 years. If you are thinking that by taking the 7 year slot, you will be able to lower the burden on EMI, think again.
When you are pursuing lower burden on EMI with the 7 year slot, rather than the 5 year one, you end up paying more interest. It is also important for you to understand, that it is not just the EMI which you will be required to take into account, there will be the cost of fuel and the regular maintenance of the car as well applicable.
Hence, think smartly and then take the loan. It should be an aid and not a continuous headache which lingers on. It is best to talk or take suggestion from your financial advisor to come into a well thought of decision.