Factors which needs to be considered before opting for a car loan are
- The cost of the car based on make, model and colour.
- The amount and type of insurance cover you wish to opt for which is included in the costing of the car. (Only a few banks cover the insurance)
- The kind of car accessories you wish to purchase for your car which would ultimately increase the cost of the car. (Not all banks fund you for accessories).
- Initial down payment for the car, which is paid upfront by the buyer remainder of which will be the car loan amount.
- Percentage of financing available for the car depending on the make, model of the car and the borrowers repayment capacity. This aspect varies according to the lender/banks discretion. Some banks offer up to 90% financing for new cars.
- In case of purchase of second hand cars the amount of financing is largely dependent on the cars resale value and differs across banks/lending institutions.
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