5 Reasons Why You Definitely Need A Car Loan

By BankBazaar | May 22, 2019

If you’ve been thinking of getting a car for the longest time but don’t have the cash for it, take a chill pill! Here are five reasons why you should get yourself a Car Loan!

5 Reasons Why You Definitely Need A Car Loan

Are you sick and tired of arguing with grumpy autorickshaw drivers or waiting for your cab to show up when you’re already late to work? Well, it’s probably time you did something about it, and by that, we mean getting yourself a new set of wheels.

What’s that? You can’t afford a new car you say? Well, we’re here to tell you that by taking out a Car Loan you can land the car you’ve always wanted and ride away into the sunset. But if you’re apprehensive about taking out a loan to buy a car, well you have nothing to worry about. In fact, we’ll give five reasons why you definitely should do so.

Here we go:

  • Low Interest Rates

Taking out a Car Loan isn’t really an expensive affair. The interest rates are generally low and you can choose your repayment tenure, which can last up to seven years. This makes it easy to make monthly repayments towards the loan, which will, in turn, make it light on your pocket. In fact, you can even negotiate the rate of interest, especially if your Credit Score is good and you’re a loyal customer of the bank you’re applying for the loan with.

Additional Reading: What To Do If You Can’t Repay Your Car Loan

  • You Don’t Require Collateral

The cool thing about getting a Car Loan is that you don’t have to provide any collateral to get the loan. The bank will consider the car you buy as security. This means that if you can’t pay back your loan, the bank can possess the car and sell it to get back the loan amount. So you don’t have to worry about putting up any of your assets as security.

  • No More Haggling Or Waiting

No more will you have to argue with auto drivers who try and haggle you out of your hard-earned money nor will you have to wait endlessly for the cab you booked to come pick you up. In fact, you’ll save money in the long run by getting a car of your own, especially if you depend on cabs or autos to commute every day.

In short, you won’t be at the mercy of someone else to get you from place to place. It’s all about being your own boss, at least as far as transportation is concerned.

  • Road Trips

We’re pretty sure you’ve thought about heading out on road trips with your friends or family multiple times but you just haven’t had the means to do it. Well, you can put certainly put paid to that with a Car Loan.

Think about it! You head out for a weekend getaway with your posse in tow as you motor down the highway with the wind in your hair. Sounds fantastic right? You bet it is. Your dreams of becoming the king of the road will finally come to fruition.

  • Your Credit Score Will Improve

And last but certainly not the least, by taking out a Car Loan and making monthly repayments consistently on time every time, you’ll see your Credit Score shoot up before you know it. This can be especially beneficial if you have a low to moderate Credit Score and are looking to ramp it up.

Not just that, by making consistent monthly repayments, you will build your creditworthiness as well, which will make it easier to avail more loans in the future. After all, banks and lenders don’t just give out loans to just anybody. They need to be sure that you are good with credit and you intend to pay back the money you borrowed. And what better way to show them that you’re a worthy borrower than by building a positive credit history?

Additional Reading: Here’s Why Your Credit Score Is Still In The Dumps

There you have it! If that doesn’t convince you, nothing will. So, the next time you’re sweltering out in the heat waiting for your cab or commuting in a jam-packed bus, remember there’s a Car Loan out there with your name on it just waiting for you to come get it.

If you’re looking for other great financial products then you’ve come to the right place. We have tons of offers tailor-made just for you.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Money Management

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