For salaried, it's a depreciating asset with no tax benefit
Car loans are usually of around seven years, but some lenders offer loans for up to 10 years
A long-tenured loan means smaller equated monthly instalments (EMIs), which may make the car seem more affordable. But you end up paying more interest
A car is a depreciating asset. Taking a bigger loan may not be the best thing to do unless you are a business owner who is buying the vehicle for office use
While a salaried person doesn't get any tax benefit on a car loan, a business owner can deduct the interest paid when filing returns
In any loan, it's advisable to make as much down payment as possible. A higher contribution from the borrower reduces the need to take a huge loan. This will allow him to opt for either a lower EMI or a lower tenure
When purchasing a car, many buyers go for the lender that has a partnership with the dealer. Avoid it
These lenders charge a higher interest rate, which allows them to offer a hefty commission to the dealer. Compare rates online before you finalise the lender
Sometimes a dealer may offer a discount on the car value if you take a loan from its partner lender
Sometimes a manufacturer may tie up with a lender and offer discounts to push up the sales. Again, compare your total interest outgo in this case with other lenders
When evaluating an auto loan, check whether the lender is giving a loan based on the 'ex-showroom' or the 'on-road' price. Typically, lenders offer 95-100 per cent financing on the ex-showroom price