Purchasing Car Under Finance? – Know More
There are times when Indian families considered the four-wheeled car as a prestigious icon as limited options available in the market. They kept them for an extended number of years as they had to pull up hard arrange extra finances towards the purchase of the car. Needless to mention the fact that purchase of the car was an option for loyal families. This scenario is no more prevalent with a boom in car loan sector. Number of a new car that fits in every price- point have rushed into the market. Most importantly, a rise in the disposable income has increased the awareness of the car buyers. As a number of new car models rush into the market from time to time and it is not uncommon to see the people selling the car under finance.
Loan for financed cars
Car loan in India has wider scope. The lenders sanction the loan for purchasing a new car, used car and car under finance too. There are many branches that extend the loan for buying cars under finance. It is up to the discretion of the borrower whether to continue to pay off the with the existing lender or approach a new lender and pay off the existing loan with the help of car loan refinancing. It all depends on comparing multitude benefits offered by the lenders.
What to look for?
When you are looking purchase a car under finance, it is important to check the registration book. You should also check if the hypothecation on the car is still valid. If no, getting it done will be an additional cost for you on purchasing the car. You should take these additional expenses into consideration while taking an auto loan.
Loan to be paid off
You should speak to the lender to whom the car is under finance. This helps you to know the auto finance that is yet to be paid off. This is some key information if you are looking to purchase a vehicle under finance because you will stand responsible for paying off the rest of loan from now on.
If you don’t want to continue your car loan with the current lender for any reason, you can ask your seller to foreclose the loan. In this process the seller will close the loan far before the loan is due for the payment, this will give the seller an option to choose the lender of his choice and get an auto finance at a low-interest rate.
If you are looking to purchase a car under finance to save few bucks of money, breath little easy in a knowledge that It does not seem as difficult as you think.