123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Insurance >> View Article

How To Manage Your Car Loan

By Author: Mihir Yande
Total Articles: 12
Comment this article

Owning a car is no longer just a status symbol. It has become one of the essentials of the modern life. It is no wonder that the demand for car loans has increased in the last few years. With more and more luxurious cars entering the market every year, our dream car keeps changing. As such, when we set out to purchase our first car, we end up making the mistake of not planning our finances adequately before we take out the loan. However, this loan is a big financial investment which is why it is important to know how to manage your car loan and pay it off easily.

Choose the right down payment amount: Making a small down payment is one of the most common mistakes that most borrowers make. While one may see several cash saving benefits initially, a small down-payment isn’t always helpful in the long-term. Your small down payment amount automatically affects the interest rate, loan tenure and the payable EMIs. Instead of opting for a minimum down payment amount, it is better to make a larger down payment on your auto loan if possible. Doing this reduces the quantum of the auto loan, and helps you save on the total interest payable in the duration of the loan. While this seems like a large expense in the beginning, it proves beneficial in the long term.

Be clear about interest rates, tenure and EMIs: Whether you choose to take a NBFC loan or a bank loan for car, you need to be clear about interest rates and payable EMIs. A low interest rate may seem tempting, but it may not necessarily be the best idea. Instead of blindly signing up for a loan, it is recommended that you do some research. You can estimate the overall expenses, including different interest rates across various tenures by using an online tool called a car loan EMI calculator. Furthermore, you should choose a loan tenure that does not put a strain on your budget, instead of opting for the longest tenure, just because it is available. Remember that a longer tenure means you have a longer debt period. The EMI calculator helps you in planning your tenures and gives you the proper estimate of the total repayment amount, thus reducing future financial burdens.

Consolidating debt: If you are also paying off some loans (e.g. personal loan, credit card loan), you may find it difficult to manage this new loan. Consolidating your debt enables you to turn all your other loans into a single, large loan. It allows you to pay off all the loans in just a single EMI every month. You can thus, conveniently pay off the EMI instead of keeping track for of various due dates. It further makes the process of repaying all the loans, including the car loan, very easy and reduces your chances of missing the payments on the due dates.

About the author: Parag Mishra is a passionate automobile writer. His research and review provide us information on how to manage auto loan.

Total Views: 73Word Count: 511See All articles From Author

Add Comment

Insurance Articles

1. Factors To Consider Before Buying A Health Insurance Policy In Switzerland
Author: Anna

2. Reasons Why Your Casual Music Lessons At Home Need Insurance Too!
Author: victor12johnson

3. Six Ways To Keep Health Insurance Affordable
Author: Anna Ruth

4. Personal Accident Insurance Singapore
Author: Personal Accident Insurance Singapore

5. Effective Ways To Reduce Premium Of Swiss Health Insurance
Author: Anna Ruth

6. 3 Reasons You Should Invest In Security Guard Insurance
Author: Jake Wintczak

7. Seven Reasons To Buy A Health Insurance Policy
Author: Anna Ruth

8. Choosing The Right Music Insurance Company Is Crucial
Author: victor12johnson

9. Personal Loan – Features And Benefits Explained!
Author: Anujit Bhattachaarya

10. What Is Insurance & How Many Types Of Insurance?
Author: Ken Adams

11. Top Five Health Insurance Comparison Sites In Switzerland
Author: Anna Ruth

12. Recommended Insurance For Taverns That Owners Should Have
Author: Jake Wintczak

13. Secure Your Musical Instrument Business With Music Dealer Insurance
Author: victor12johnson

14. Why You Need Insurance For Auto Repair Shops
Author: Jake Wintczak

15. How To Get Cheap Sr22 Insurance?
Author: SR22insurancenow

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: