Since the late 80's there has been a gradual change in the scenario and post-liberalization of the Indian economy; the middle-class family are chasing to buy a new car. Further, the number of models available at various price points rapidly increased.
Cars are purchased for both platforms, i.e., commercial and for personal use. Various sectors provide easy availability of cars on finance options for purchasing vehicles from banks and non-banks to cater to different profiles and segments of car buyers; there has been an exponential increase in car sales, most of which are financed.
Here are some features of car on finance:
Availing a car loan from the manufacturer itself brings many benefits for the buyers; the following are some features and benefits.
- Streamlined loan processing- Most car manufacturers have a streamlined process where the loan application and processing are made on a tight timeline. This process is effective and enables fast approval.
- Easy documentation- The documentation for availing car finance is simple and easy. The manufacturer checks the borrower's ability and evidence in the form of a document to ascertain your steady income.
- Quantum of the loan- For in-house brands, the manufacturer offers funding up to 100% of the car value. Customers can also get customized car loans based on their needs or requirements.
- Tenure- The repayment period varies from lender to lender. However, it generally ranges between 1 to 7 years. The borrower can choose the comfortable term within the available tenure.
- Prepayment- The borrowers can also prepay the loan. The terms vary from lender to lender. Some lenders do allow you to prepay whenever you can. Charges may be applicable for prepaying your auto loan and varies for different lenders.
What is a Rent to buy cars no deposit?
Rent-to-own vehicles are known as lease-to-own cars, but it's not the same as traditional leasing. With a rent-to-own vehicle, you take possession of a car and make weekly or monthly payments for a predetermined time. Once you make the final payment, you can keep your car. If you stop making payments, the lender can repossess the vehicle, and you lose the money you have paid until that point. Many consumers who have a low credit rating take advantage of rent-to-own vehicles because they seldom require a credit check and look past poor credit history. But that doesn't mean that these deals are your best bet for a bad credit car loan. One of these options is a bad credit auto loan for a new or used vehicle with a competitive interest rate and an affordable monthly payment.
What are rent-to-own cars?
Rent-to-own cars are vehicles that you rent for an agreed-upon amount of time, make payment on, and can purchase at the end of them. Here are some things to keep in mind:
- No credit check on rent to own cars- Own Rent traders don't generally run credit checks, allowing people with bad credit to finance a car as long as they make a certified income.
- Vehicle selection- Rent to own car isn't associated with new car dealerships; you'll find the vehicle selection will generally be limited to older used models.
- Down payment requirement- You'll be required to put money down on a rent-to-own vehicle. Make sure you budget for one and ask the dealer how much you'll need.
- Lack of a warranty- Most rent-to-own cars won't come with a warranty unless you purchased a used car.