Various car financing options that you can go for this Diwali

Contd from previous post 

1. Regular EMI:

Here you pay your payments at the beginning or at the end of the month. Interest is the least here, it is fixed and is calculated over the entire tenure of repayment.

2. Step-up EMI:

In this option the amount of interest is higher than the first option. EMI increases as the repayment progresses. So if you think that your salary will increase in the coming years, but it’s just that you cannot afford a Skoda Octavia now you can go for this one. That way your initial payment s will be less. 

3. Step-down EMI:

In this option the EMI decreases as repayment progresses. So if you think of buying a car a few years before retirement this can be a good option.

4. Balloon EMI:

In this option you will be allowed to pay up to 20% of the principal at the end of the tenure of your loan. So suppose you buy a BMW today and in a few years you will retire, then you can pay a lump sum amount with your PF and gratuity. 

5. Special tie-up:

Here the financier has a tie up with the borrower’s bank. Whenever you have some extra cash in your bank account it will be used to repay your loan automatically. This will save you a lot of money in the long term. 

6. Lease and refinancing:

Now think you have taken a car, but you are paying monthly it’s lease charges. It is only at the end of repayment period that you will pay the current value.

So now depending on your financial situation you can decide which option to choose. Keep your eyes open before signing an agreement.

Last but not the least “Happy Driving”.

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