Car Finance

Have you been thinking about the car of your dreams for years now but you just can’t purchase it because you are still short of cash? You don’t have to wait any further because there are lots of car financing options available in the market nowadays.

Car financing enables you to purchase and own your dream car without having to wait until you save the needed funds to pay for the car outright. You can always pay an amount now for a down payment and pay the rest in installments. However, you have to be careful when choosing the company to conduct your transaction with. One aspect that you should carefully look into is their car financing rate package.

If you are looking for Rates which are really low, you always have the Option of going Online and checking Car Financing Companies Online. In comparison to other Car Financing Companies, they are able to offer lower Rates. This is possible only because of the fact that when the Online Companies do business with customers Online, they are able to save a lot. This proves to be more effective than most personal transactions. You are able to make out the details of the offers that they are giving when you go through the contents of their website. In this process, their time and effort to explain the terms and conditions are saved. These savings which are results of online transactions they pass on to you as you are a customer to them.
You might get confused to know how to get the best Car Financing Option. However, you are able to get the best Deal for purchasing your car provided you have the patience and determination to compare the Rates of Car Financing that the different Car Financing Companies are offering.

A credit score is comprised of many factors, including past and present payment histories, credit balances in relation to available credit, and the amount of credit available. The reason why it is important to keep a high credit score is because it is these people who are offered the best interest rates. The 0% financing offers which are so widely publicized by dealerships are actually only available to a minority of buyers whose credit is immaculate. Everyone else gets offered a higher interest rate, and, for some with poor credit, these rates can be up into the double digits.

New car interest rates below the table

Banks	Tenure	Margin	Processing Fee	Interest Rate
ABN Amro	3 years	10%-30%	Rs 500- Rs 1000	15.0
Allahabad Bank	3 years	15%	For Salaried Persons: Nil, For Others: 1% of loan amount, minimum Rs 2,000/-	12.25-11.75
Andhra Bank	3 years	10%	Rs 250- Rs 1000	13.5
Axis Bank	3 years	15%	NA	16.5-12.5
Bank of Baroda	3 years	15%	0.50%	11.25
Bank of India	3 years	30%	1.10% of the loan amount Min. Rs.750/-, Max. Rs.2500/-	11.0
Bank of Maharashtra	3 years	10%	Rs 2000/-	10.75
Canara Bank	3 years	10%	0.1% on the loan amount with a minimum of Rs.250/- and maximum of Rs.500/-	12.5
Catholic Syrian Bank	3 years	20%	0.25% of loan amount, minimum Rs 250	14.75
Central Bank of India	3 years	15%	1%	11.25
Dena Bank	3 years	20%	Rs 500	12.25
Federal Bank	3 years	10%	NA	14.25
HDFC Bank	3 years	0%	NA	14.0
ICICI Bank	3 years	5%	NA	14.25
Indian Bank	3 years	10%	NA	12.0
Indian Overseas Bank	3 years	10%	upto Rs. 2 lakh- Rs. 134/-, above Rs. 2 lakh- Rs. 134/- per Rs. 1 lakh	13.25
Karnataka Bank	3 years	15%	0.25%	13.0
Oriental Bank of Commerce	3 years	15%	0.50%	11.75
Punjab National Bank	3 years	20%	0.50%	12.5-12.0
SBI Bank	3 years	15%	0.50% of Loan amount and to be paid upfront Minimum: Rs. 500/- Maximum Rs. 10000, 25% of Processing fee will be ratained if application is rejected after pre-sanction survey	12.0
State Bank of Mysore	3 years	15%-30%	NA	12.5
UCO Bank	3 years	25% or Rs 7.5 lakh whichever is lower	1%	13.0
Union Bank of India	3 years	20%	Rs 500 - Rs 1000	12.25
Vijaya Bank	3 years	20%	NA	12.25

The interest rate is the most important factor for Car Finance. The total Amount of Repayment depends on the Rate of Interest, whether it is high or low, and the length of the Repayment term. Car Finance Interest Rates vary from Dealer to Dealer. Interest Rates range from 9% to 30% which is dependent on your credit history and how old the car is. The Rates should be compared first before you are going to choose your Dealer because the Interest Rate affects the total Amount of your Car Loan immensely.