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Having driven your current car for a few years, you are now considering upgrading to a new vehicle. This gets you thinking about the value of your used car and the amount you can pay as the monthly installment towards the loan you might need for financing the new car. Take a step back as you may be moving too fast.
Are you thinking why? It may be a good option to continue driving your old car for a little longer. How? Well, you should use the car until you have been able to save the cash for making the purchase of your new car. Paying in cash for the purchase may be better because the lenders are able to make something almost out of nothing.
Keep your information confidential
When you do not apply for car loans, you will not be required to divulge confidential information about your credit rating and employment details. Moreover, you will not have to worry about qualifying for the amount needed to buy the new vehicle. Cash is king and you will not have to anxiously wait for receiving the approval from the lenders.
No monthly installments
Because you do not have to worry about making timely payments on your monthly installment, you can enjoy greater peace of mind. In addition, the money saved can be used for meeting some other expense or can go towards your savings for the future.
Eliminate additional worries
When you have taken car loans, you are constantly worrying about late payment charges, paying your bills, and other related expense issues. Many experts will tell you the best way to enjoy something nice is to pay cash when you have saved enough to make the full payment.
Many lenders have multiple hidden costs that are not immediately visible. These costs become visible when you get down to some serious number crunching. Individuals are advised to calculate the money you will pay if you opt for the loan instead of buying it for cash. Compare this amount to the earnings you could have made if you had invested this money. You should not be surprised to realize that you will end up giving much more when you choose to finance the purchase of your new car.
When you apply for car loans, you will have to undergo a long and tedious process. Firstly, borrowers must comply with a long documentation procedure. This is followed by a waiting period of 7 to 8 days to receive approval and then some more before the funds are actually disbursed. Users also need to pay processing and other fees to get approval for the loan. When you decide to buy the car by making full cash payment, you can get your car faster while enjoying cash discount offered by most of the reliable and reputed dealers.
No need to worry
Many borrowers will tell you that a few days after getting disbursement and taking delivery of the car, they received calls saying the interest rates have been hiked. This means they need to shell out more money or return the vehicle. This distress and larger burden can be easily eliminated when you pay cash.
There are some instances when you may need to acquire a loan to finance the new car. If you do not have the funds or are able to receive competitive interest rates, you may consider car loans. Otherwise getting loans on a depreciating asset does not make financial sense.
Know more about car loan and their interest rates at http://www.mahindrafinance.com/car-loans.aspx.
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