Getting a car is like making a long term investment. It surely is going to pay you back, if not in the form of cash, then in the form of its services. It is going to cut the transportation costs and above all, providing you a luxurious, comfortable and ergonomic way to go from Point A to Point B. But the question that arises is if it is fine to invest such a huge amount in cash at the time of buying? Is it risky? Or should you even do it if you have an option of car finance?
Even the base model of a car is of no less than Rs. 2 lakhs. Giving such an amount directly to the dealer and driving away your car might seem a great option, but it has mixed reviews! Some might think that car finance is a better option, but both has its merits and demerits. Still, car financing in India is more common than to buy car for cash! A few good points that you experience while you buy a car for cash:
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You can avail for some extra discounts and benefits if you tell the dealer that you are going to pay the whole amount right away. The dealer might give you a good discount or can even put in some extra goodies.
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You won’t have to pay interest of any sort. It would be a little high investment, but in a way, it would be saving your money and cutting the cost on your pocket.
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Another major benefit when you buy a car for cash is God forbid, if you have a poor financial condition abruptly developing in your house, like a member getting out of job for a prolonged duration thus making loss of an earning hand, in this scenario, you won’t have to keep on paying the instalments to the bank. And if the condition worsens, you can sell your car at any time, if you are the right owner of it and have already paid in cash for it!
Despite of these benefits, there are a few people who cannot afford sparing too much money at any moment. This is the reason why car financing in India is that common and Indians don’t prefer to buy cars for cash. The car finance techniques ask for proper knowledge about the monthly instalments and interest rates. Various car finance calculators are available online that might help you in calculating the ideal amount that you will spend each month and the down payments. Car finance interest rates are also of question and you might need to choose the best time of the year to avail maximum benefits that you can get while getting a car finance!
