| Nobody from the middle class can afford to pay the | | | | of 100 per cent finance, the interest rate is the highest. |
| entire cash at a time to buy a car. At most one can | | | | 2. The type of loan you are taking: unsecured or |
| pay some upfront payment and get the rest of the | | | | secured. Auto loan rates are less for the secured |
| amount financed by someone. The amount of upfront | | | | loans as you place some collateral. For unsecured |
| depends upon the type of loan you are taking. This | | | | loans, the rates are a bit higher than that of secured |
| means that there are several kinds of auto loans rates | | | | loans. For unsecured loans, you do not place any |
| available: both on the internet as well as with your local | | | | collateral as such. |
| banker. | | | | 3. The tenure of the loan: When you take a short term |
| While there are limited options available with your local | | | | loan, the interest is applied to the loan amount and then |
| banker, you can find an unlimited number of schemes | | | | is distributed into equal parts. As the number of parts is |
| with the money lenders operating on the internet. You | | | | less, you get to pay higher installments but then you |
| can check out the different schemes of each lender | | | | save on the interest. In contrast, a higher rate of |
| and then zero in on to the best scheme. The auto | | | | interest is applied to longer period. The advantage is |
| loans rates vary from lender to lender and within the | | | | that though the interest rate is high, you get to pay |
| different schemes available with the lender. You can | | | | lower amount as installment. |
| ask for a quotation or else you can use the free loan | | | | To save you the headache of calculations, many |
| calculator available on most websites. | | | | websites offer loan calculators so you can yourself |
| The loan rates depend on the following factors: | | | | calculate the different installments for different |
| 1. The amount you are getting financed. This excludes | | | | schemes and different loan amounts. |
| any upfront payment you are willing to make. In case | | | | |