Are high interest rates in the car loans segment spoiling your plans for a new car? Has the recent hike in price of cars dented all plans to purchase a big car? Is the hike in fuel prices drilling a hole in your pocket?
Sadly, this seems more of a red light than a speed bump. If conditions in the Indian market remain unaltered, not much is going to change in the near future for the car industry. However, it’s not something to worry about. We talked to certain bankers and advisers, and they have given alternative solutions to these problems, in order to ensure a smooth ride on this bouncy road. So sit back, buckle up and read on what to do now. Try out car loans, but keep the duration short
For Indians, car loans can prove a great saviour. With so many international companies coming to India, and Indian companies buying out international car makers, the future in cars seems bright. However, car loans are an individual’s choice and might not work for everybody.
Normally as a consumer, we can get tempted to go for long-term loans, offering a lesser rate of interest. This can generally happen when we are in two minds to upgrade to a luxury car when we would normally buy a C-segment car. Bankers have a word of advise for people: try to keep your loan term short.
On this matter ICICI bank group head (car & commercial vehicle loans) Ravi Narayanan opines, "Would interest rates increase further or would decrease in the future? No one can predict, at such a time its better to go for a 3-4 year loan, rather than settling for a fixed loan that goes upto 6-7 years."