Advantages and disadvantages of Car Loans
Like every coin has its two sides, everything in this world has a positive and a negative side attached to it. It is upto an individual to decide what proves to be heavy while applying for a car loan.
Advantages of Car Loan
- Car loan make sit possible for you to own a car that was much awaited. Your dream car !!!
- With a huge number of car loan dealers prevailing in the market it is possible for you to get the best deal which will make your car owing dream as sweet as a chocolate cake.
- If you can pay a heavy amount as down payment your rate of interest will automatically shoot down drastically.
- Incase you do not possess any property which can be used as collateral security then you can avial an option of unsecured car loan. This option is used by many tenants and students as well.
- The reapyments can be done by Equated Monthly Installmen ts better known as EMI which is convient as per your infow of funds.
Disadvantages of Car Loan
- A secured type of a car loan may lead to loss of your asset if in case you are unable to repay the loan amount.
- Like other loans here to there is a danger of getting into a viscious circle of debt.
- If you desire to take the option of prepayment of loan to get rid of EMI’s but many tomes the lender does not approve and therefore he levies the clause of fine for carrying out prepayment of your car loan.