In the last five to six years there has been a complete shift in the market dynamics, with an increasing number of people affording expensive assets. One such domain is the automobile industry be it the two-wheelers or the four-wheelers. People with steady income proof can apply for a loan and based on the ratios of income to EMI payback they are provided finance for the vehicle of their choice.
Most car dealers have a tie-up with banks and finance companies that are ready to lend money to prospective car owners. Such tie ups help speed up the loan providing process. Apart from car loans there are also the car insurance schemes. In fact, as part of the discount packages the car dealers and other sellers provide free insurance schemes. This is another boon provided to car buyers.
Today, car loans & insurance has become a part of the car buying deal. However, insurance for second hand cars is more difficult to get, and is not provided by the dealer. Also, the EMI per lakh on a second hand car is Rs. 3,000. This is more than what one pays for a brand new car. And the loans are more easily available on the brand new cars.
(The figures given here is an average, it varies according to various factors, such as tenure and down payment amount, amongst others)
Links to information on loans and insurance:
http://sify.com/finance/loans/
This pages contains links to technical information about car loans and insurance
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