What a automotive mortgage prices you

It’s tempting to purchase a brand new automotive, be it an improve, a primary automotive or one other automotive for the household. Whatever the explanation, a automotive mortgage makes the acquisition simpler. 

Car loans are often of three to 5 years however some lenders could supply loans for as much as seven years. A mortgage for longer could imply smaller equated month-to-month instalments (EMIs), which makes the automotive appear extra inexpensive, however general, you pay extra as curiosity. 

Don’t neglect {that a} automotive is a depreciating asset, so taking a much bigger mortgage is probably not the very best factor to do. But when you take a automotive mortgage for a brief period, the EMIs shall be heavy and non-payment will imply a blot in your credit score report. 

Conditions apply to the mortgage quantity, too. For occasion, some lenders give a mortgage for the complete ex-showroom worth of the automotive, whereas others could supply a mortgage as much as 80%. Apart from the rate of interest on a automotive mortgage, additionally check out the relevant processing price and different expenses.

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(Graphic: Paras Jain/Mint)

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Updated: 09 Oct 2023, 10:14 AM IST