A car loan can turn your wish of owning a car into a reality by providing you with the necessary funds upfront. Instead of waiting years to save up, a car loan allows you to purchase the car you desire and pay for it in manageable monthly instalments. This financing option opens up a wider range of vehicles to choose from, including newer models or those with advanced features, which may have been otherwise out of reach. You can also look at used car models that fit within your budget and solve the purpose of owning a car. With a car loan, you can enjoy the benefits of your car sooner while spreading the cost over a period that suits your budget.
However, choosing the right tenure for your car loan is crucial, as it can significantly impact your monthly payments and overall financial burden. Bajaj Finance offers you both new car finance and used car loans, to get you closer to owning the car you always wanted. Let us look at the tenure options for both:
Loan product |
Minimum tenure |
Maximum tenure |
12 months |
96 months |
|
12 months |
84 months |
So, how do you choose the tenure that suits you best?
Here are some key factors to consider when deciding on the loan tenure
- Monthly budget: Determine how much you can comfortably afford to pay each month. A longer tenure will result in lower monthly payments but higher overall interest costs.
- Total interest paid: Shorter tenures generally have lower total interest costs, but they come with higher monthly payments. Calculate the total interest payable for different tenures to make an informed decision.
- Loan amount: The amount you borrow also affects your choice of tenure. Higher loan amounts might necessitate longer tenures to manage the monthly payments.
- Resale value: Consider the expected resale value of the car. If you plan to sell the car before the loan tenure ends, a shorter tenure might be more suitable.
- Financial goals: Align the tenure with your financial goals. A longer tenure may free up cash flow for other investments or expenses, while a shorter tenure can help you pay off the loan faster.
- Credit score: A longer tenure might be necessary if you have a lower credit score, as it can result in lower monthly payments.
Evaluate these factors carefully to choose a car loan tenure that fits your financial situation and goals. Now that you know about the different types of tenure options and how to choose the one that suits you best, you can apply for the car loan as per your requirements.
