Advantages of car loans
No Waiting: – no waiting for your savings to grow up to the cost of the car.
Tax Benefit: – Government provides a tax benefit on your income tax if you are paying a car loan.
Flexible EMIs:- You can choose the amount of EMIs yourself according to which your loan repayment tenure will be adjusted
No collateral required:- if you have a good credit history you can have a car loan without any security or collateral. The car itself will act as collateral.
Disadvantages of car loans
Interest: – If you take a car loan it will cost you a little more than its price, but its nothing compared to joy of owning a car.
If you take car loan then you can’t sell the car until the full loan amount is settled.
If you want to settle the loan before agreed time then you will have to pay prepayment penalty which can be 0% to 2% of the total loan amount.