Posts Tagged ‘Prospective Buyer’
i put my car up for sale and a prospective buyer took it for a test drive and now i got a speeding fine. i have only a provisional license what do i do?
Bank car loans are regulated. This is the most important fact that you will ever take from this article. This is to say that the interest rate charged for the vehicle loan can only be so much annually and no more. This is not to say that banks will give you 100% on the value of the loan on a new or used car. Banks maintain extremely fair and precise actuarial tables and books listing the fair value of both brand new and used vehicles. They obtain the best market value and provide you financing for approximately 66% of the automobile’s cost to you, the buyer in the best cases. Their loan operations are excellent because they have the best information in the automobile industry. They have the certified blue books, which show the appraised value of every model of car made in the world. They also keep a close association with all the automobile dealers in town, throughout the state and sometimes out-of-state whenever Interstate commerce laws allow it.
Therefore your local bank has the best information on all the best bargains in used and new cars. It is certain that you won’t have to worry about getting a good deal if you have a good credit report. This insures your rating in the eyes of your bank bringing such benefits as lower interest rates and longer loans. Now this is the bright side of the coin, what I have to tell you next is the dark side of the car loan fable.
Throughout the city and state there are numerous used car sales lots. Many streets here in town are elbow to elbow with used car lots. They look attractive and their price tags seem just right. The prospective buyer should exercise extreme caution before financing a used car from any unknown automobile car lot. First, there are many used car dealers who charge outrageous interest rates on the cars they sell. They can do this because in our state, the state legislature has voted that used car dealers bear an extreme risk when financing any car from their inventory to a person with questionable credit. This is the “usury allowance” laws which have allowed bad car deals and legalized loan shark businesses to thrive throughout America. Our state isn’t the only one, where greed and avarice dwell you find similar programs. You see a car that really is the one for you.
Maybe your credit isn’t in such good shape so the bank can’t help as much as you wanted. The “Triple Nasty Car Dealership” offers you financing, free tags and sales tax on the car of your dreams. Only it becomes a nightmare quickly when you decide on a car you really can’t afford. The interest rates on your car payment far exceed what your license tag or sales tax. In fact you can be making payments of over a thousand dollars a month for a five year old vehicle. A young friend of mine, desperate for an automobile, bought a used car that she had to pay a weekly car loan payment. Her credit risk according to the car dealership, warranted a loan rate of 258%. The closing statement is this, make your car loan from a recognized bank and get a manageable rate. If you cannot finance from a bank, or a lending association carefully look into the repayment terms offered by the dealership. If they are exorbitant or too costly then don’t sign the loan papers, just walk away!
As people succeed in life and achieve new milestones, they reward themselves with better things and a quality life. Buying a car is one such thing that enables people to keep pace with the fast moving and highly tasking professional world . It is not necessary that a prospective buyer must have the entire amount to fund the car in his pocket. Based on certain conditions, banks in India are now willing extend loan to finance the major share of the car’s cost. Getting the dream car is now very easy as the interest rate is also cut by many banks.
In order to make the car loan deal more lucrative,in march 2008, State Bank of Bikaner and Jaipur, an associate of State Bank of India has reduced its interest rates by 1-1.5 % on car loans taken by state government employees. This finance facility is also available to the employees of major corporate houses. The new decreased interest rates are applicable on loans will be charged from first march 2008. For car loans of more than 7 lakh and a repayment period of 3 years, the interest rates have been slashed to 12% a year as compared to benchmark prime lending rate (PLR) of 13% for last year. For loans of less than 7 lakh with a repayment period of 3 years, there has been a 1.5% reduction in the payable interest rate.
If the repayment period of more than 3 years, the bank has reduced the rate of interest by 1% to 12% per annum. Keeping pace with the industry trend of decreasing interest rates, SBI has also reduced its interest rates by 0.25% on other loans also. The Finance Minister has recently advised the public sector banks to reduce its interest rates car loans and follow the example of SBI.
The car financing sector of Indian economy will be benefited a lot if there will be an uniform rate cut by different banks. This will not only give birth to a healthy competition, but also will increase the car sales in India. Apart from this, the banks should adopt different innovative strategies to attract the prospective imported car buyers. Though, these buyers constitute a smaller section, yet the habit of replacing the existing model for a new stylish one is more intense. In order to tap the unbound profit prospectives in this short segment, private banks like ICICI are now thinking seriously. Whatever may be the outcome, it can be told without any doubt that prospective car buyers are going to have golden days.