Nowadays, a lot of people apply for an auto loan. Amongst them are those who don't have the money to pay the price of their favorite car as well as those who have the money but is building their credit at the moment. For all such people previously the only lending source was the traditional financial institutions like the banks and credit unions. Banks never entertain individuals who have a bad credit history since they fear these people will not be able to repay the lending amount at the end of the contract period. Banks term such individuals as 'high risk clients'.
Individuals with a bad credit have now found an alternative, lucrative car financing option in the form of auto dealers. Well, every city has a number of dealers offering loans to people desperately willing to buy a four-wheeler but don't have the necessary amount of money ready in hand. By paving the way for people to easily take auto loans, these dealers are actually increasing the chance of selling a greater number of cars within a specific time span.
Furthermore, these dealers have made it easier for the potential borrowers to calculate the EMI or Equated Monthly Installment by including an online auto loan calculator on their website. Such a device helps people insert the annual payable amount multiplied by 12 to get the EMI amount to be paid per month.
The advantages of using an online calculator are as follows:
Easy to Access Anytime –One of the primary benefits of an online calculator is its universal access, 24/7 from any region of the world. You just need to get access of the internet to open up a specific dealer's site to calculate your payable amount.
Helps Save Money –Potential customers can start collecting money from beforehand once they calculate exactly how much amount they need to repay every month.
Comparing the Rates –Different dealers charge different rate of interest on car loans. Some charges more while the rest charges less. Online auto loan calculator helps you easily compare the rates of the dealers to choose the one who is offering the most lucrative rate.
According to the retail automotive industry experts, the beginning of offering car loan to potential buyers have helped many dealerships see a significant increase in their car sales quota. Previously the sellers who had a bad business because of a poor sales figure are now seeing a sudden jump in their business because of the decision to offer auto loans to diverse people.
Advantages of taking loan from a car dealer:
- No Inspection of credit details – The dealer's office will never call you personally to ask you a series of questions related to your past or current employment history, your assets, bank balance, debt situation, etc.
- Quick approval – You apply for a car loan and get it approved within a week's time. It is that fast!
- Low rate of interest – Car buyers get loans against a small rate of interest to be payable each month on the lending amount.
- Low down payment – Usually all dealers ask for a low down payment with many going for a zero down payment offer.
