Gone are the days when buying a car was the luxury only the rich could afford. Today every person who wishes to own a car can do so very easily. All he needs to have is steady income and the will to buy. Car finance has made this possible. Car financing is done by numerous agencies but the best of them all is taking a loan from a bank. Today banks all over the world are offering various schemes for car buyers along with many additional benefits because it is tough competitive market where the borrower is the king.
Many banks have a tie up with the car dealers whereby a customer is offered car finance at the car showroom itself. But in most cases the buyer approaches his own bank for finance beforehand. Many banks also offer lower rates of interest to their own customers. Bank car finances are most preferred modes because a bank definitely has a more stable standing in a market and acquiring a loan from a bank puts an individual at ease because he is sure that he will get a good bargain. Moreover bank lending rates are set and less expensive as compared to the rates offered by dealers and they don’t force compulsory add-ons like life insurance etc on the borrowers.
Once a bank has been zeroed on, and necessary negotiations worked out, necessary documents need to be handed over to the bank such as proof of residence, income statement, photo identity etc. also till such time the loan is paid up the car is registered in the name of the bank financing it and once the loan has been completely paid the registration is transferred in the name of the car owner. This is done to protect the interest of the financing bank. Many banks collect post dated checks from the borrowers for the entire amount spread over the number of installments which has been agreed upon between the parties.
There are many banks which come up with many attractive annual offers for car finances thus making them more lucrative and tempting many would be car owners to go ahead to realize their dream of owning a car of their choice without worrying about the payment options. Even people from the lower strata of the society can today afford a vehicle of their own thanks to the simple and easy availability bank car finance.