It goes without saying that in today’s Pakistan owning a car is no longer a luxury but a necessity. Auto Loan / Car Financing is a standard product offered by most banks, for both new and used cards. The first and the most important decision you make when opting for an Auto Loan /Car Financing is realizing the maximum cost you can comfortably afford, since this is a long term commitment of up to 7 years. You need to ensure that you can comfortably afford the monthly payment of the Auto Loan, in addition to fuel and maintenance expenses. What percentage of income you want to set aside for Car Financing will be a personal decision based on your household income and expenses.
Eligibility for Auto Loan / Car Financing varies from one bank to the other. However a basic framework of eligibility is as follows:
Every bank has their own set of internal policies which govern what documentation is required for Auto Loan / Car Financing, below are a few items common to all banks:
When you are browsing for an Auto Loan / Car Financing, you will have to visit branches, call the call centers or go through a sales agent to collect information. This process requires a fair bit of time and effort. Moreover, you will have to do this multiple times to form a comparison and select the best deal for your Auto Loan / Car Financing. Comparebanks.com provides you with all the information you need about Auto Loans / Car Financing in one window – quick and reliable information.
A critical piece of information in deciding which car you can afford is what the monthly payment for your Auto Loan / Car Financing would be.With comparebanks.com, you can quickly calculate how much your monthly payment will be. You will also be able to easily identify which bank is offering you the Auto Loan with the cheapest monthly payment. However, before you decide to pick the cheapest monthly payment loan, be sure to read our FAQ section!
When you opt for a Auto Loan / Car Financing on a new vehicle, please keep in mind that the vehicle registration cost is not included in the financing amount. Similarly for used vehicles transfer of registration cost is not included in the financing amount.
Whether you’ve taken a Auto Loan for a new or a used car, banks require you to insure the car. Some banks have relationships with insurance companies to provide special rates to their customers. Please keep in mind that this is also an upfront payment for one full year, which is not included in your monthly payments or loan amount, after which the next year insurance is charged in monthly installments.
Trackers are devices that track your vehicle using GPS. All insurance companies offer their services with and without trackers. Some banks require you to have an insurance policy that has a tracker as well.
Let’s say you’ve secured a 7 year Auto Loan / Car Financing. Approaching the second year, you get a bonus from your office or an unexpected profit in your business and decide to pay off your car loan earlier. Banks typically charge a certain percentage to allow you to pay off your loan before its tenure or duration is over. If you feel such a situation may arise in your Auto Loan agreement, please ensure you know what that early settlement charges are.
All you need to do is use our Car Loan Calculator, select your car, and select the bank you would like to hear from. We’ll have them call you.
Of course you can. Please see the Car Loan Eligibility Criteria (hyper link to section)
That depends on your total monthly income and if you are availing any other loan facilities from any bank. Most banks will finance up to 85% of your car value. However this will vary from bank to bank and the type of vehicle.
The period of your car loan can range from 1 year to 7 years.
Your initial payment includes the following;
Your contribution towards the value of the car
1st year insurance premium
Typically you have to pay up one or more of the following charges depending on whether you are taking a Car Loan on a new or a used car:
All banks have relationships with insurance companies to provide special rates to their customers.
The Car Loan is paid through regular monthly payments for the duration / tenure you have opted for.
Yes, this is called Early Settlement. Usually the bank will charge you some percentage interest / profit for early settlement.
These documents are listed on our Documentation section.
The first year insurance premium is taken upfront and the 2nd year insurance is taken in 12 equal installments starting from the first month.
Trackers are used by banks to protect the car against theft, some bank use this to restrict movement of the vehicles to certain high risk areas.
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