Car purchase: Why the end of the year is the perfect time purchase an automobile

If you are looking to purchase an automobile, you will be surprised to know that making a purchase at the right time will also go a long way to save you funds. While festive times are known to be the ideal time to make an automobile purchase, the end of the year is another time to purchase a car.

There is a reason to this statement. The final weeks of December are unique to the car business. Not only is it the end of the month, but it is also the end of the quarter, as well as the end of the year. This means, manufactures will be looking to boost their sales numbers, while dealers will be working extra hard to meet their quotas. It is during this time of the year, you will get access to the best incentives, such as low APR financing and cash back rebates. And this is not only restricted to the new car, but also the used car.

Here are few reasons as to why the end of the year may be a great time for you to make a car purchase with a loan:

Lenders are approving fewer bad credit card loans: According to the latest auto reports, lenders are reducing the amount of car loan approvals, with subprime credit. In other words, even if your credit score is at an acceptable score, you may not get and the approval for a car loan you want. This is because, lenders are tightening up on bad credit card loans. They are approving fewer loans, while ensuring that they are more careful about how these loans are being structured, while following stricter credit standards. So if you have the ideal credit score, you have a higher chance of being approved for the loan. You can even use the car loan calculator to calculate how much of a loan you can expect with your current credit score.

Interest rates are on the rise in the next year: While lenders may be tightening up the loan structures, interest rates tend to go on the rise. Even a 0.25% increase will go a long way to increase your loan repayment. Anytime the interest rates rises, consumers can expect lenders to raise the rates and charge their customers accordingly. However, the silver lining about this fact, is that the interest rates normally rise after the new years has passed. Therefore, this an ideal warning for those who want to opt for a car loan, to opt for a loan now and lock in the rates that are low. You can even use the car loan calculator to your advantage and see how much of the loan rates can benefit you.

Why should you opt to buy a new car with a car loan?

Purchasing a car comes with a choice of purchasing a new car or an old one. No doubt, purchasing a new car offers a bigger and better investment regarding money. With a new car, every aspect of the vehicle will be new, where automakers will use the latest advancements in technology and engineering.
A used car will offer a bigger gamble, on the other hand. Not only will it be a few years old, but it will also lack specific equipment which you would want in your new vehicle. No doubt, each type of car will offer you several benefits, but when it comes to purchasing an automobile with a car loan, you will need to make a decision based primarily on your financial requirements.

Here is what you can get from purchasing a new car, with an auto loan today:

Reliability: While the exteriors and interiors will always be the preference for most automobile shoppers, the second preference would be reliability. Not only is this an ideal option, but also a practical one, as a new car will be more reliable to a used car. The definition of reliability in a brand new car will include design, user experience and expectation of operation. It would also include downright component failure. In other words, a car owner will look for the most simple and least complex car as the best choice.

Safety: When it comes to safety, several car manufacturers have made it their priority. They have incorporated stringent safety standards, to ensure that only the best and safest cars are produced in the country. This includes government norms, crash test safety regulators and upgraded safety features. With a car loan, you can now purchase a car with the best of safety advantages compared to the used car.

Warranty: Most auto manufacturers used to lure customers with the promise of post-sales services such as warranty. In other words, if your car breaks down, or fails to work in terms of what the manufacturer offered, you can get it replaced, at no cost of your own funds. In addition to this, post-sale, there will be several reasons as to why you would want to purchase additional products or services, wherein which, the warranty will cover these additions at a smaller expenditure. All these expenditures are covered by the auto loan which makes it easier for you to manage it financially.

Fuel Economy: Most automobile manufacturers are now advancing their research and development, focusing on new cars to meet international standards. One of these standards includes returning a high mileage and cleaner fuel, for lesser or zero emission. In this case, several models are formed to include mild hybrids, a start/stop system, and cylinder deactivation technologies. It also includes lightweight materials and streamlined designs, which goes a long way to increasing the fuel efficiency of the car.
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Why opting for personal loan EMIs will minimize your financial risks

If you have any financial requirement, a loan will be the ideal option to satisfy it. In most cases, the personal loan proves to be the most appropriate choice, as it offers a financial flexibility as compared to other loan options. Not only can you use the funds from the loan for miscellaneous requirements, but you also have the financial flexibility to opt for a loan amount that will satisfy your requirement in a stress free manner.

However, like any other loan, you also need to also consider the repayment strategy. In addition to paying off the borrowed funds, you will also need to pay additional funds, such as the processing fee and the interest rate. Keeping all these factors in mind, you will need to ensure that you have sufficient funds to repay back the funds, without incurring additional debts. This is where the EMI’s come into place. With the right EMI amount, you can pay off the funds you need to, in a convenient manner, and yet enjoy the remainder of your income for other financial purposes.

By using the personal loan EMI calculator, you can calculate the ideal EMI amount that will help reduce any financial risks. Here is how it can benefit you:

You opt for interest rates that are flexible: One of the main concerns about the personal loan, is the interest rate. Since the personal loan is an unsecured loan, the interest rates tend to be high. This would mean high EMI’s and shorter tenures. However, you can always use the personal loan EMI calculator to calculate the ideal EMI’s that will not only suit your needs, but also ensure that you have sufficient funds remaining for other financial requirements.

You can make your budget less stressing during the repayment tenure: Paying off a loan, is as good as paying off a debt. However, you don’t have to make this debt into burden while compromising on your monthly expenditures. You only need to plan your budget in accordance with the tenure of the loan. This can be easily done with the EMI calculator for personal loan. While you can calculate the ideal amount with this calculator, it will also allow you to get an idea of how much of a tenure it will take to repay back the borrowed funds, along with additional expenditures. In this way, you can make your budget less stressful during the repayment tenure.

Protect your credit score in the long run: While the financial risks are high for any loan, including the personal loan, the first factor that will get affected is your credit score. Your credit score is one aspect that will affect further financial applications, especially if you will be applying for loans in the future. Why ensuring a fixed repayment budget, along with flexible loan rates, you can ensure that your credit score remains unaffected during the repayment tenure. At the same time, appropriate repayment in a timely fashion will help boost your score. Hence, using aEMI calculator for personal loanwill go a long way to protect your credit score and help improve it.
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Personal loans: Money making reasons why should you apply for one

Anytime a financial requirement arises, there are plenty options you can consider in order to appease this prerequisite. One of these options includes the loan. Under this category itself, there are plenty of loan options which you can opt for, one of which is the personal loan.

Unlike the other loans, the personal loan offers a financial flexibility for your requirements. In other words, you can use the funds from the loan for any miscellaneous option, with a few restrictions. Additionally you can easily apply for personal loan online without any stress and rush that comes with other loans. Here are some of the money making reasons as to why you should opt for this loan:

Paying down a higher interest debt: Everyone is bound to have one debt or another at some point in their lives. At this time, the amount of debts can overwhelm an individual. But by paying off multiple debts with a single amount can prove to be financially viable. For one, you would only need to focus on one debt instead of multiple ones. Debt consolidation will allow you to congregate multiple liabilities with several interest rates and repayment terms under one single roof. This will go a long way to pay down your debt, but also ease off some of your expenditures too. You can use the surplus expenditure to invest in other means to earn an extra income.

Pay off education expenses:If you are looking to further your education, a personal loan will be one of the best uses of your money. No doubt, your first thought would be to an education loan. However, this loan normally comes with certain restrictions and at times, will be larger than the personal loan amount itself. Additionally, with no credit history, you may not get the loan amount you would ideally want for your education expenses. At the same time, if you are earning and studying at the same time, you can utilize the time spent, by studying and earning at the same time. This will ensure that you get to earn the amount that you would have lost if you spent time only studying. Through this, you need not compromise on your financial expenditures and yet have sufficient funds to pay off a loan.

Flexible funding for your business:It is a common knowledge, that most business have a chance of failing within the first two years. Research has also indicated that it can stop functioning within the first 10 years. One of the main reasons for this failure is lack of cash flow. Finding funding for your business can be as challenging as starting your business itself. Not only would you need to wait for the ideal profit amount, a limited paper trail will make it difficult for start-ups to qualify for conventional business loans. But since you can easily apply for personal loan online there is no worry about the business’s current credit history before moving ahead to start your business.
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All you need to know about the different types of loans

Everyone understand the basics of a loan. Through this financial assistance, you can easily borrow funds you require and repay it back within a given time. However, there is more to this financial product than borrowing funds.

No doubt, you will be aware of the factors of the loan such as the interest rate and the tenure. But are you aware that the value of these elements differs from type to type? Additionally, some loans require a particular type of collateral, while others may not. Do you also know that some types of loans can only be used for particular reasons? Given below are some of the different type of bank loans which you need to know:
Secured Loans: A secured loan can be obtained by borrowing funds against an asset you own.

These assets form a collateral in your loan application. They can include your home, your vehicle and event your fixed deposits. The amount you received as a loan will depend on the value of the collateral. Additionally, since your providing collateral for security sake, the interest that is provided with the loan is low. With this, you can submit more than one collateral for certain types of loans. However, you should know that, if you ever default on your loans, your lender will get the borrowed funds back by foreclosing on the collaterals provided. But the best advantage of this type of financial assistance is the fact that you can use your credit score as a means to negotiate for a higher rate. The higher the score, the more of a bargaining power you will have, in terms of theloan amount and repayment tenure.

Given below are some of the instances of secured loans:

Car loans
Bike loans
Mortgages
Business loans

Unsecured Loans: Unsecured loans are a complete contrast to the secured loan. As the name suggests, they are not secured against any assets. They are also flexible in terms of using the finances gained for any miscellaneous financial expenditures, with a few exceptions. However, they are also difficult to apply for and maintain. This isdue to the fact that lenders will first confer your credit history along with your current income, asset and debts at the time of your loan application. Once your profile is deemed appropriate, you can get theloan you want. However, with these types of bank loans lenders will charge a higher interest rate, to compensate for the risks associated the lending of funds. Additionally, certain products will also have a short tenure.

Here are some of the examples of unsecured loans:
Personal loans
Personal lines of credit
Student loans
Banking cards and department sponsored cards.
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What are the financial products you need to invest in to secure your future?

If you have started to earn and contented about your finances, there are several reasons why you should be concerned. In failing to invest in the appropriate investments and policies, plenty of individuals will lose out several financial advantages, in terms of better premium rates and tax exemptions.

However, that is not all there to know about it. You will feel the pinch when you reach your 40’s, where lack of savings and proper investments will lead to financial vulnerability as your expenses will rise. To avoid such a potential situation, here are a few financial products you need to invest in:

Life insurance: The first product you need to invest in is life insurance, especially if you have dependants. With a life insurance policy in place, your family will be financially protected, in the event of your demise. For the best and financially flexible insurance option, you can opt for term insurance. To ensure that your family gets enough funds to compensate for the loss of income through your death, opt for a high sum. You can calculate the sum based on your requirements, potential rise in prices, day to day expenses and goal amounts.

Health insurance: Afterlife insurance, your health insurance is the next important investment. Statistics have indicated that India’s medical inflation is higher than the global average. No debt investment will pay your more than this figure. Therefore, once you have begun paying for your loans, you will need a financial protection against hefty medical bills. While health insurance will protect you during a medical emergency, in the long run it will help protect your savings in the long run. Opt for an insured sum that is enough for you and your family, based on your lifestyle, health and family medical history.

Recurring deposit: You need to create a recurring depositwith your bank, especially in the bank where your income is being deposited. In this way, you can end up saving each month. This will also stop you from spending everything that you are c earning, leading to a steady saving. Additionally, it will help you manage your budget better, allowing you to invest in other investment options. You can even increase the amount you invest in each consecutive year.

PPF account: Like the recurring deposit, the PPF will give you plenty of benefits on investment, especially when it comes to tax benefits. You can first claim deductions under Section 80C for contributions. Secondly, the interest you earn on income is tax-free. Lastly, the lump sum you receive at the end of the tenure is also tax-free. All in all, by investing an amount of Rs. 1.5 lakh per year, you can save at most roughly Rs. 47.86 lakhs over a period of 15 years.
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How can you avoid TDS on your fixed deposits?

Amongst the different financial products available in the market the fixed deposit is one of the most popular options. For one, you can invest a large and fixed amount for a fixed duration. You also get a return on investment at quarterly, half yearly or yearly tenures. At the same time, your investments will be kept well protected against the volatile conditions of the market, as the rates are locked in at the time of investment. To get the ideal investment option, you can always use the fixed deposit calculatorto calculate the ideal amount that you would require.
But while this investment offers you the ideal returns, there is one factor that will put a crimp into your investment. The interest you earn on your bank fixed deposits is fully taxable under the tax deducted at the source (TDS) scheme. Under this, banks are liable to deduct TDS at the rate of 10% on the interest earned, especially if the interest earned is more than Rs. 10,000. Additionally, if you do not submit your permanent account number (PAN) with the bank, you are liable for a deduction at a rate of 20%. The only way to claim the TDS deduction is by filing an IT return and waiting for your refund to be deposited back.
In order to avoid getting into such a situation as this one, you can incorporate the following steps to avoid TDS:
Submit form 15G or 15H: The first step you can take to avoid the TDS, is by submitting Form 15G/15H with the bank. Depositors whose total interest earned for the year is below the exemption limit along with total tax payable for the year is zero, can submit these forms to avoid TDS. These forms are self – declaration forms, that can be submitted by an individual stating that his or her income is lower than the taxable limit. Form 15G is normally provided for individuals below the age of 60. Similarly, form 15H is for individuals above the age of 60.
Distribute your investments across banks: As per the TDS policy, if your interest income exceeds more than Rs 10,000 you are liable for TDS. This will only occur if you have invested a high amount in a single or multiple fixed deposits in a single bank. Thus to reduce your income earned you can invest in multiple banks. You can use the fixed deposit calculator to calculate the ideal amount that will offer you the highest return, and yet avoid being in the TDS bracket.

Time your investments: Another alternate option you can consider is the interest that is being deposited. You can time the interest deposit in such a manner, that it doesn’t exceed Rs. 10,000 in a single financial year. For example, you can invest a lot of funds, with 12-month tenure in October. Since the financial year will close on the 31st of March, the interest will be split in two financial years, thus avoiding TDS.

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