Did you know, you can bring home a new car with full 100% finance without spending a single penny i.e. down payment. Let's see how this is possible.
Many people have a hobby of buying new cars. But there is a huge difference between the means and capabilities of many people. At the same time it becomes not possible to pay the entire price of the car in cash. So the only option is car financing. Buyers have to deposit a small part of the price of the car. The rest is loaned. But did you know you can buy a new car with 100 percent finance without any downpayment? Let's find out how.
Zero Downpayment Car Buying Details
There are many banks that offer zero downpayment option to their customers to buy a car. Such an offer is called a pre-approved car loan offer. This special benefit is given to customers if they have high income or good credit score. As a result there is no worry of up-front costs. The repayment period of such loans is seven years. However, in this case, the bank may charge a small fee for processing the loan file.
Usually the interest rate of car loan is 8.75 to 9 percent. However, the interest rate is slightly higher in case of zero downpayment. But in case of buying a car, various expenses are covered under this loan. Such as ex-showroom price, card registration, road tax and insurance. However, the price of any additional accessories of the car is not covered by the offer. It will be paid separately by the buyers.
Banks ask for several documents to buy a new car with zero down payment. This includes Aadhaar card, PAN card, address proof, income tax return, and bank statement of last six months. Some banks may also ask for a guarantor for the loan. Along with the above documents of guarantor.
