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How to Choose the Best Bank for Car Financing

Choose the bank that can offer you the best car financing deal.

There are several advantages to choosing bank car financing. A lot of people opt to finance their

cars with bank loans because their monthly car payment premiums tend to be affordable, and

the interest rates are lower compared to other sources. Banks are also known to provide a

longer time period for the borrowers to repay the loan, and this is possible because the banks

can adjust the amount of the monthly premium so that it is more affordable for the borrower.

Ba ks ofte issue a pre-appro al e e efore you hoose the ki d of ar that you a t; the the bank will clear you for a specific amount for your loan, and you can use that number to

choose the price range for your car.

But how do you choose the best bank for car financing? Here is a rundown of some of the

variables and guidelines that you need to consider when deciding on one that is best suited for

you and your needs:

Loan Term – This refers to the period of time during which the borrower has to pay the loan

back. Most of the time, car loans are repaid in monthly premiums and could last between one

and five years, although sometimes, they can last up to seven years. Make sure that you have

the means to pay the monthly due. Otherwise, the bank can repossess the car.

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Principal Amount – This is the total value of the loan minus the interest. To find out what the

principal amount is, begin with the purchase price then subtract your down payment. Then, add

after-market purchases that you opt for like health insurance, credit life/accident insurance,

warranties, etc.

Interest Rate – This is the fee that the borrower pays for the use of the money that he or she

borrowed from the lender. The interest on an auto loan is expressed in APR (Annual Percentage

Rate). You have to be aware of whether the interest is calculated as simple interest (interest is

paid o pri ipal alo e) or ot. “o eti es, you’ll pay the sa e i terest o thly, a d sometimes the interest is higher at the start of the loan. The average car loan interest rate in

the UAE is a bout 3%

Credit History – This is a report documenting how the borrower handles his or her credit. It

includes details of loans, repayments of mortgages, credit cards and other debt owed by the

borrower. It will not only contain open accounts, but it will also include all credit card accounts,

loans applied for or closed, and information on late payments, bankruptcy, high balances on

credit cards, and defaults on loans. Good credit history is one of the first things that a bank

verifies before approving a car loan application, so you have to make sure to maintain good

credit prior to applying for an auto loan.

Inquire and apply for a Loan at Several Banks – Contact your bank and other banks in your area

and inquire about the car loan features and benefits. When filling out an application, diligently

ensure that your details are correct, as inaccuracies found after the bank has verified your

information may terminate your chance to get approval for your car loan. The bank will

certainly look through your credit history, and having a good credit history will increase your

chance of clearance.

Applying for car financing can be challenging, but learning about all these variables will equip

you to choose the bank that can offer you the best car financing deal.

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About motoraty.com is a premium destination in the Middle East where we make car buying so easy. We at motoraty.com have

engineered the way online car shopper can navigate, search, and find what they are looking for.

motoraty.com offers credible and easy to understand information from consumers and car experts to help car buyers formulate

opinions on what to buy, where to buy and how much to pay for a new or used car. With comprehensive pricing information,

dealer reviews, car comparison tools, financial tools, and a rich multimedia section that includes photo and video galleries, and

unbiased editorial content. In addition, motoraty.com offers the latest car news locally and globally.

With a detailed car section and comprehensive information, motoraty.com put car buyers behind the wheel, and in control.

Motoraty.com was launched in June 2013, and it is available both in English and Arabic languages. Founded by Johny Giacaman

who has extensive experience in digital media.

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