Credit scores and Car loans

car loan credit score

It is believed that if someone wants to make the best investment, he can buy a car. People believe that car is the first investment that someone can make and after that, he can think to invest in a house. Mostly people want to take the loan for a car, but before taking the car loans, there are some points that you must have to keep in mind. Some of them are discussed below:

 

You have to know the correct credit score

It is one of the most important factors that you must have to determine before taking the car loans. It is believed that you have to know the correct credit score. The benefit of knowing the right credit score will be that you will be able to decide that what type of loan you have to ask from the lender.

You have to know that all the lenders use different scoring systems. When you know the right credit score, you will be able to know that what scoring system will be suitable for you.

Try to remove the negative impact

It is suggested that you have to apply for the car loan during the 14 days. If the lender checks your history, your credit score will decrease. That is why it is important to keep the process of your application for the two weeks; this will be helpful to reduce the negative impact of your credit score.

Pre-approval is important

This is another factor that someone must have to keep in mind before taking the car loans. It is believed that you have to take the pre-approval and then you have to shop. This will prove to be beneficial.

Pre-approving simply means that you will get enough loans so that you can pay the amount of your car easily. There are different ways that you can use to get pre-approval like banks and online-lenders etc.

You should know the amount to pay per month

It is important to estimate the amount that you have to pay to the lender per month. Deciding per month amount is the most important factor that you must have to keep in mind if you want to take a car loan.

You should know the dealership financing

Knowing the dealership financing is one of the most important factors. Like if he will charge 0% financing, your amount per month will be decreased, and it will prove to be beneficial. You must know the dealership financing before taking the car loans.

Someone must have to follow all these tips before taking the car loans. These tips will always prove to be beneficial, and you must have to keep in mind all these things before taking the car loans.

Car Loan Interest Rate in South East Asia

car loan asia

Studies reveal that the gross bank auto lending in the year 2018 is going to increase by $93 billion in the five Southeast Asian Countries. Experts say that the economic environments these days are favorable, and it is also affecting the purchasing power of consumers. Hence, the auto lending services in the banks are availing sustainable growth in South East Asia. It is observed that Vietnam and the Philippines presented the highest growth rate in auto lending from the year 2011 to 2016.

If we consider the stats obtained from the year 2016 to 2018, the bank auto lending for the individual consumers has improved by 7% compound annual growth rate in the 5 emerging southeast Asian markets. The list includes Vietnam, Thailand, Malaysia, Indonesia, and the Philippines. However, this growth rate is believed to sustain after the year 2018 due to several reasons such as low auto finance penetration rates, low car ownership rates, growing lifestyle of middle-class families, and increasing consumer purchase powers with higher economic growth.

Experts say that the rise of ride-sharing services has created a competitive environment for auto financing companies these days. Banks in Vietnam and the Philippines are growing well in the auto lending market, and this growth is expected to sustain for the next 2 years. On the other side, Malaysia is considered as a country with highest car ownership rate that is showing largest share for auto lending in the market these days. But the growth rate for the year 2016 and 2018 is observed to be 2% only, and the estimated decay was from 46% to 42% in these two years. However, the growth rate in Vietnam is observed to rise by 6% in the year 2018 as compared to the 4% growth rate in 2016.

It is also true that most of the buyers these days are attracted to the used car market, so banks are also focusing on serving such type of clients. This has changed the market scenario and the interest rates as well. Whether in terms of new cars or used cars; people are shifting from motorcycles to four-wheelers. Irrespective of the air quality and traffic congestion issues; cars have become a status symbol for most people these days. That is why banks are also lowering the interest rates to attract more buyers and to enjoy more profits. The auto lending market is expected to grow ahead by a great extent.