Important information one should know before obtaining finance for purchasing a car?

Most car buyers use all their efforts to find out the most suitable car that can satisfy their aspirations and requirements. Finding a good car finance is also a crucial matter when one plans to buy a car.   Understanding your budget and the amount you can arrange as car loan will help one to make his search for the car in the correct direction. Getting a bad finance can lead to financial mess and spoil your credit history. Often it is a habit of car buyers not to think about good car finance options until they step into the car dealer’s office.   When one ends up with dealer for finance options, most often it happens that dealers are not interested to give you any offers.  In this article I am going to furnish everything one needs to know about car finance before one proceeds to car dealerships for purchasing cars.

Car loan explained

What is car loan:  Car loan is an agreement between the financier and the buyer of the car. As per the agreement financer agrees to give a loan for purchasing a car for the buyer under the condition that the loan will be repaid in equal monthly installments as agreed upon mutually and the company will be charging a fixed percentage of the loan amount as interest.

Interest: Interest is the amount the lender gets for his money which is given as loan to the borrower.   It is usually expressed as interest rate per annum. For the last many years auto loan interest has been very low and now it has started coming up. The amount of the loan, the period of repayment, the type of vehicle, your credit score etc can considerably affect the rate of interest of car loans.   Longer loans are not supported by most lenders as risk factor increases as the period of loan extends. 60 months period of repayment is the most common period for car loans.

Loan repayment details

Principal: Balance of the loan amount to be repaid is considered as the principal. When a loan is initially given principal will be the total loan amount.  As the payment proceeds the amount under principal will start decreasing. One portion of the installment paid will go to towards interest and the balance only will go towards the principal.

Down payment: Down payment is the amount the buyer of a car pays initially from his savings for buying the car.  The price of the car minus the initial payment the buyer is paying will give the amount which the financier has to give as car loan for buying the car. For example if a car is priced $40,000 and the buyer has paid $10,000 initially the car finance needed will be $30,000 only.

Monthly payment: Every buyer of a car with car finance will have to pay back the loan amount in equal monthly installment.  Every monthly installment will include two amounts. The first amount will be the interest till that date and the second amount will be the monthly installment towards the loan repayment. Finding the monthly loan repayment is a difficult process that includes some mathematical calculations. But each bank will be having their car payment calculator with which one can easily find out the emi by just putting some figures like loan amount, type of loan, period of repayment etc. into it.

Importance of credit score

Credit scores represent the person’s credit details and acts as an easy tool to understand the credit worthiness of a person.  These scores are based on credit information received from credit bureaus. These reports are used by money lending institutions to understand the potential risk factors involved while lending loan to its customers.

Why your credit-score matters?

There are many credit-reporting companies and each of them has some special method of reporting the credit worthiness.  Most of these companies use scores ranging from 300 to 850. Different scores on different models are not directly comparable. It will be very easy for a person with high credit score to get car loans quickly than a person with a low credit score. Usually a person with steady income and good credit score will not find any difficulty in getting a car loan.

Which are the most important tourist destinations in this world?

There has been a considerable increase in the global tourist outflow during the year 2018 as seen from the statistics for the above period. The growth in the number of tourists was 6.8 % and the total number of tourists during this year was a whooping 1.32 billion.  This figure is 84 million higher than that of the previous year. This is positive news for the top tourist destinations around the world as they were fearing recession as a result of security challenges posed by natural disasters which occurred during the year 2018.

The increase in outbound tourist demand from Brazil, Russian Federation etc and the inbound growth of India as a tourist destination are some of the reasons that contributed to the tremendous growth of tourism in the international sector. The statistics for the year 2018 so far, shows that the growth of international tourists is still increasing in the present year also.  It shows that there has been an increase of 6 % tourists during the period from January 2018 to March 2018 compared to the same periods for the previous year. Let us consider the first three countries which became the forerunners in this regard.

France: France has achieved an impeccable position among the popular tourist countries by attracting 86.9 million tourists in the year 2017 which is 8.1 million above its nearest rival Spain. Why France is so popular among tourists? Let us examine the matter briefly. The first and the most important attraction of France is its natural beauty. No country in this world can rival France in this regard. The French Riviera coastline, Loire Valley fields,  the snow covered Alps etc  are never ending fascination of the tourists of all ages as well as all countries. If you can snap some of these sceneries with your mobile camera, no doubt your followers on Instagram will become green with envy.

France is a country which has numerous stories of the rise and fall of empires and republics and bloody revolutions which are etched to the fabric of the country. The multitude of castles and the perfectly manicured gardens coupled with the sublime architecture from villages to capital etc. always keep France as the most fascinating country to the travel enthusiasts. Everybody accepts French cuisine as one of the best on earth. Paris, one of the most beautiful and fascinating cities of the world and the Eiffel Tower one of  the seven wonders of the world are other important things that attract tourists to this country of fashions and varied cultures.

Spain: Spain is the country which boasts second position with regards to the number of tourists that visited a country during the year 2017. This country is famous for the image of its crowded beaches or the enjoying of the bullfight sipping sangria. It is famous for its cultural attractions including ancient monuments of the Romans, the castles in the interiors which were built during the medieval era, vibrant cities named Barcelona and Madrid. The diverse nature of the landscape like evergreen estuaries belonging to  Galicia, the deserts of Almeria, mountain ranges of Sierra Nevada, and the glittering beaches along the costs etc are very much liked by the tourists who visits the country of  Spain.

The Royal palace situated at Madrid which is the official residence occupied by the king of Spain, the vibrant event of running in front of bulls that are let free, La Concha  beach which is considered as one of the best beaches of  Europe, Aqueduct of Segovia, Cuenca which is a marvellous remains of  a medieval city, the Sagrada Familia, a big church in Barcelona, Alhambra, which is partly forest, partly garden and partly palace and situated near the city of Granada on a plateau etc are some of the most prominent tourist attractions in the area.

United States of America: USA occupies the third position among the most visited tourist centres Over 76 million people visiting that country during the year 2017.  Last year 29.5 million tourists visited Las Vegas Strip, followed by grand central terminal in the New York which was visited by 21. 6 million  tourists. Third and fourth positions in this regard are occupied by magic kingdom of Disney Word followed by   Disney Land Resort with 17.1 and 16.1 million visitors during that year.