Car Financing Options
Car financing in Pakistan is increasingly becoming a popular mean to purchase new vehicles, replace existing vehicle or upgrade. With the rising automobile prices, banks are offering individuals auto loans at low markup rates and flexible repayment tenures to purchase newer, bigger vehicles. For a bank, car financing carries less risk than personal loans or credit cards. Because a car loan is marked with the vehicle as collateral, banks are more comfortable in extending auto loans in the Pakistani market.
Although car financing is usually beneficial in the case of purchasing a new vehicle, banks also offer the option to purchase a car upto 5 years old. In this manner, individuals have a broader range of vehicles to select from and lower car financing amounts. However an important point to note is that the tenure of an auto loan in the case of a used vehicle directly varies with the year of manufacture of the vehicle; the older the automobile, the lower the tenure of Car financing.