Auto Loans

If you are planning to buy a new Car for yourself. So must have made your choice by now. It might be a Honda, Bentley, Rolls royace, Maruti, Suzuki, Tata, or Hyundai. It might be any brand but what is the most important part is that it must be in the size of your pocket.

On the other hand you must have made it clear how you are going to pay for your new car. I would suggest that if you are a salaried person and not having a big budget then go for an auto loan, the main benefit of an taking a loan for your new car is that you would get a rebate in your income tax. The premium for your loan would be exempted from the tax according to the Indian Law.

You can finance your new car or take loan to buy an old car in both the cases the premium for the loan amount wold get rebate in the income tax. So either you are buying a new Mint fresh model or taking a loan for a second hand car. The benefits of tax are always there.

So go for a auto loan when going to buy a vehicle for your use, it saves tax and keeps the cash with you only. This cash could be used to invest in other commodities or schemes to make more wealth.

Do not think that loans are bad they could be good in some circumstances.