If you are considering purchasing a car in Pakistan then you may want to consider car financing. Purchasing a car is a huge commitment and you need to ensure that you are getting the best deal and the best value for money. This is where it is important to carry out comparisons on car financing options to find a deal that works for you. Now mawazna.com provides you the best facility to compare car financing in Pakistan offered by the leading lenders and Pakistani banks.
In Pakistan, owning a car is more about practicality than luxury and that is why many banks offer car financing for new and used cars. However, before you make the final decision it is important that you understand just how much you can afford because it is a huge commitment that is spread over several years (a period of maximum 7 years).
This will mean that you can afford to cover the monthly payment for the loan as well as any other expenses that may come to your ways such as maintenance and even the cost of fuel. This makes it important to consider your income and then set aside a certain percentage of the financing. The following are some of the banks offering car financing in Pakistan. However, mawazna.com provides you a comprehensive comparison facility covering all the leading banks offering car loans in Pakistan to help you with making a well-informed decision:
– HBL car loan
– MCB car loan
– UBL car loan
– Bank Alfalah car loan
– Bank Al habib car loan- JS bank car loan
– JS bank car loan
So, when the time comes to find the right finance what things should you consider before making the final decision?
The Interest Rate
The interest rate is also sometimes known as a service charge or markup but whatever it is called, it gets added to the loan amount which differs from the value of the car over the duration of the loan. In a case of Islamic car financing (Car Ijarah, Auto Ijarah), it is considered as profit rather than the interest rate. The rate can be fixed for the duration of the loan or it could be a variable rate which is then based on the market and can fluctuate from year to year based on KIBOR (Karachi Interbank Offered Rate) rate in Pakistan. Therefore, it is recommended that you find a rate (based on your individual circumstance) that provides you with a monthly fee that you can afford but it also ensures that you do not get any nasty surprises.
Every bank will require any car that you finance to be covered by insurance and this cost can range from 3% to 5% each year depending on the car make and model. This is based on whether you choose to install a tracker or if your car is considered to be attractive to car thieves. This is often paid in full when the loan begins and it is put in place for one year where you will then pay a fixed amount each month until it is time to renew next year. In some instances, there are banks that will allow you to pay for this insurance each quarter. Always ensure you compare car insurance options and no doubt, Mawazna’s car insurance comparison facility can help you in this area as well.
Additional Reading: Compare Car Insurance Online and Bag the Best Deal
This is the total amount that the bank will offer you depending on the type of car you plan to purchase such as new or used or local or imported. It is also worth remembering that every bank will be different. However, most banks will offer a maximum of 85% of the total value of the car.
Duration of the Loan
This is also referred to as the tenure and it is the period of time over which you have the loan in place. In general, the maximum amount of time you can borrow the money over is seven years in Pakistan. The total interest charge that you will pay will fairly depend upon the term of the loan.
Sometimes, car owners can find themselves in a position where they can pay their car loan off early. However, it is worth noting that it is common for banks to charge a fee for settling the loan early. So make sure you analyze this element in case you plan to pay-off your car loan earlier.
Occasionally, car owners will want to reduce the amount of time they are paying the loan back by making balloon payments. Doing this can also help to reduce the amount you pay per month and so, if you think that this is something you may be able to do in the future then it is worth finding a bank that will give you this option.
Find the Best Deals by Comparing Car Financing in Pakistan
While many banks will do all they can to win you as a customer, it is always worth comparing the different financing options that are available to you. By using Mawazna.com, you will find the deals from a wide range of banks. This will also make it possible to find a best car loan rate that suits your circumstances and budget.
Mawazna.com is a growing financial services comparison platform in Pakistan that enables consumers to make more informed decisions when choosing financial products and services including car financing, personal loan, home financing, health, car, and travel insurance comparison, selection and buying an insurance policy offered by leading insurance companies of Pakistan. Visit us online to compare banking (all loan products and car financing), insurance (car insurance, travel insurance, and health insurance) and broadband products to make more informed decisions.
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