The following article is an initiative of BankBazaar.com and is intended to create awareness among the readers
In the old days, owning a car was considered a status symbol but now it is a convenience that everyone has easy access to. Whether you are driving to office or dropping of your children at the school, cars have become a necessity to go from place to place. From keeping appointments to cross-country road trips and driving off to a distant place for a taste of adventure, owning a car comes in handy.
If you are in the market for a car, there are plenty of options to choose from. Multi-utility vehicles and SUVs to passenger cars and commercial vehicles, there are several makes and models of cars available on the market to suit the varying needs of the consumers. For some, owning a car is a convenience while for a few with deep pockets it is a passion. Take sports car enthusiasts or classic and vintage car collectors for instance, they comb the world looking for the next fastest car or finest classic car to catch their eye.
Expensive cars are more than just a form of transportation. They are considered as a piece of art in the eyes of car enthusiasts. And, why not? The small percent of the population that looks for luxury, speed, and flamboyance over practicality don't mind shelling out huge sums of money for the best rides in the world.
How to afford an expensive car that is not in your budget? Banks in India offer car loans for new and used cars at attractive interest rates. Compare car loans online for free on a comparison portal and choose a lower interest rate car loan from a reputable lender in the country.
How to afford a car of your choice?
Apart from the brand name, design, and features, what sets a car apart? It's the price of the car. You have different types of cars on the market from the economical passenger vehicles to the expensive sports cars. So, how is a car valued or priced? What are the elements of a car that make up the price tag? Design, engineering, materials, engine, and man hours are some of the key elements that are taken into account when pricing a car. The super wealthy car enthusiasts in India can celebrate the leverage on import duty.
If you are relying on bank loans to fund a part of your car purchase, then it is important to check your car loan eligibility. Any self-employed or salaried individual from 21 to 60 years of age can apply for a car loan in India. Car loans can be repaid through Equated Monthly Instalments (EMI). Use the car loan EMI calculator online for free to check the overall interest payable and total cost of your car loan.
Domestic and international auto manufacturers compete with each other to launch cars that not only enhance their brand image but also increase their profitability. Keeping the air pollution in mind, several governments across the world have embraced energy fuel vehicles. India and China are looking forward to the transition from petrol and diesel vehicles to electric vehicles. With the hike in fuel prices, it won't take long for consumers to make the transition to electric cars.
As long as car manufacturers cut down the cost of electric cars and provide quality battery that is long-lasting and covers as much miles as a petrol or diesel car, customers will happily switch to electric cars. The government of India and China are working on providing subsidies to electric car customers in a bid to speed up the transition. Given the pitiable air pollution situation in New Delhi, the government is inviting tender bids for 10,000 electric transport vehicles for March-April 2018.
Banks can look into providing car loans for electric vehicles at competitive interest rates with flexible loan tenure and repayment options. Communities must also do their bit by supporting the installation of charging ports in each city for electric vehicles.
Hydrogen fuel cell vehicles
Another form of energy fuel vehicles are the hydrogen fuel cell vehicles. A Japanese automaker is in the process of launching hydrogen-fueled vehicles as an alternative to petrol and diesel cars as they can cut emissions by 30% in comparison to conventional vehicles. However, there are certain challenges in manufacturing and operating a hydrogen fuel cell vehicle. It may take time for consumers to opt for hydrogen-fueled vehicles when compared to electric vehicles that are currently mainstream.
Hybrid vehicles also known as Hybrid Electric Vehicles (HEV) combine electric motor and gasoline engine, giving more power while proving economical in terms of fuel consumption. Greenhouse gases like carbon monoxide that is emitted from a car is harmful. Hybrid vehicles cut emission by half in comparison to conventional vehicles that completely run on petrol or diesel. When the vehicle is operated in electric mode, there is no emission to pollute the air.
Usage-based car insurance for all types of cars
After taking a look at the different types of cars available on the market, we would be amiss if we didn’t discuss car insurance. Motor insurance is mandatory in India as per the Motor Vehicles Act, 1988. A comprehensive car insurance policy will protect the policyholder against third-party liability and any damage caused to the driver or the car due to an accident or a natural calamity. This is a good time for general insurers and motor insurance companies to develop customized car insurance policies for electric cars, hydrogen fuel cell cars, and hybrid cars.
Usage-based insurance works on the concept of Telematics, which is striving to gain grounds in the car insurance industry. The cost of insurance or to be exact, the insurance premium will be calculated based on the driving habits of the policyholder, the distance travelled, and the usage of the vehicle. In the conventional method, geographical location, year of manufacture, make and model of the car, and engine capacity are the factors used to determine car insurance premium.To gather the data for car insurance premium calculation, a smart device called the ‘Black Box’ is installed in the diagnostics board of the car. This device will record the data and transmit it to an app on the car owner’s smartphone. Telematics helps insurers determine insurance premium based on car usage. This technology is beneficial to the policyholder as well. The car owner is alerted through the app if there is a break in speed limit. The car can be tracked if it's stolen or missing using Telematics.