Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>


A car is a big investment, and not everyone can afford the upfront costs of purchasing one. Rather than not buy a car at all – which isn't a practical solution if you're due an upgrade – you can split your payments into more manageable chunks by taking out an auto loan.

An auto loan, or a car loan, is a loan that you take out which pays the upfront costs of a vehicle for you. You will then repay your lender based on the agreed terms, with added interest. Most loans will be secured by the cost of the vehicle, which means that if you fail to pay it back on time, your vehicle will be used as a form of payment to the lender.

Auto loans allow you to purchase a vehicle when you may otherwise have been unable to. Here are 6 reasons to take out an auto loan for your next car purchase:

1. Competitive interest rates

Because there are so many auto loan options to choose from, interest rates tend to be fairly low, especially if you have a good credit score. Take a look at loan comparison sites to make sure you get the best deal.

2. Flexibility with payments

Obviously, when you enter a loan agreement, it's with the expectation that you'll make your payments on time, but if you do find yourself in unexpected financial difficulty, there are plenty of auto loan lenders who will allow you to temporarily postpone a payment until you're ready to pay it.

3. Options for low credit scores

If you've got a low credit score, don't be quick to assume you won't be able to take out an auto loan. Take a look at the Best Bad Credit Auto Loans (Top 6 Lenders of 2019) if you have bad credit but need to finance a new car.

4.  Improves your credit score

If you can pay your auto loan off as agreed, as with other loans and credit cards, it'll go on your credit report and improve your credit score. Some people take out auto loans with the sole purpose of enhancing their credit score, because providing you stick to the rules, it's a guarantee.

5. May include additional perks

This is where it pays to do your research: some auto loan providers will offer additional perks if you choose to take a loan out with them, like free servicing and road free tax. Ask about possible sign-up incentives during your initial conversation with a loan company.

6. For bigger purchases

When you're purchasing a car outright, you might not have the finances to really splash the cash on a newer or more expensive model. Taking out an auto loan allows you to pay your vehicle off over an extended period of time, so you won't feel such a big hole in your pocket from one entire payment. This will enable you to make a more expensive purchase should you wish to.


Posted by : GoDubai Editorial Team
Viewed 2336 times
Posted on : Tuesday, December 10, 2019  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Zoho partners with Mashreq
Next Story : GCC insurance industry to witness growth revival, forecasts Alpen Capital
Email this article Print this article

Share this article with your friends and followers


Back to Top  
Most Viewed Press Release posted in the last 7 days
Drops of Youth
Valentine's Gifts to Fall in Love With
Start the Year with Gorgeous Glowing Skin with a Little Help from DERMAdoctor
The Tag Heuer Autavia
Corum Admiral's Cup Legend 47 Worldtimer'
Kanz Jewels proves to be a lucky destination for jewellery shoppers during DSF 2020.
Dubai Jewellers Expect a Steady Sale During the 25th Dubai Shopping Festival Pro...
Malabar Gold & Diamonds - New Store opened in Kanpur, UP, India
Show your Support for Australia alongside THT – That Hair Tho
The Winter Youth Olympic Games Lausanne 2020
OMEGA Ready to Time The Winter Youth Olympic Games Lausanne 2020
Eberhard & Co. Gilda timepiece makes an extraordinary Valentine's Day gift
Foreo Reveals the Ultimate Valentine's Gift List for Women
Zeitun Cosmetics Launch in UAE
Corum And Joachim Horsley Light Up The Folies Bergère
Elegant diamond-swathed Kalpa Kalparisma set to dazzle fine watch enthusiasts
160 Years Young: Tag Heuer Kicks Off a Milestone Anniversary With the Re-edition...
Beleaf's Top 5 Vegan Supplements
Seha Leads Discussions in Pediatric Medicine
Valentine's Day Fashion and Gifting - Steve Madden
Spice It Up With Szechuan! Shake Shack is Celebrating the Chinese New Year With ...
Oris pays tribute to the world's greatest jazz musicians with Art Blakey Limited...
Marks & Spencer Welcomes Spring with its Midi Dress Edit
Fashion and Gifting for Valentine's Day - ECCO
Traversetolo Vitre in blue dial makes stunning impact
Foreo Reveals the Ultimate Valentine's Gift List for Men
Etihad Airways and Easyjet Enter Into New Partnership
The Data Center Market in 2020: What to Expect
Celebration in Bahrain for Aga Khan Award Laureate “Revitalisation of Muharraq”
UAE Falconers League Kick Starts Competition with 10 teams in Al Ruwayyah
ADNEC to Host the World Future Energy Summit 2020
C Central Resort The Palm Welcomes 2020 with its Grand Opening in Dubai
OSN; The Only Place to Watch Golden Globe Winning and Nominated Content in the M...
Head to Freddy's for the Ultimate Frozen Custard Party
MoHAP's Training & Development Center Receives the Silver Award from the America...
Why this is the right time for TMCs to automate their processes?
Drive home more than just a car: Juma Al Majid offers value deals on new Hyundai...
Lg to Join Forces With Cerence on Ai-powered Connected Car Platform
HONOR Wins Big at CES 2020 with Growing Momentum of Wearables
Schools from across the UAE to battle it out at Credence High School's annual Qu...
EEC Engie Deploys Schneider Electric's New Medium Voltage SF6-Free Switchgear Te...
HINO trucks dominate the UAE's fuel delivery sector
Etihad Guest Programme Welcomes Gulf Air as New Airline Partner
Secure Technologies and Artificial Intelligence in Focus for Airbus at Intersec 2020
Why Video Surveillance Is Great for Retailers & Consumers
Filipino finds respite from a rare eye condition and poor vision
Daiso participates in DSF 2020 with a showcase of over 800 new products!
Beleaf Opens its Fifth Store in Springs Souk
AU Offers 20% Discount to Ajman Government Staff
16th SteelFab opens at Expo Centre Sharjah