Why is the Festive Season the Best Time to Get a Vehicle Loan?

The last four months of the year, from September to December, are often the most thrilling, as they encompass several major festivals. This festive period kicks off with Ganesh Chaturthi in September and wraps up with New Year’s Eve celebrations. During this time, festivals like Navratri, Dussehra, and Deepavali are celebrated with immense joy and enthusiasm across India. Hence, this period is aptly known as the “Festive Season.” For automakers, it’s an excellent opportunity to drive sales and optimize profits. Depending on the car manufacturer and the model, festive season offers can provide substantial savings for buyers through discounts on vehicle prices and lower interest rates on vehicle loans.

Table of Content

• 7 Reasons to Get a Vehicle Loan During the Festive Season

7 Reasons to Get a Vehicle Loan During the Festive Season

If you’re considering buying a vehicle, you may find that the festive season is indeed the ideal time to secure a vehicle loan.

Exclusive discounts:

One of the most appealing reasons to buy a vehicle during the festive season is the attractive discounts offered by manufacturers and dealers. These festive discounts reduce the overall cost of your new car, giving you the chance to put those savings toward essential accessories or other enhancements for your vehicle.

Attractive interest rates:

During the festive season, many banks and financial institutions offer lower interest rates on vehicle loans to attract more customers. Lower interest rates mean reduced monthly instalments and a more affordable loan overall. This is especially beneficial for buyers as even a slight reduction in interest rates can make a significant difference over the vehicle loan tenure, helping you save a substantial amount of money.

For instance, if a bank offers a 1% reduction in interest rates during the festive season, this can save you thousands of rupees over the life of the loan. Since interest rates are one of the most critical aspects of any loan, a reduced rate during the festive season can make a big impact on your overall finances.

Customised festive loan schemes:

To attract customers, banks and financial institutions often introduce special loan schemes tailored for the festive season. These schemes may include zero down payments, longer loan tenures, or even holiday moratoriums that allow you to defer your first payment by a few months.

For instance, a bank might offer a three-month moratorium, allowing you to start repaying your loan only after three months of purchasing the vehicle. This can ease the initial financial burden and allow you to focus on enjoying the festive season without immediate repayment stress.

Special discounts and offers on vehicles:

Car manufacturers and dealerships take advantage of the festive season to clear out their inventory and make room for new models. This is often when you’ll find enticing offers, such as cash discounts, free accessories, extended warranties, and service packages. These additional perks can significantly enhance the value of your purchase.

For example, you may receive substantial cashback on select car models or get free insurance coverage for the first year. Some dealers even offer exchange bonuses if you trade in your old vehicle. Such discounts and add-ons can effectively reduce the overall cost of the vehicle, making the loan even more manageable.

Reduced waiting period:

Generally, car manufacturers ramp up production during the festive season to cater to the high demand. Hence, the waiting period on select models may be less when compared to other days. So, you may get your new car earlier if you purchase it during special occasions such as Diwali, Christmas, etc.

New car launches:

The latter months of the year also see a surge in new car launches. Many car manufacturers choose the festive season as a prime time to introduce their latest models, allowing you more options to consider. You can access the newest features and technology, and you may also benefit from special introductory pricing on these fresh releases. A loan against a car can be a practical option if you want to unlock the equity in your car while continuing to use it.

Auspicious time:

The festive season is widely considered an auspicious time for making significant purchases, such as cars and homes. This belief makes it the ideal period to bring a new car home. Additionally, you can take advantage of the other factors mentioned below to enhance your car-buying experience.

Suggested Read: All You Need To Know About Used Car Loan

Festive season not only brings discounts on new cars but it also brings exciting offers on car loans. During the festive season, financial institutions/banks come up with easy finance options with flexible tenure, reduced down payment, low-interest rate, zero processing fee, etc. Before applying, review the vehicle loan eligibility guidelines, as they vary from one financial institution to another.