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Should you buy an electric or non-electric vehicle? Compare lowest car loan interest rates

It is advisable to compare the budget, total cost, and interest rates of different banks before financing your vehicle, whether electric or non-electric.

Should you buy an electric or non-electric vehicle? Compare lowest car loan interest rates
The upfront cost of electric vehicles is very high. So, some people may have an affordability issue.

Making a choice between electric and non-electric vehicles is challenging for many people. One easy solution is to decide the basis of budget and preference in terms of efficiency and comfort.

Electric vehicles are not only environmentally-friendly but also efficient in terms of saving every day running costs. If rising fuel costs make you nervous, then an electric vehicle could help you save some money since electric vehicles use renewable energy sources, so they use eco-friendly. Their maintenance cost is also lower in comparison with conventional vehicles.

Besides comfort and eco-friendly features, electric cars could be easy on your pocket considering the tax and other benefits some states offer on purchasing these vehicles. Also, it is easy to drive electric vehicles since they don’t have gears, so anyone can easily drive them without learning the complex controls of conventional vehicles.

However, the upfront cost of electric vehicles is very high. So, some people may have an affordability issue. Lack of charging infrastructure is another issue that might affect such vehicles’ usage. Though many car companies are launching electric vehicles in India, there are still limited options available in the market for consumers.

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When it comes to non-electric vehicles, such vehicles are available in all budget categories. From basic to premium, all buyers can easily buy these vehicles. They are affordable and available in all types of vehicles. The only drawback is that the maintenance cost is high, and the rising fuel cost makes these vehicles expensive in the long run for 10-15 years. These vehicles are also not considered eco-friendly and, if not maintained properly, may pollute the environment more. Affordability and variety are the two most interesting features of non-electric vehicles.

Whenever you buy any car, it is important to check the available features and safety. You must see what fits your requirement. Buying a car seeing your neighbour won’t help you. Another important factor is your budget and affordability. Always check how much you want to spend and how much you can exceed your budget to avoid financial troubles.

It is advisable to compare the budget, total cost, and interest rates of different banks before financing your vehicle, whether electric or non-electric. It is seen that electric cars come with attractive interest rates. However, your employment, credit score and existing loans make a difference when you finance any vehicle or take a vehicle loan.

The table below helps you compare the interest rates on loans for electric and non-electric vehicles. You can compare and take a call based on your budget and requirements.

Interest Rates: Electric Vs Non-Electric Vehicle

Compiled by BankBazaar.com

Note: Interest rates on Car Loans for electric and non-electric vehicles for all listed (BSE) Public & Pvt Banks considered for data compilation (Excluding small finance banks); Banks for which data is not available on their website are not considered. Data collected from the respective bank’s website as on 27 Sep 2022. Top Banks with lowest interest rates on e-vehicle are listed in ascending order i.e., bank offering lowest interest rate on electric car loan is placed at top and highest at the bottom. Lowest interest rate offered by the banks irrespective of loan amount is shown in the table.

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