6 tips on how to get the best deal on a car loan

A few years back, buying a car was a luxury not everyone could afford to have but, with growing pace of time, purchasing a car is no longer a luxury. Cars are now an important part of our lives and to own a car has become relatively easier with a number of auto loans offered by the companies. To live without a car hinders our social as well as professional life. Thus, emerging car loan lenders have made it easy for us to purchase a car by paying loans through installments or EMIs.

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Although, we need to take care of below mentioned points before seeking a car loan:

  • Shop around to get the best rate: Usually, you shop around to find the best car for yourself likewise, to get the best possible bank loan for your car, you need to do the same. Car buyers are discouraged by the dealers to buy a loan from other banks, they often pick loans from the bank with which car dealers have tied up. In this case, you must talk to other banks regarding car loans and you are more likely to get attractive offers than what your dealer was offering you. Therefore, before purchasing a car, you must do proper homework in order to get the best results.
  • Always negotiate the price of car: The car price should always be negotiated in order to bring down the cost of a car loan. Hence, this is the best possible way of doing so. Car dealers have usually fixed some sizeable margin on every car and possibly, you can get some discount on them. You must speak to multiple dealers for your car loan to get a brief knowledge on various offers and discounts available. At the end, if the price of your car will go down similarly, the amount of your car loan will drop too.
  • Go for shortest loan tenure, which you can afford: Never ever make the tenure of your loan needlessly long. You should always try to repay the amount as early as possible. Longer tenure means your EMIs are low but, if you can afford then make sure it lasts for a period of 3-5 years, which means your total interest rate would be fairly low. No need to opt for long tenure loans if you desire to buy an expensive car. A car loan for eight years makes no sense, as it will significantly increase the total cost of the car.
  • Keep a check on your credit reports: Well, before getting a loan, you must check your credit card reports. Any inconsistency in your credit card report may affect your credit card profile. Also, this can lead to higher car loan interest rates. You must get in touch with the rating agencies, in case you find any problem with your credit card.
  • Must avoid the extras by dealers: Buying is not the end always. Sometimes, dealers charge extras on cars by adding a number of accessories, which include central locks, gear locks to audio systems. Never buy the accessories from a dealer shop because their rates are significantly high. You have to buy them from a good accessory shop at reasonable prices.
  • Do not forget to read the document: You must not forget to read the documents carefully at the end. The documents will include prepayment charges, interest rates and other terms and conditions. Thus, this is to make sure that you read the whole document carefully before signing it.

So, if you are planning to buy your own dream car, opt for the right car loan.

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Tips to Consider When Availing Car Loans

In recent times, owning a car has become a symbol of status as well as a basic necessity for most. A majority of the people, however, cannot afford a car with the amount of salary they earn or due to their desire to purchase a car that is well out of their budget.

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Car loans have made lives relatively easier and comfortable for everyone, making it possible for almost every person earning a stable income to buy a car.Here are a few things to keep in mind when you decide to avail a car loan:

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  1. Compare options: When you come across any car loan option, ensure that you don’t blindly choose the first one you find. Instead, compare the features, rates, and benefits of every option to find the one that would suit you best.
  2. Down payment: While the car loan will help you get the car of your dreams with little to pay every month, it would be best to calculate your Equated Monthly Instalment (EMI) using the car loan EMI calculator beforehand and making a substantial down payment to ensure that the burden of paying EMIs reduces to a great extent.
  3. Rate of Interest: Consider the rate of interest being applied by the bank on the loan. Looking for options that offer loans at the least rate of interest will allow you to save more.
  4. Consider the benefits: Before settling for a loan option, ask about all the facilities and benefits the loan would allow you to enjoy. By considering all the benefits given, you can make the right decision depending on your preference.

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By keeping these tips in mind, you can make sure to find the which car loan would be the most suitable for you.

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