With an extensive range of car loans, being offered by banks, personal finance companies, etc. associates buying a car is not a big deal now. Moreover, with so many funding options, you hardly get massive or intricate criteria to be eligible for a car loan.
However, loans are always financial burden be it a car loan, or education, or a home loan. Thus, before getting a loan, you must always take up the best initiative to negotiate loan amount with car dealers, look for low-interest rate, required benefits, to minimize the pressure of excessive interest and loan repayment stress.
Negotiate on car price
The best and smartest way to cut down the pressure of a massive loan amount is to negotiate on your car. Dealers often have a good margin on the sale of a new car. Therefore, you will find many dealers offering lucrative discount deals, promotional offers, etc. on the sale of the new car. If you can essentially avail such discounts and offers your car price gets down and even your loan amount. Try out comparing different dealers to filter the best available quote.
Loan Deal Comparing
Just as you compare and filter the best available car price, comparing loan schemes offered by different banks and financial institutes or companies is also equally important. Many a time, dealers have collaboration with particular banks, who offer loans to car buyers.
Since banks tend to offer a percentage of commission on every loan customers arranged through the dealer, dealers will always try to be biased about their associative loan partner. However, check on other available car loan options as well, since you may get even better deals, low rate of interest, etc.
Short Loan Tenure
When seeking for car loans, look for loans with a short tenure of repayment, take for instance 3 to 5 years. Since car loan is actually not a productive debt, it is not smart enough to pay a bulk of interest for car loans. However, only if you can afford to pay a little higher EMI per month, go for short-term loans. However, long term loans mean less EMI, but if you go by the real calculations, you are paying a lot of interest.
Credit profile Check
Banks often tend to quote a higher rate of interest to the customer, who has sort of discrepancy in their credit profile. Thus, if you are looking ahead for a good loan deal, it is essential to check your credit profile before applying for a loan. Banks will undoubtedly crosscheck your credit profile and if they find any sort of discrepancy, your loans will be difficult. Thus, checking beforehand will offer you the opportunity to rectify, if there are any issues with the agency handling your credit rates.
Loan Finalizing Essentials
- Don’t just go for low EMI rates, look at the long-term payment calculation, and the total amount of interest, which you need to pay. Hence, accordingly determine the best loan scheme.
- Always try to consider more than one option of loan provider and compare rate of interest, tax issues, tenure of loan, etc. factors.
- Reading the fine print of the loan papers is very important to be well acquainted with all the terms and conditions of the loan. Banks can readily tag you, as a defaulter in case of any term condition failure.
- Also, inquire about penalty rates of early repayment of loans with the company or bank you associate with for getting the loan.
Thus, getting best loan deals, low-interest rates, and best schemes is always dependent on your research work and comparing efforts on various available loan options.