Car Loan

The car loan is the great way to drive your dream car without having to make the complete payment upfront. Some other features which make car loans tempting are: Flexible contract terms & comfortable tenure of loan i.e. up to the 7 years. Competitive & attractive interest rates for car finance. Tax deductions can be applicable if a vehicle is used for the business purposes. Almost everyone with a permanent Income may apply for the car loan/ auto loan. Some banks offer up to the 100 percent of car finance on the ex showroom price & normally up to the 85 percent of car finance on the ex showroom price is available with Very less processing fees & prepayment charges.

What to do to get the best deal on your car loan ?

Buying a new car is a significant step for all of us, whether it is the first box on wheels that we are buying or the third premium sedan which we are adding to the garage.

But many of us unwittingly fall prey to temptations laid before us by manufacturers or dealers, miss reading the fine print, or sometimes commit the most common mistakes buyers make while buying a new car. Here are some tips to avoid these mistakes and save some much needed cash. With the current downturn in the market, there couldn’t have been a better time to strike a bargain while heading out to get your dream car.

Negotiate the car price -Talking about financing, after deciding to go in for a new car, the next big call to make for the average car buyer is whether to seek financing for a part of the car’s price and who to take the loan from.

First, even if you are going to take a loan, don’t mention it to the dealer immediately. Sales-people at the dealerships are trained to play around with discounts and often present price-cuts in the form of lower interest rates if you are taking out a loan. So talk to them like you are doing a cash-down deal and negotiate the discounted price or the freebies that can be thrown in before revealing your plan to take out a loan.

Shop around for the best rate - Like you do with your car, shop around for the best deal possible for your bank loan. A car buyer often tends to pick up the loan offered by a bank the car dealer has tied up with. Dealers often discourage a car buyer to seek a loan from any other banks, but in most cases the loan deals with a dealer is often not the best available. Talk to different banks and the chances are you will come across a loan that is far more attractive than what your dealer was offering. Do your homework well and try and get a loan lined up before you zero in on actually purchasing your car.

Choose the shortest loan tenure you can afford - Do not make the tenure of your loan unnecessarily long. A car loan is a not a productive debt and you should try and repay it at the earliest. While a longer tenure would mean you EMIs are lower, if you can afford it, try and opt for a loan that is in the range of 3-5 years. This would mean the total outgo in terms of interest would be far lower. Desist from the urge to buy an expensive car and opt for longer car loan tenure.