How to get car loans with best offer?
It is a dream of every person to buy their own car since childhood. In childhood, we used to play with your friends like driving a car. When you grow up and are in a position to buy a car, you may be confused about how to buy a good car at the best offer. You cannot avoid buying a car because of fear of car loan For this, you need better planning. follow our advice carefully to for get a good car.
Tips to grab best deal on your car loan.
Choose your car.
The first car is really a dream come true and a special moment in our life, so think about your need. Be it for pure pleasure and interest or for function, whether you need six seats or a compact well-seated car is enough, every person’s needs are different and the automobile market has plenty of choices in which to choose the right car for you.
Negotiate the car price.
After choosing a suitable car that you like, inquire about the price of the car. Dealers usually have huge margins on any sale they make. Many dealers will offer discounts and offers, which can help reduce the price of your car, thereby reducing your loan amount further.
Know your credit profile.
Ask for opinions from people who have prior experience with car loan banks. The interest rate, tenure and loan amount offered by the concerned bank or financial institution are all determined by your credit score and bank statement. Check your credit history if there are outstanding problem loans that need to be resolved.
Better interest rate.
Dealers can usually offer you a car loan with the intention of somehow trading the car in to you. Dealers may encourage you to take loans with banks, which may be the best offer in the market. However, you should investigate and know everything. You should do your own research on getting a personal loan and its consequences.
Choosing the EMI Term.
While choosing the EMI tenure choose the lowest EMI tenure as possible because people will choose longer tenure over the lowest EMI payment tenure. What you need to remember here is that cars are a depreciating item. Keep in mind that paying EMIs for such items over a long period will be like paying more for the car.
Avoid parts from dealers.
Many dealers do not include accessories like audio system in the price of the car. These are considered as optional extras, such auto parts which would cost more from dealers can be obtained at much cheaper prices from external auto parts stores. Through this you can reduce your car loan amount a little.
Read loan terms carefully.
Carefully read the details like loan advance charges, interest rate, processing fee etc. to make sure what you are getting.
Eligibility of Car Loan.
Age Limit :
A minimum age of eighteen to a maximum of seventy five is required to avail a car loan.
Income:
A minimum income of Rs.10000 per month is required to avail a car loan.
For Salaried or Self-Employed – Minimum 3 years of experience in income generating business.
Factors Affecting loan.
The price of the car also affects the loan amount. As the bank treats the car as collateral for the loan, if the EMI defaults, the bank can sell the car to recover the remaining loan. Thus, the higher the price of the car, the higher the interest.
Down-payment – The more down payment you make, the less money you have to pay back to the lender. EMI will decrease.Lender’s side risk will be less.
If you get a car loan, who owns the car?
When you go for a car loan, the car becomes collateral, which means the car remains in the lender’s name for the duration of the loan. So, if a person fails to pay the EMI, the bank can impound the car and sell it to recover the due amount.
Conclusion
Don’t Hesitate to Buy Your Own Car If you follow the above mentioned factors carefully you will be able to make the right decisions and buy your dream car with the best offer.