It is imperative to know a few basics if you are out to buy a car in credit crunch. The practice of new car financing and auto loan has paced up in India since the middle class has taken a leap into new millennium. However, there are times when you may face credit crunch and have to make some hard efforts to get financial help from market. Here are a few things you can do before buying a car in credit crunch:
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Understand the significance of pre-planning: Always try to secure finance when the competition is intense between the players. This should be done little before you go out for car shopping. It will help in reducing your car financing costing and help in bargaining a better deal. When new car sales are low the prices are also down. So, take care to arrange your finance on right time.
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Negotiate: Stay prepared to negotiate with the car dealer. When market sales are little low, the dealers have uncertain finance arrangements. You can easily negotiate a reliable and profitable deal with the person for your favorite vehicle. Usually when markets move slowly, people are more interested in removing the vehicle from their showroom than earning extra profits.
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Insulate Yourself Against Falling Value Of Vehicle: Purchasing prices for the first hand cars may be low today, but what about tomorrow. Credit crisis have longer impact on markets which equally affects the resale value of used cars. The best way to secure yourself against such risk is to go only for those brands and models that have evergreen repo in market. With respect to Indian market, it is advised to go for Maruti Suzuki, Honda, Mahindra, Tata, as well as Hyundai cars. Most of under Rs.10 lakh models of these brands have proved their worth in resale car market since the beginning.
