Other than home and education, a new car is the next biggest thing that can extract a considerable part of your wealth and income. Here are two simple ways to pay less for your next car:
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Benefit Of Long Term Plans: In terms of models, always try to adopt a long term plan. If you are planning to buy an executive sedan car wait for at least two years post its launch. It can help you save thousands of rupees. The time period will also help you in knowing the flaws and features and actual performance of the car. And may be in next two years, you may get a used model of the car in new condition, less than 50,000kms driven, and around 20 per cent less price. There are ample number of banks that have started offering loans for pre-used cars as well. The depreciation on the car will help you save money on your next car and get the most reasonable deal.
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Benefit Of Short Term Plans: In terms of auto loans, always follow a short term plan. Nothing else will benefit you more than this. It must be slightly difficult to pay higher EMIs on initial basis but will be a wise decision on a longer basis. Paying a small down payment and then facing large installments for long term will extend the payment period than the depreciation value. If you don’t pay the EMIs sooner, the value of your car might reduce to even less than 10 per cent of the loan amount. So, the rational way of solving this problem is to finish the pay back within first 24 or 36 months. Another way of saving money on your new car is to take the car on lease and keep paying smaller amount from time to time.
