With a ton of new cars being launched in the previous year and a lot more waiting to be introduced, this is a fantastic time for buyers. No matter what the price-point, intended usage and preferred body-style, there’s a car out there for everyone.
Tips to get the best interest rates on your car loan
Barring a niche segment of buyers, the rest of car buying folks tend to fund their car dreams through financers. So here’s a few handy tips to get the best interest rates on your car loan:
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A buyer who comes straight to the dealer for finance is setting themselves up for an expensive deal. It is better to check with your preferred banking partner or a stand-alone financer to see if they can offer a better bargain.
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Once you’ve got the rates from your preferred financer, then reach out to the dealer and see if they are willing to offer a more favourable deal. Remember not to push things beyond this though, for even the dealer/financer deserves to make a bit of money out of it.
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If you’ve taken a loan in the past, then make sure that the repayment is on track or the dues have already been cleared off. This makes it easier for the lender to offer you a loan on more favourable terms.
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A car is the most significant purchase one makes in life. So if you can get a few extra thousands taken off the sticker price, it would automatically reduce your borrowing, thereby improving chances of negotiating a better deal.
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Most new cars are financed on a three-five year period. The shorter payment duration will get you to loan-free status quicker, while the longer term could ensure that the monthly outgo remains manageable.
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Get online and start shopping. These days, most lenders pass on their savings from traditional sales channels & offer better terms for online customers.
- One of the most important tips to get the best interest rates on your car loan is to read the fine print. Ensure you understand all terms mentioned in the documentation & that there are no grey areas whatsoever. Else, anything that you save in ‘so-called, low interest rates’ you’ll end up paying dearly over time.
That’s it then, happy loan shopping!
