What Should You Look For When You Opt For A Car Loan?

author image Thursday 17 March 2016, 11:34 AM Car-Finance

Narrowing down on the car of your dreams has becoming quite easy these days, thanks to the great number of choices available from every manufacturer. With car financing in India too available rather freely, getting the car into your parking lot isn’t all that tough either. What is tough however, is getting the financing at the best rate & at the most favourable terms possible.

What should you look for when you opt for a car loan
What should you look for when you opt for a car loan

To those wondering about the answers to what should you look for when you opt for a car loan, read on below:

Ø  Do your homework. Before you walk into the dealer’s lot, spend some time getting to know the exact situation of your finances. Speak to your advisor, or, if you are the self-taught type, then go through the financials one more time. Check your credit history, take stock of where you stand with respect to existing borrowings, etc. Car financing in India has become heavily dependent on financial intelligence & the credit rating plays a key role in deciding the lending rate, and other terms with respect to the loan.

Ø  Shop around for the best deal, for even 0.25% variance in the interest rate can mean a difference of thousands of rupees to be repaid over the tenure of the loan. Some people are able to leverage their relationship with the existing lenders, while others end up getting a better deal from the outside. The key is to get the most benefit out of the lending agreement.

Ø  Car financing in India works beautifully for those who can contribute a larger sum towards their dream wheels. Watch how the interest rate & the loan terms get better, the moment you share with your lender the news that you’re willing to fork out a higher amount as down payment.

Ø  Hidden charges such as processing fees, administrative charges, depot rates & their ilk are what should you look for when you opt for a car loan. In most cases, these are levied at the discretion of the lender & can be reduced/waived off completely, if the cards are played out right.

Ø  Given the large sum of money involved in the case of a car loan, it is crucial for you, as a borrower to ensure that everything is to your satisfaction. So make sure you know what to look for in a car loan.

Research & educate yourself in all the nuances. Take someone knowledgeable along, if possible. And in the end, remember that no matter how the deal goes, the car is yours to enjoy for many pleasurable miles on the open winding tarmac!

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