Best auto loan
For most of us, buying a car of our own is a dream, the only other bigger dream being maybe of owning a house. This dream is coming true for many of the people, with the banks offering the option of easy financing for the car purchasing . In fact the market today is flooded with loan offers and a little decision making can help one to get the Best auto loan .
Car dealers often advertise promising easy financing to people inklining them towards making a decision of buying a car. Advertisements professing a car buy for an extremely minimal amount, Rs .10000 for instance, are very common to be seen and they are often promising Best auto loans . Asking you to pay this minimal amount every month and promising you the car in return does sound exciting enough, especially for the hot-blooded, younger generation, in a hurry to become proud owners of everything they dream of . But is the offer really as exciting as it sounds?
Make sure to do a cross-check with the dealer before deciding anything. Do not just jump on the offer thinking it to be the Best auto loan s . The offer is not free from clich"> The offer promises you the same monthly amount for the car, but the initial down payment required would be huge . Even if you agree to manage it somehow, what about the interest rate of this so called Best auto loan s ? Interest rate quoted is found to be cheaper than those of home loans . Instead of whooping up with joy, know this that this lesser rate of interest is actually in lieu of the cash discount that you could have otherwise received . Here, the complete picture emerges.
Car financing is thus considered to be one hell of a complex task because of the financial dealings between the car dealers and the banking. In order to save you from many of their tricky terms and conditions, and so as to provide you with the maximum benefit, here I will be mentioning a few pointers that you need to check for before agreeing to buy your car .
The fist step for you to do is finalize the car that you want to buy, since the interest rates vary according to the car you want to buy . So a 5% interest rate might be available on a Santro, but an Octavia might be available to you only on a 15% rate of interest . The second step is to decide upon the amount of the loan youll apply for . In case the car costs Rs. 5,00,000, and the initial down payment requires you to pay Rs. 1,00,000 which you are willing to pay, the amount you need to apply for loan is Rs . 4,00,000. The loan amount would also be dependent on the kind of interest rates you get . Search the market then for the lowest quote for the decided loan amount and for the decided car. The one offering you the lowest rates or the Best auto loan should be zeroed in on.
The processing fees can be easily negotiated with and waived. Thus, this becomes an important step to do in order to save some of your money. Negotiating the cash discounts also helps. Every car dealer offers some discount on every purchase . Though the dealers will offer to reduce your EMI instead, simply stick onto to getting a cash discount. At times, the dealers also tend to offer some car accessories in place of cash discounts . Never go for such offers and insist on your cash discount. Once you get the cash discount, you can try and negotiate with the dealer to provide you with some of the car accessories free, like car mats etc . and last step is to claim your no-claim bonus on the cars insurance policy that is if you have a claim-free record on your old car . Following these steps will surely help you get the best price in town for your car . So go, make your dream come true the smart way!!
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