While opting for a loan on your new car, good decision-making and research skills come handy. Yes, it is very important to choose the loan with the lowest interest rate and low EMIs as well. This article guides users in making the right decision.
Car dealers, along with the car sale, will try to burn your pocket for free. They will hypnotize you into going for a loan through the same dealership. Stay away. The dealer gets his hands full while drilling a hole in your pocket. He gets a big extra profit. When the car sales are very low, dealers offer you the best deal if the car is financed through them. They are likely to get zero profit without the loan factor attached to the deal. This goes to show the enormity of the amount going into their pockets. Be careful!
There’s something more about car dealer loan offers. Many people in India feel that getting a loan from the dealer is the most convenient. It saves us the hassle of running around from place to place. Many dealers offer zero per cent financing which is another great attraction. There are many terms and conditions here. Even if you qualify, you will have to compromise on the discount that you could avail otherwise. Calculate now and you’ll know that you are paying the same price. Most of the time, the zero per cent financing is just a marketing gimmick used by dealers to attract car buyers.
Though very rare, we do find dealers offering genuine offers on new car loans. In this case, after a lot of calculation, you may go ahead with the loan. However, be careful to never bow down to the dealer. Do not compromise on your terms. Go for it and sign the loan papers only if you’re fully satisfied with the deal. Keep the terms and conditions written in very small fonts in your mind.
To get a competitive rate of interest on your new car loan, it is very important to study the rates in the market. Interest rates change very often and you need to do your homework well. It is very healthy to get car loan rate quotes from as many lenders as possible. Go for free, no-obligation rate quote services and you can end the conversation then and there with lenders offering not-so-good interest rates. Doing this also saves you lot of time. All the work can be done online.
Once the quotes are ready, choose the loan with the lowest interest rate. Going in for a loan from your own bank is also a safe bet. The rate may be slightly higher. However, since you are an existing customer, the bank will certainly lower the interest rate. You are likely to save on the processing fees and other extra charges as well. Getting a trustworthy customer who will sincerely pay back the car loan is more important for banks than the extra fees.
Before approaching any new car loan lender, however, you need to be very sure of your financial state. Knowing where you stand financially and having an idea of the amount you can afford, negotiation with loan lenders becomes easier. Very often, lenders try their luck at increasing interest rates by telling you that your credit history does not look good enough for a new car loan with a lower interest. Know where you stand and the process becomes simpler. You can get a competitive rate on your new car loan more easily.
The key to new car loan shopping remains “compare and save”. While comparing loan rates hardly takes some time, you can end up saving thousands in your wallet.