How to choose the Best Car Loan?
Choosing a car to buy is an exciting thing to do as well as challenging. It's a task to buy the best car with all the features one can have in a limited cost. The other thing which comes with buying a car is, getting a loan. Financing is available from so many banks and NBFCs. Getting the information about all the financing options can be overwhelming and tiresome. There are many other factors which are necessary to make a decision about the financing.
Don't worry guys we will help you
to make it an easy job.
Financing from the auto dealer
While getting your car financed,
don't be reliant on the car dealer. We know it seems easy to get a loan without
making another trip but it might hurt you in the long run. A car dealer might
be duping you in order to get a commission from the financier. So always look
for other options while getting a loan.
Focus on the total loan amount
and not the monthly payment
When getting finance we generally
look at the monthly payments. It's alright to calculate the installments to get
an estimate. Now the monthly installment discussion should be put on hold. The
most important thing is to calculate the total interest to be paid on the
money. This makes it sure that you end up paying less money as interest.
Try to get the best deal
When looking for a loan, don't
just stop at the next place you find a better deal than the last one. This is
not how one should find the loans. You are about to pay your hard earned money
to the bank so the interest should be as low as possible. And let the financier
know that you are shopping around for the loan and you already have a better
option in hand. You are more likely to see a better offer.
Interest Rates
The interest rates provided by financiers could vary greatly from one to
another. The interest rates could be of 2 types, "fixed rate" and
"floating rate".
A fixed rate gives a satisfaction
of a fixed installment and you can be sure that it will not end up in a shock.
One of the best fixed and reducing interest rates is provided by HDFC Bank when
it comes to a car loan. You can compare the interest rates for HDFC bank car
loan, ICICI car loan, etc. online. With a floating rate, there is always a
chance of decrease in the interest rate but there is an equal chance of
increase too.
Prepayment of the loan
The car loan you are going for
must have a prepayment option with no prepayment charges. Though, this option
is available mostly at floating rates of interest. But one should always check
the charges on the prepayment of the loan. It should be as low as possible if
any.
And if there is extra cash lying
in a bank account or as an investment, compare the interest on that investment
with the loan interest. The idea is to pay the loan early if the interest
earned on the investment is less.
Thoroughly read the terms and
conditions
While getting your car financed
always read the conditions in the fine print. If there is any clause you don't
understand, ask the financier. And get it confirm that the financing is not
conditional or contingent. If the financing is "contingent" or
"conditional," the financier can change the terms and conditions
later and you could end up paying more. So please read the papers carefully.
For more info :- New Vehicle Loan Winnipeg
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