Car Loan Rates EMI 2018 271 views
There are two ways to buy your dream car either by paying the whole price or get its possession on loan. But as people generally buy cars on loan, we will discuss the hassles that you may go through with the same. Having the car loan can be a very tedious exercise with a whole lot of paperwork involved in the process. Not only this, the complicated buyer information combined with a series of formalities can bring unwarranted risks, which would adversely affect your finance. Dealers will always tell you to take loan for longer tenure to reap the benefits of higher interests and other ill deeds. But you must not fall into such trap and follow a list of tips stated below to diffuse the malicious intentions of the dealer when you buy the car from them.
- Apart from ex-showroom price, you need to pay for insurance, road tax & registration, extended warranty. But the dealers tend to overcharge you on all such expenses.
- Get the road tax amount verified from the local RTO office or its website.
- Compare the insurance amount quoted by the dealer with other companies online.
- Go through the insurance policy in detail to check how much coverage it is providing.
- Get the car insurance from a familiar company if you feel unsatisfied with the existing insurance policy. Dealers may desist from selling you the car if you do not buy insurance from his/her insurer. In this case, you can make a complain to the manufacturer and change the dealer if needed.
- With proper scrutiny of all the charges noted above, you will be able to save some valuable money while cracking the deal with the dealer.
- If you can afford a bit higher equated monthly installments (EMIs) on car loan for a shorter period, then you must do it to avoid excessive interest outgo. The dealers will try to convince you to go for a higher loan tenure to gain maximum interest from you and siphon off your pocket.
- Ascertain your repayment capacity before availing the various car loan option and don’t get tempted by 60 month repayment period told by lenders.
- You can always be tempted to buy an used car because of the reduced price. But the interest rate on such cars will be much higher than the one on new cars. Interest rate on used car loan ranges within 15.50%-20%. While on new car, interest rate remains 9.5%-15%. So assess your viability before taking loan on such cars.
- Do not make cash deposit and instead go for credit card as you can always negotiate on credit card charges in case you face any problem.
- Before negotiating the deal, make sure you check your credit score so that you can prevent any manipulation from the car dealer. As a result, you will get a good car deal.
- Do check the online rates of the car to crack a good deal with the dealer.
- Dealers try to sell older model cars in the first quarter of the year to dispose off the stock pile that might have been there at the end of the year. And if you want to buy a new car, make sure you ask for Form 22 issued by the manufacturer, wherein information like Vehicle Identification Number (VIN), manufacturing date, chassis & engine number will be shown.
- Checking for any disconnection in the speedometer, wire tapering, scratch marks in dashboard screws and instrument cluster, wear and tear on seat and pedals will help you defeat the malicious intentions of the dealer to sell the damaged car.