Choosing A Car and A Matching Car Loan
Apurva Shree
May 26, 2007
Remember the day you had seen the shining Audi in the showroom and you said to yourself- “someday, I will buy that car…” Finally, the day has come- you are now earning well enough to afford a car called “Audi”. Well, almost… Need a car loan? Of course, you do!
Here are some simple tips for a getting a good deal on car loans that can make you sail through the purchase like a pro.
Choosing An Auto Loan
You have chosen the car. Now, you need to choose the best auto loan! There are many points you need to look out for while opting for that low interest rate car loan.
First, you need to narrow down on the amount of money you are willing to shell out as a down payment. After you have done that, its time for you to look out for the financial institutions which will approve your required loan amount.
Let us start with the basics points you need to look at while deciding about car loans…
Interest rates – Interest rates depend on various factors. The type of car loan you are taking- Fixed or floating, the tenure, the amount, your credit ratings, etc. The interest rates again vary between banks too- but you can expect competitive rates within your city limits.
Term of the loan – Yes, you cannot just choose the number of years you will take to repay the loan. Banks usually have packages from which you can choose, though. Car loans usually have a term of between one and five years. There are some with seven-year tenure too.
Other fees, Service charges and fines – Read behind the lines of the contract before you sign on the dotted line. Clarify if there are fines for late payment, early payment, annual fees, and customer services charges.
Repayments – Enquire about the repayments or the EMI- monthly, half yearly or annually.
Auto Loans from Dealers
You can opt for a loan from the dealers too. However, be careful, dealers are usually notorious for charging exorbitant interests and early payment fines. They may make it look very convenient and fast. You will end up paying 3-4% more for the car than what you would have done if you had taken the best auto loan from a bank. Think twice before you sign up for a dealers car loan.
Your Lifestyle
It’s understandable if you are looking for a instant car loan. You just can’t wait for that car. However, on the personal front, before you opt for the car loan look at your financial condition very carefully. Will you able to repay the loan without affecting your lifestyle negatively? Look at the other financial commitments you have or are likely to have in the next few years. Marriage? Children? Education? If you are taking a gamble and going for an exceptionally high car loan- think honestly, is your job a steady one? Does it offer growth prospects soon? You do not want to end up with a poor credit rating after your purchase!
Ideally, you should plan your purchase and the auto loan or car loans 6 months in advance. This will give you time to work on your credit ratings and conduct some market research too.
Going for a car loan? Need to know what are the points you should pay attention to while choosing the best car loans? Low-Interest-Car-Loan.Info offers simple tips and information on low interest car loans and on how to plan your finances before taking an auto loan.
Here are some simple tips for a getting a good deal on car loans that can make you sail through the purchase like a pro.
Choosing An Auto Loan
You have chosen the car. Now, you need to choose the best auto loan! There are many points you need to look out for while opting for that low interest rate car loan.
First, you need to narrow down on the amount of money you are willing to shell out as a down payment. After you have done that, its time for you to look out for the financial institutions which will approve your required loan amount.
Let us start with the basics points you need to look at while deciding about car loans…
Auto Loans from Dealers
You can opt for a loan from the dealers too. However, be careful, dealers are usually notorious for charging exorbitant interests and early payment fines. They may make it look very convenient and fast. You will end up paying 3-4% more for the car than what you would have done if you had taken the best auto loan from a bank. Think twice before you sign up for a dealers car loan.
Your Lifestyle
It’s understandable if you are looking for a instant car loan. You just can’t wait for that car. However, on the personal front, before you opt for the car loan look at your financial condition very carefully. Will you able to repay the loan without affecting your lifestyle negatively? Look at the other financial commitments you have or are likely to have in the next few years. Marriage? Children? Education? If you are taking a gamble and going for an exceptionally high car loan- think honestly, is your job a steady one? Does it offer growth prospects soon? You do not want to end up with a poor credit rating after your purchase!
Ideally, you should plan your purchase and the auto loan or car loans 6 months in advance. This will give you time to work on your credit ratings and conduct some market research too.
Going for a car loan? Need to know what are the points you should pay attention to while choosing the best car loans? Low-Interest-Car-Loan.Info offers simple tips and information on low interest car loans and on how to plan your finances before taking an auto loan.
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