How To Get Best Car Loan Interest Rates?
Owning a car is a dream for most of the people, much similar to that of owning a house. Anyone who wants to buy a car may not have ready cash with them. Therefore, it is essential for them to take a loan from any bank or financial organization who grants auto loans to eligible customers. However, they should be careful while choosing a car loan. Please read below 10 tips for getting the best deal for a car loan:
It is best to choose the car first:
You should first choose the car you intend to buy, as the interest rate may vary from car to car.
Visit banks or financial institutions:
It is advisable to visit banks or non-banking financial companies with which you have already made any transaction. This is because, they might be reliable and can be trusted.
One should compare car loans rates online:
A car loan seeker must visit the websites of all financial companies who offer car loans, and compare their rates and features to know which one may suit you, so that you can avail the best and cheapest deal available.
It is better to know credit worthiness before applying for a car loan:
Anyone who wants to apply for a car loan should first check his own financial position & credit worthiness, so that you can choose the car loan which will suit your pockets, without burdening beyond your financial limit.
Bargain and negotiate for best rates:
The car buyer must negotiate the EMIs and the interest rate of the loan offered against down payment. He also can negotiate processing fees of the car loan, which can even be waived in certain conditions.
It is wise to check carefully the auto loan offered along with the car:
Often car dealers offer auto loan along with the purchase of a new car. However, it is found that these loans happen to be costlier than that offered by other banks or financial companies. Therefore, a customer should apply for the cheapest car loan available in the market.
If the add-ons increase the interest rate, then it is better not to accept them:
Often several add-on services are offered along with the car loan by the car dealer, but these add-ons increase the interest rate considerably. So it is best to avoid such service offers along with a car loan. If at all the customer needs any of these add-ons, he can look for a cheaper version of car loan from any other financial company.
The customer should not be in much hurry to buy a car loan:
The car loan buyer must spend enough time to compare all the interest rates available in the market and also go through all the loan documents carefully, so that he may not be deceived by any means while getting a car loan.
It is wiser to opt for annual interest rather than monthly one:
Often the loan dealers offer monthly interest scheme, but it is seen that annual interest proves to be cheaper than monthly payments. Thus, it is best to compare both the rates and then accept the best offer.
One should avoid conditional financing of the car:
It is wise on part of the car buyer to avoid any offer of conditional finance from the dealer before finalizing the loan deal, like the settlement in down payment amount, interest rate or term of the loan, as the loan terms may get changed by the dealer later, if not mentioned in the papers.
Therefore, you must opt for a car loan after careful negotiation and consideration.
Source: Responsible Lending, Bank Rate, Rediff.
Hi, Mani Karthik here. Having lived in USA, India & Middle East, and worked for big MNC’s to startups, I have a lot to share with you. My aim is to help people, by sharing everything I’ve learned in life, through this blog. It’s read today by more than 150K people world over! I currently live in LA, California and visit India occasionally. Here’s my full story on who I am and why I blog. Connect with me on FB, Instagram, Twitter or WhatsApp (+001-408-489-4785). Happy to help! 🙂