Planning to buy new car? Buying a new car can be extremely emotional decision. Especially when you are buying your first new car. Maybe it is passion or love towards car and as a prospective buyer, you might be expecting best possible deal on your car loans when you are planning to gift a new car for yourself. Here in this article, we will be sharing few useful tips that will help you to negotiate on car loan.
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Things to Consider before Buying a Car
Check out some of the important points that helps you to get your dream car without any hassle and difficulties, where other people unknowingly fall into trap by salesman.
Negotiate Car Price, Not EMI
When you have found your dream car and ready to buy it, you will be taken to sales person who helps you to do your car loan and further help. He might also give you the best friendly advice based on some questions like how much you can pay each month, what is your monthly salary etc. But before you gets impressed with that salesman, you should take a step back.
Don’t fall into trap where your car price becomes subject to your payment capability. You should always try to negotiate car price. Not your EMI. You should think that each car dealers keeps handsome margin on each car sale. So best way to do is ask quotation from multiple car dealers for the same car. So that you can compare car price and find the best deal on your dream car.
Find Best Money Lender
Most of the time, we have seen that from where we purchase our car, they ask us to take a car loan from their partnered bank. They says they will easily approved with their partnered bank, but the thing is that dealers have partnership offer which banks. Which end up shelling out lot more than they would have to had.
If you opt for car loan, make sure you research the interest rates in the Market. Compare car loan rates from various bank with your own eligibility. After that, go with the best one which offers you good benefits and approve your car loan. Don’t go for where dealer suggest.
Opt for good rate of Interest
Car loan interest rates is the first thing to consider before you buy one car for you at loan. Your credit score above 750 helps you to find out the best interest rates as higher CIBIL score gives you the power to negotiate the rate of interest.
Opt for short loan tenure
Also don’t fall into traps from the car dealers who ask you to pay lowest EMI every month. Keep in mind that, the lowest amount you pay each month as an EMI, your loan tenure will increased. Try to decide the best possible EMI that you can pay each month from your salary or savings, so that you can get debt-free within minimum time as possible.
Here in this article, we wrote in details about the things that you should keep in mind before buying a car at loan and choosing best lender in the market. Share your views in the comments about this article. Have you ever applied for car loan?