Posted by Admin
Buying your first car is always an emotional decision,. As you get to accomplish an asset in your life with own rewards. The decision is extremely crucial and as a responsible buyer, you obviously wish to get the best possible deal on a car loan if you are going in for one. Here are some useful tips on car loan negotiation to grab the best deal.
1. Negotiate the cost of the car, not your monthly installments (EMI).
When you have selected a dealer and are ready to set the loan thing,then for the whole process one sales representative get assigned to you who will assist and convince you that he is on “your side” and ask you questions like “how much you are willing to pay each month?” or “what would you like your monthly payment to be?”. But before you are getting trapped into his glitches, make this concept very clear that you need to bargain on the price of the car, not over your installments.
Always remember that each dealer makes a good margin on the sale of each car. The best way to get your car on lowest price needs some efforts from your side as you need to do to approach multiple dealers for the same car and check out the best price of the car on offer and not who is giving you the maximum EMI. At the end of the day, if the total price of your car comes down, so does the amount of your loan.
2. Choose your own lender
Many times a car buyer goes with the loan that the dealer offers in partnership with banks where they end up investing out a lot more than usual. So a car loan process needs proper research. You need to Compare the car loan rates of various banks and check your own eligibility. The most popular car loans in India are HDFC car loan and SBI car loan but don't go with advertisement just make things according to your needs and you will be sorted.
3. Always choose the best rate of interest
Car loan interest rates are an important factor to look before taking a car loan. Whether you decide upon x bank or y bank for car loan but choose the best lender who can offer you the loan at best rate. A credit score of over 750 makes you eligible for the best interest rates as a higher CIBIL score gives you the power to negotiate the rate of interest with your respective lender.
4. Short loan tenure is the best choice to choose.
Beware your lender may try to distract your attention by offering various schemes for lower EMI. Bear in mind that the lower your EMI goes, the higher is your loan tenure. So, you need to keep in mind that a car is a depreciating asset and loses value every year. A five-year term Loan is the best tenure for opting any car loan.
5. Do not fall into the trap of add-ons
Do you know that most of the profits that car dealers make come from the add -ons? Like Extended warranties and other rusting sealing painting of your car may cost cheaper if you take in the aftermarket if you feel the need to get it done . If you include these add -ons from your car dealer then you are making your car purchasing highly profitable your car dealer resulting a run for money to yourself. Thus if a dealer is trying to get you to include add-ons to your financing, say a polite no!
Now that you have gathered all your information regarding the best car loan.so always Keep the above mentioned factors in mind and it will help you make a better choice!