Here are 4 tips to focus on before availing a car loan:
1. Negotiate the car price
It is generally overlooked, but the simplest way to trim down the car loan is to negotiate the car price you are seeking for. Dealers have a sizeable margin on each fresh unit sold. So do check the car prices across various dealers and check out the offers available on it. In the end, the price of the car goes down resulting in a drop in the amount of loan required.
2. Look for the best rate for loan
As you look for the best price for the car, you should also look for the best deal possible for the bank loan. Often the dealers discourage the buyers to seek a loan from other banks, but in a majority of cases, the loan deals provided by dealers are not the best one in the market. So do visit various banks for the best rate for a car loan before you land up paying hefty interest on the car.
3. Eye on the credit reports
Keep a check on the credit reports. There may be some discrepancies due to which the bank is charging a higher rate of interest. Go through the credit report and if you detect such discrepancies get in touch with the credit rating authority and sort it out. The credit score also helps to gauge financially where you stand.
4. Select the shortest loan tenure that fits your pocket
Financing a set of 4 wheels has become easy but you should not go for a longer tenure for repayment of the car loan. The longer the term it will reduce the monthly payment but it will also boost the total cost of the car