How to buy your dream car by effectively using a Car Loan?

How to buy your dream car by effectively using a Car Loan?

Fatima just received her first paycheck and she knew exactly what she wanted to do with it – get her very own car. She was however disappointed to know that the amount was a bit low, even for the small used car that she looked to buy. That is when her brother told her to apply for a car loan. She took the suggestion and applied for a used car loan. The loan was dispatched quickly and very soon she was behind the wheels of her very own vehicle. Car loans help many people like Fatima to achieve their dreams. If you too have a dream vehicle in mind, apply for a car loan today and make the dream a reality.

Things to remember while getting a car loan

It is very easy to get a car loan nowadays. However, you should be careful and aware of all the factors associated with car loans before you apply for some. Some of the most significant points to note are:

• Keep the interest rates in check: Before you opt for the car loan, check the interest rate being offered to you. You should be able to get the rate at a lower interest if you have a good credit score.
• Look beyond your bank: Banks have been the traditional loan providers in India for decades. However, you should definitely look beyond your bank when exploring the car loan options. Many NBFCs also offer car loans at attractive terms. You may just find a better deal with them.
• Get the right kind of loan: You can get a used car loan or a new car loan. Depending on the vehicle you are planning to buy, apply for the correct type of loan. Read through the loan clauses carefully to ensure you are making the correct application. This will lead to your loan getting approved and processed in the shortest possible time.
• Choose a practical EMI scheme: You may be in a hurry to close your car loan, but do not opt for an unreasonably high car loan EMI just for this. Your EMI should be affordable so that you can clear the loan without any hiccups on the way.
• Make pre-payments when possible: If you suddenly come in possession of a large amount of money in the form of a work bonus or an inheritance, look to close your car loan or at least pay off a large chunk. This will lower your debt burden and will also help you to save money in the form of reduced interest payments. Try to do this whenever it is possible for you.
• Understand the fee structure: Every car loan provider charges certain fees from the borrower. These include the processing fees, the administrative fees, the late payment fees, prepayment fees, etc. Read the documents very carefully and understand the fee structure. If you feel unsatisfied about the fees you have to pay, speak to your loan provider. If the issue is not resolved, apply for the car loan elsewhere.
• Look for deals and discounts: Car loan providers often offer discounts and deals that help you get the loan at low-interest rates. You can even get a customized car loan if you negotiate well with your loan provider. So rather than getting the first car loan that you come across, dig deeper and see what better options are available to you. Here too, you may just end up making a winning deal if you choose an NBFC over a traditional bank. So do explore all your options before finalizing the car loan of your choice.

Keep these suggestions in mind when you go looking for either a used car loan or a new car loan. You will surely be able to get the best loan at the best rate.

The final word

Car loans are a true blessing. You can buy your dream car instantly with a car loan. You can also pay the loan back on your own terms, provided you are disciplined and serious about the repayment. Once you take care of these things, you can own and drive your precious vehicle without any worries. Explore the different options you have and find an ideal car loan right away. Then all you have to do is walk over to the showroom and collect the keys to your very own vehicle with pride and happiness.