Buying a car often involves a lot of money. However, there are a handful of those who can afford to pay such huge sums to bring home their chosen sedan. If you too have been eying a car but don’t have the funds to buy it, consider getting a car loan for the purpose. However, to ensure that you choose the right one, here are some tips to remember:
· Check and compare finance schemes: Different banks and financial institutions offer different finance schemes with varying interest rates and discounts. You may even find some car dealers, who have tied up with financial institutions or banks to offer you such loans. With so many schemes to take your pick from, it becomes important for you to check and compare a few shortlisted ones to make a wise decision.
· Evaluate loan features: You should assess factors like interest rates, loan term, reputation of the lender etc to ensure that you get a good deal.
· Go for a higher down payment: If you can make a larger down payment, you will end up paying less on account of interest rates. In case you don’t have the money to pay such a huge sum, you may consider taking a small personal loan to use the money for your car’s down payment.
· Be careful to take note of the fine print: Read the fine print of your loan document carefully to ensure that no additional fees are charged, which you might be unaware of. There are many instances where people don’t look into the fine print related to establishment fees, early repayment fees, annual fees or additional charges for defaulting on a payment. So, read carefully to avoid problems in the future.
· Get car insurance: You can get insurance for your car, thus reducing your risk greatly, especially if some unfortunate incident were to befall you. In such cases, the insurance will effectively lessen the trouble, which might have otherwise been a big burden on your family. Some lenders may even insist on getting disability insurance or life insurance to ensure that the applicant’s family is able to repay the money should something untoward happen to the main applicant.
So, follow these tips as mentioned above and you will find that lack of funds no longer hold you from laying your hands on those coveted car keys. After all, it’s a delight to drive your own car!
Summary: If you are thinking about getting a car loan, read about some tips which can help you make an informed choice. Remember – lack of cash in hand doesn’t mean that you can’t buy your sedan since different banks and financial institutions offer loans for the purpose.