A lot of people opt for a car loan from the dealer whose showroom they are planning to purchase a car. While this is a convenient option, it is not necessarily the best option. Banks typically dish out a whole range of subsidies, freebies and discounts that are available to customers who shop around. This is why it is so important to go to the market for competing offers. WHEN BANKS COMPETE YOU WIN. You never know how many accessories you might be eligible to get either free of cost or at substantial discounts not to mention potential discounts on the interest rates initially quoted. So the next time you take a car loan, make sure that you are getting a sweet deal in totality:
- Lowest Interest Rate
- Discounts
- Free Accessories/ Extended Warranty
The 7 step process to get the best car loan deal
1) Fix the loan amount and loan tenure first and ask everybody to quote EMIs and fees and charges for that loan amount and tenure.
2) Compare the options available from the dealer to other options provided by the lenders active on Apnapaisa
3) If the car you are buying has discounts available negotiate separately for the discounts in cash to be adjusted against your down payment requirements. Don�t accept discounts in terms of accessories as they are overpriced and have very high dealer margins.
4) Stick to a fixed rate loan unless the floating rate option is at least 1% cheaper than the fixed rate option.
5) Other things remaining the same choose the loan option that has a the lowest pre-payment charge
6) If you are trading in your existing car for a new car negotiate separately for the price of the old car and separately for your new car. Remember if you have not claimed anything on the car that you have sold you can transfer the no claim benefit to your new car insurance policy where you can save thousands of rupees.
7) Separate your car insurance need from the car purchase. Remember if you have not claimed anything on the car that you have sold you can transfer the no claim benefit to your new car insurance policy where you can save thousands of rupees. Car insurance premiums are negotiable so make sure you negotiate hard and compare with options available from Apnapaisa providers. This can save you thousands of rupees.
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Date : 14 Apr, 2009 Question Hello sir i have taken car loan from SBI, in oct 2008. and now i am intreste to pay some mor ruppes than so it is possible? Answer You will have to talk to the bank to restructure your loan since you want to pay more EMI. |
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