New YearYou begin the process with the enquiry with the lenders. Then negotiate with them to get the best interest rate.
08 Dec 2010
Welcome Twenty Ten!
Now that you are equipped with New Year resolutions, you are raring to move onmove literally in your new swanky Car.
This is one resolution which all of us want to fulfill as early as possible and for that we start all out search for the make, model, colour, price, fuel economy, budget size and other related features. Advice from family and friends are free toppings. And you are confused to no end. You can resolve your confusion clicking on reputed price comparison engines where you get price and features of any model available in the market under one roof. Here you can compare price and other product features to your complete satisfaction.
Now that you have zeroed in on the car that you want to purchase, the next logical step is to do the budgeting of the car and for that you will require loan. Here you get a cold feet as many of us find going to a bank for a car loan quite cumbersome. But nowadays it is not at all difficult and mostly dealers have tie-up with the banks. It is important that you compare interest rates offered by various banks so that you get the best deal by choosing lender of your choice.
There is some paperwork involved but it takes a lot less time than a home loan.
You begin the process with the enquiry with the lenders. You need to get in touch with as many lenders as possible and get them to make loan offers to you. Then negotiate with them to get the best interest rate. Check if there are any special offers. After you have got all the banks to make their offers to you, select your lender based on the information you have in front of you.
Now that you have finalized the lender, it is time for bank's agent to collect documents supporting proof of income, residence proof, and identity. You may be required to produce copies of IT returns, salary slips, bank statements, passport, driving license, and other relevant documents. These requirements vary from lender to lender.
After submission of documents, it is time for field investigator to visit your home to double check the facts provided in the documents, such as your place of residence, tenure at work place, and so on. It is essential that you are present during this visit to clarify any query that the investigator might have. Otherwise, the investigator might not get all the facts clearly and could report that the facts you provided do not actually add up - thus forcing the lender to reject your loan application.
As proof of identity, you can furnish your passport, driver's license, voter ID, or PAN card. Any one of the above documents with your photograph is proof that you indeed are the person you profess to be. These documents are valid if you reside at the same place as entered in the above-mentioned documents. If you stay as a tenant, different from the one mentioned on your ration card, passport, or voter ID, you can produce utility bills (electricity or telephone) of the place as proof of residence.
For income proof, salaried people need to submit their latest salary slip, Form 16 for the last financial year, and their bank statement for the last 6 months. Self-employed people need to provide their IT returns for the last two years as proof of income.
Once the lender is satisfied with your documents, the loan is approved. The lender then disburses the amount through cheques or demand drafts (DD).
The process is complete, but there are a few things that you need to keep in mind before you drive away in it. Ideally, you should have two checks on the vehicle - the pre-registration check and then the pre-delivery check. Both these checklists consist of the same check points. The idea is to ensure that the car you choose is the car you drive out of the dealership.
Read the papers properly. Make sure all the blanks in the contract are filled in. Your paperwork should include: Sales certificate, All payment receipts, Registration Certificate (RC) or temporary registration certificate, Check if insurance is adequate, valid, and active, Check for original pollution under control (PUC) certificate valid for one year. Besides check spelling of your name.
Also check that Owner's manual, Warranty card for car, free service coupons, warranty card for battery, tyres and all other accessories, extended warranty details (if opted for). Check roadside assistance contact details, dealership and service personnel business cards.
If any payment formalities still remain to be completed, carry along the relevant post-dated checks (PDCs) or cash or credit card.
If you have a preference for a particular day / time (for auspicious reasons), inform the dealer well in advance. Always take delivery in broad daylight, since artificial lighting or insufficient lighting at night can be misleading.
So which day could be better than Republic Day when whole nation will join you in the celebrations of your new car.