We all want to own our dream car and buying one has become easier more than ever. Today, with the easy availability of car loans, buying a car has become hassle-free. However, there are certain things you need to keep in mind when you are looking for a car loan. So, here are 6 smart tips to get your car loan approved.
Just as you search for the best offers for your favorite car, you have to follow the same process for your bank loan as well. Most of the times, the car dealers have tie-ups with the banks for offering certain car loan, the bank will also convince you to buy these loans and you end up buying these loan trusting the bank. Moreover, the dealers will also encourage you buying a car loan from the banks they have tie-ups with, but in most of the cases, the loan offered by such dealers are not the best.
Avoid Buying Accessories From The Dealer
Only buying a car may not be the end, as most of the times, there are various accessories that add on to the overall cost of the car. When we talk about accessories, it can be a car stereo, car mats, central locking, etc. If you are taking a car loan, then you will also have to include the price of these accessories as well and the subsequent down payment you are able to make for your car. Make sure you avoid buying accessories from the car dealer since the the dealer will charge you more as compared to what car accessory shops are offering.
Use Negotiating Skills
Negotiation is one of the common and easy ways to bring down the cost of the car loan. Every time a dealer sells a new car, he tends to enjoy a significant margin, so you have a better chance of getting attractive discounts. Act smart and approach different dealers and make sure you have checked different offers and discounts offered by all of them. Finally, if the total price of the car reduces, this will also reduce the amount you will be needing as a loan.
Go Through The Terms And Conditions Carefully
It goes without saying that you have read the terms and conditions thoroughly. Things such as prepayment charges, interest rate, and various other related things should be carefully read. It is important you are well-aware of what you are getting into and the knowing the terms & conditions of the car loan is important before you go ahead and sign on the dotted line.
Try And Choose Shorter Loan Tenure
Whatever you do, make sure you don’t stretch your car loan tenure unnecessarily long. Remember, a car loan is not a productive debt and you should make your best efforts to repay your car loan as early as possible. Yes, you will have low EMIs if the tenure is long, but if you can afford it, make sure you opt for a loan in the range of 3-5 years. This will mean that the outgo in terms of interest will be much lower.
Keep A Check On Your Credit Reports
When you have made your mind of taking a car loan, make sure you have also checked your credit report. You may come across discrepancies in your credit report that can affect your credit report. Owing to this, your bank can charge high interest rates from you. If you somehow find any issue with your credit report, make sure you have contacted the rating agency to deal with this matter as soon as possible. When you are well-aware of your credit profile, you also get to know as where you actually stand financially and ensure your bank doesn’t charge irrelevant interest rate from you.
Hi, my name is Ankita Dixit, I am 27 and I am a professional writer. I started writing from young age and most of my writing skills and knowledge are self taught. Currently, I am working as a professional writer at Paisa.co. I have write on various topics including travel, motivation, finance, technology, credit cards, insurance and entrepreneurship etc.