How to Get the Best Car Loan For a New Car

In India, it is only the rich and famous, or, those who have been saving their pockets over long periods of time who can afford to buy a car without the loan factor. It is indeed a delight to see the new car key in your hand. The only sad part would be to pay for the car. This article will help those in search of the best option to finance their new automobile. You can then drive around in your new car being sure that the best loan deal has been yours.

Buying a car in India is considered to be prestigious even today. However, there are a few facts that you need to be aware of before purchasing your dream. Getting a car loan becomes a major concern during the purchase process. It is always nice to borrow just the amount that is required. The entire amount has to be paid back and with interest. Lesser the amount borrowed, lesser will be the interest that you will have to pay. Make as much down payment as possible.

Buying a popular model is advisable. Not only will the after sales service and maintenance costs be low for these cars, even loan rates are usually low. Buying an old offbeat model will only invite the trouble of paying higher rates for processing, interest and any other process.

Go in for an on-road price auto loan. It is certainly better than the ex-showroom price loan. If you consider the loan on the on-road vehicle price, registration charges, insurance, road tax are all included. On the other hand, it will be difficult when you go for the loan at the ex-showroom price. All the remaining charges will have to be borne by you. All this will be in addition to the down payment. So, a little care while choosing the right auto loan will help reduce the burden.

Nowadays, car loan providers just wait to pounce on the car buyer trying their best to convince him that their loan is the best. Do not fall into scams. But at the same time take as many car loan quotes as possible. It can be done online from the convenience of your home. When you have enough quotes, you can choose the best out of the lot. Choose the one with the lowest interest rate and EMI.

Banks and loan providers always give more importance to individuals who have a good record of paying back loans. When they are sure they have a strong customer, they do not really mind waiving off the processing fees. For the loan provider, getting the trustworthy customer would be more important to them than the processing charges. So, keep this in mind and use your best negotiation skills.

As mentioned earlier, beware of scams. There are many loan providers who offer more offers than anybody else. Their main intention, however, would remain attracting you into the trap. With hidden charges, you may never be able to repay the loan and may lose a lot of other belongings too. Borrow your car loan from a known lender.