How To Make Smart Financial Decisions When Buying A Car Overview
The car market in India is very hot right now. Every brand that deserves their stamp of manufacture is launching their best product, hoping to get a slice of the buyer's financial pie.
Add to this a comfortable lending environment, where lenders ensure they make the financing process as easy and smooth as possible, and you'll have a situation where it's easy to find the car of your dreams. Here are some tips for making smart financial decisions when buying a car
- The first thing to consider when buying a new car is to weigh carefully, if you can afford to buy a new car. We mean, not only in terms of actual procurement costs, but also in terms of the overall program. You see, it's relatively easy to bring your dream car home. However, once it's yours, you'll have to pay to maintain it to make sure it stays in top shape while you own it. So, make decision smartly.
- Today, the convenience of auto finance makes many buyers complacent. Some people fell in love with the old lowest-rate game and ended up paying dearly for processing and other up-front costs. Others went into longer loan terms just to get the next stage of a car, It was only later that they realized they had misestimated their financial capabilities.
- Buyers who make informed car financing decisions always weigh their options. Using their existing relationships with lenders, they shop around to get the best, not just the lowest EMI, but the lowest total down payment. Before entering into an agreement, they examine the fine print, looking at every detail. An important aspect that most new car buyers overlook is checking available deals. Therefore, it is important to go through all the options in the city before locking the deal.
- Another tip for making an informed auto financing decision is to allow yourself to have the best aspects of your buying experience. For example, most buyers don't know that they can easily save up to 40% on new car insurance without going through a dealership.
- Parts sales are another way dealers and buyers are often misled in choosing parts when buying new cars. Purchasing these products through trusted aftermarket supplier can easily save 20-80% on original cost.
- Finally, most cars that are 3 to 5 years old have a lot of life left in them. Often, you can recoup a fraction of the cost of a new car and enjoy it for a few more years. So sticking with the old one may be an option. Ultimately, everything depends on individual needs and one should always decide accordingly.
Benefits of car loan against FD:
- If you take a regular loan to buy your dream car, the interest rate on a car loan is much lower than a fixed deposit.
- Since fixed deposit loans are secured loans, car loan interest is reduced by 2-2.5% as compared to normal.
- Compared to traditional loans, this type of car loan ensures that you get cash without breaking your lease or paying high monthly payments.
- You can get free from the processing fees for this type of loan from most of the Indian's bank.