Summer is just round the corner and the new financial year is also just weeks away. Some of you may be planning to buy the new car. You shall be able to get a good deal with little research and evaluating the best offer for you, since many banks offer special deals.
Zero down on the car
This has to be the first step towards getting the best deal. Today, there are multiple options from various car manufacturers in the segment that you wish to pick up a car from. You must first find out the offers being extended by the manufacturers. There are times when one may be offering benefits like free insurance, extended warranty, free servicing for longer period, complimentary accessories etc. This can make the offer quite lucrative. Then a few manufacturers also offer “loyalty discount”. This is extended in case you have in past owned a card from the same manufacturer. You must also evaluate the features of the car that suit your needs. There are players who may be offering a better loaded model on features at a better and competitive price. So deciding on the car make and model is quite important to be able to get the best deal.
Evaluating the offers
All the offers then shall be evaluated against the price point offered by the dealers. Here it is not about choosing the make and model, but about choosing the dealer that you would want to pick up the car from. Since a lot of dealers offer extended benefits to the buyers, this must also be an integral part of your evaluation process one you have decided on the car.
Looking for best rates
Car loan interest rate on same model and make of the car can vary from bank to bank. There are times when the banks offer preferential pricing which is far lower than the rate which is being offered by competitor lending institutions. This is because the manufacturer gets into a collaboration with a particular bank. One may be skeptical on the rate of interests being offered, since they can be substantially lower, but these are actual offers and in most of the cases are applied on reducing balances only.
Contact your bank
It may even be a good idea to check with the bank that you already have an account with. They may be in a position to better the offer from other banks owing to the long standing relationship that you have had with them.
Ensure you have a good credit score
This is an important factor that would help in getting the best car loan offer. Any lending institution will run an inquiry on the credit bureau to check your repayment history on the other facilities that you may have sought. In case of any issue, the loan may get rejected and you would be looking out for the loan for low CIBIL score. The fact also remains that the error rate on the bureau reports is quite high. As per an estimate, it is as high as 25%. Not having the trade lines getting updated on the repayments to the extent where the loan not taken by an individual also making part of his report are quite common and can make the credit profile looking bad. Check the credit report must be done before applying for the loan.
Must have the margin money in account
While there can be offers like 100% funding, it is always a good idea to keep the margin money ready, if the offer is not available.
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