Did you plan to buy a car for long? The car ownership is an enjoyable experience, but you need to invest a large amount for buying a car. In this regard, you must rely on the car loans and you must choose the best deal for your car online. There are many banks and private lenders available online that can provide you the car loans at minimum rate of interest, and you can easily apply for their loan through their official website. But before you choose the final deal, you need to consider their rate of interest, processing fees and other hidden charges.
5 Tips for Getting the Best Car Loans
Finding the Right Deal
While you are buying your car, it is really important that you find a dealer who has a pretty good relationship with the bank and can offer you massive discounts on the finance deals. But before you agree to the deals make sure you know all about the charges and the costs of the car loan. Apart from the interest rate, you need to check the processing fees, pre-closing charges, late fine and part-payment options.
Approach the Existing Banker
Are you in good terms with some bank? Then you can approach to your bank to disburse your car loan because banks can provide you the most secured financial deals. The best thing is if you already have an account on that bank and you can easily apply for the loan through your existing account. You bank can provide you attractive offers on car loans and you can also negotiate with your bank manager to reduce your rate of interest.
Check the Eligibility Of Your Car
Not all cars are eligible for getting car loans. For example, if you are buying a second-hand car or a pre-owned car, then not all banks will agree to finance your car. So, make sure you always consult the bank about the loan before you decide to buy a car because only few banks and private lenders can provide your car loans on pre-owned cars. So, it is better to remain safe than to find out later and regret it.
Ensure That Your Credit Score Is Good
For an individual to get car loans, he or she should have a good credit score, a minimum of 750+. If you have good credit score, then you will get the car loan at less interest rate. It is better to check your credit score and if you find any disputes then repair your credit history to apply a fresh car loan. So, you pay less just because you have a good credit score in your name.
Get the Exact Amount
There is a lot of difference between on road price and the ex-showroom price of the car. So, if you are not sure about the exact amount of the car then you must ask to your dealer and get the detail quote from the dealer. Then you can apply for the loan based on this quote. The best part is that you can get car loans for as much as 3 cores. But it depends on your credit history and repayment capacity. You can also check your loan eligibility, rate of interest and find out the exact EMI on the online loan calculator.
These 5 tips will help you in the long run to choose the best bank for your car loans. So, before you fix your mind on the loan from a bank, check out these points, and then choose the best deal to fulfill your dream.