Plan to buy car and spend time on research to get best deal on it. Do you know, a similar research is required on car finance too. It saves money and gets you quick processing of loan.
Plan to buy car and take it on finance. Buying a car involves comparing new car prices, features, reviews n hot discounts as offer on it. Similar is car finance which involves more than 70% of the component of car to work upon the interest rates, pre payment clause, charges, turn around time for approval and disbursement and most important the lowest deal.
Car finance in India is offered by more than 25 leading banks and Non Banking Finance companies which controls 90% of market share of the auto finance market. Start on the finance, by making a comparison on primarily 4 factors – turn around time for approval and disbursal of loan, interest rates, documentation and hidden charges like pre payment charges, loan processing fees.
The best way is to inquire online or send an offline enquiry to couple of leading banks, you will soon be flooded with there offers and deals. Ensure to read the fine points in terms of other charges so as to able to make apt comparison. If you have a descent repayment track record with good CIBIL score, chances are that you may tend to bargain for a better interest rate with the respective financier.
If you are a corporate, then may also think of leasing option which can prove economical to you keeping tax benefits vis a vis car finance. Moreover, maintenance of car would also be hassle free as the leasing company takes care of same for the lease tenor.
Car finance, should not be ignored as a part of research while planning to buy a car. A car like Honda City, having interest rate difference of 50 bps – 100 bps can cost you over Rs. 15,000 for a 5 year tenor in terms of extra interest outflow. The deal and negotiation and research been involved in buying a car, similar effort to be put in getting the best deal on car finance. Remember, car finance is part of service sector and been the number of financing institutions are so high, they all want there piece of pie in terms of higher volumes. Be aware that negotiation is a part in car finance and a deal can be customized basis requirement of customer
Second hand cars has higher interest rate as compared to new car finance and also has lower funding amount due to risk nature of lower resale value in India. Also, one can determine loan eligibility and emi through car loan emi calculator available online.
