How to Access the Best Deal for Your Car Loan in the Current Economy

Best Deal for Your Car Loan

Everyone has an opinion on the current economic trends. From reaching a GDP level of 6% to rising inflation, our economy has survived tumultuous phases. Ultimately, it’s the consumer who has to suffer the brunt of the downturns. Unfortunately, car manufacturers are also facing the heat of the inflation as the common man’s car becomes dearer. The solution – opt for car loans that defer the cost of the car over a period of time. The next question concerns its likelihood. Considering the fact that RBI has increased the rates for lending, interest rates are expected to go up. Don’t raise your eyebrows just yet. There is hope for all those seeking a car loan, especially from varied sources.
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Despite the surge of offers available, car manufacturers are finding it tough to woo all customers. Expanding on additional features within the car and better finance facilities seem to be the most attractive option for customers. These days, we find a plethora of advertisements from popular car manufacturers appearing in newspapers and mobile phones. It’s almost criminal to refuse the offers when they offer unmatched discounts and amenities. Chances are that most car enthusiasts have already compared interest rates from different sources to guide their decision for a car loan. And since RBI has changed its lending policy, there is no definite way of judging whether banks have increased their car loan rates, as well. Car buyers should not hit the panic button just yet, here’s a look at how one can get the best car deal for their dream car.
I. Compare the car loan rates of banks and other finance companies: It is always a good practice to compare rates of interest before you sign the dotted line. Analyze competitive interest rates, the terms and conditions for repayment, eligibility conditions and other factors in order to choose the right one for you.
II. Choose a car loan from an understanding agent: This does not mean that one should select a banking agent who does sweet talks. Instead, look for one who gives you a variety of options for your banking needs such as offering better loan terms according to your eligibility criteria. Consider factors that work well for you personally in terms of the term-period for repayment and the rate of interest.
III. Taking a car loan from a manufacturer and a finance company: Several prominent car manufacturers offer good car loan deals from finance companies under the same group, more specifically under their captive finance company. Usually they offer attractive discounts and amenities, along with specific car manufacturers. Sometimes, one finds irresistible deals while choosing a finance company that falls under the same group as the car manufacturer. Even if you do not want to choose the cars offered by that finance company, you are more likely to get better discounts from them than the banks.
IV. Keeping track of the current trends: Reading up on the latest economic trends and the policy decisions made by the RBI on a monthly basis can help you with your loan selection. One of the factors that contribute to bargaining well when it comes to picking any car deal is being aware of the current economic trends. This way, you will be able to judge whether you are getting a car loan at a lower or higher car loan interest rate.
Getting a whiff of the prevailing bank interest rates is always favorable in getting a better car deal. Do not hesitate to check the rates and the terms offered by various non-banking financial companies. Chances of getting a better deal from these institutions are higher. At the end of the day, the choice of a car loan is ultimately dependent upon the car you choose and your financial capacity.
For more details on car loans visit www.mahindrafinance.com/car-loans.aspx
About the author:
Anupama Sughosh , an independent financial blogger
Disclaimer: The views, opinions and investment tips expressed by the author are her own and not that of the website or its management linked within the document. We advise users to check with certified consultants or experts before venturing into any investment decisions.