Getting a car can be so exciting. What about paying for it? Not so exciting. The car buyer had to have enough cash in the pocket to buy one. Thanks to the car loan lenders, these days we can all afford a new car. This article tells you how to get the best car loan rate on your new car.
Do you have any loan that is still pending repayment? It’s better to pay it off first. You will not want your new car loan application to be rejected or the loan rate affected badly because of the previous loan. If there’s more than one such loan and you are not able to repay it immediately, consolidate it. Try to fix all financial issues that can affect the car loan.
See how much you can afford on your new automobile. The remaining goes as the loan amount. So, plan accordingly. Use the car loan calculators or EMI calculators that are available on most web sites. Fill out the form for online car loan quotes available on these web sites. Collect as many such quotes as possible. Go in for the lender offering the lowest loan rate and the lowest monthly EMI. Do not forget to consider your bank as an option to get the loan.
There are certain loan types that allow you to make low monthly payments in the beginning but gradually increase the amount. A low cost in the beginning need not necessarily mean that the loan is a low-cost loan. Before finalizing the new automobile loan deal, calculate and discuss in detail with the lender the interest you are going to pay. Think of the whole term of the loan and not just the first few months where the interest may be low.
There are times when new car buyers have more cash than what they pay as down payment. Remember, a low down payment means a higher loan amount. This leads to a higher interest. Also, the interest rates in some cases vary with the loan amount. So, do not take additional amount of loan unnecessarily. Borrow just the right amount.
At times, car loan lenders want to know about the fate of payment in case something happens to you. In case you have life insurance, have the details handy. It may help. As mentioned earlier, do not stick to a single lender. Look for as many lenders as you can. Do it all online from the comfort of your home. The more you research, the more you may benefit.
It is best if you find a lender who is flexible with the terms and conditions of the car loan. During the loan lender research process, see if you can find someone who will let you make extra payments or make the entire loan payment without any penalties. There may be a time when you can pay off your car loan at once. But, this option would be good only in case the interest or at least a part of it gets waived off.
Last, but not the least, beware of hidden terms and conditions. Do not get fooled by blindly offering your signature. Read through the documents carefully, understand what is written and sign the papers only if you are fully satisfied.