Today’s fast-paced life calls for the need of a car. Owning a car is not only an easy and comfortable transportation means but also a status symbol in our materialistic society. With many companies in the automobile sector, the competition is tough with new cars being launched every now and then. The financing companies are not far behind. They too are coming up with good offers and deals for the customers and are giving a competitive rate of interest and easy EMI options. The borrower can also get oneself a personal loan and finance a car for self, but car loan is a much better option. While getting oneself a car loan, there are few factors which needs to be kept in mind to get the most stellar loan deal. When taking a car loan, avoid the below-given mistakes.
1. NOT SELECTING A LOAN WITH SHORTER TERM
When buying yourself a car loan, people usually go for a long tenure of loan to make the monthly payments shorter. However, this is not a viable option as the borrower tends to pay a lot more in the end. To maximise the benefits of car loan, one should opt for the comfortable and shortest term so as to minimise the excess interest. Loans Jagat provides an excellent platform wherein the borrower can compare different lenders along with the rate of interest on offer, calculate EMI and choose the best deal for self.
2. NOT SHOPPING FOR BEST CAR LOAN DEAL
The biggest and most common mistake which one makes is looking for the best car for themselves instead of a good financing deal. People choose the car and then go for the financing options. However, it should be the other way round. First and foremost, the prospective car loan applicant should do is his homework and thorough research about the various deals on offer from Banks/ NBFCs/ Private lenders etc. Also, usually the buyers are up for the dealer financing options. The buyer should look for all the available options in the competitive car loan market and grab the deal with the maximum benefits in terms of rate of interest and other requirements.
3. CONCENTRATING ONLY ON EMIs
For repayment of car loan, the lender will chart out different EMI options for you with varied tenures. Some loans may look more appealing with shorter EMI amounts and long duration of the loan, but in the long term, they tend to take more from the borrower’s pocket. It is important to understand that a small amount of EMIs are attractive, affordable looking and reasonable but not certainly the best option. Be smart in calculating the overall interest rate which you are paying in the end and see the broader picture. Don’t just make the final call on the basis of EMI amount only.
4. CHOOSING ‘NO DOWN PAYMENT’ OPTION
Many car financing companies have their marketing strategies wherein they lure the customers to get their dream car without paying anything from their pockets. The offer certainly sounds very interesting. One should be taking an informed decision while getting a car loan. Zero down payment, in the beginning, means more interest to be paid on a higher number of EMIs. One should always chuck out some amount as a down payment from their savings or personal loans and try to take as less amount as car loan as possible. One must not forget that car loan too is a liability which needs to be paid off in time every month. Also, one must take into account the additional fees and other hidden charges which comes along the car loan.
5. GOING BY THE GUT
While buying yourself a car, however clear and sorted you are about the financing option or the car which you wants to buy, the smart salespersons always sweep you to push your limits and go the extra mile and spend over your budget. Sometimes, one is too excited to buy a car that they are willing to spend more. One should be wary of this gut situation when getting a car loan. While taking a car loan or a personal loan, it is important to keep the emotions in check and think logically. Fintechs like LoansJagat helps you choose the best lender for financing your dream car.