How To Get The Cheapest Car Loan?

 With a long list of fees and charges, along with various terms and conditions, it becomes difficult to choose the most appropriate car loan

Owning a car is a dream come true for many people. A number of customers choose car loans to finance their vehicle. However, it is often a difficult process, considering the various options available in the market. If you want the max savings and benefits, here is how you can get the cheapest car loan.

Increase the down payment - Not all banks and lenders will lower the interest rate on car loans if you pay a higher down payment. However, if you search properly, you can find a lender that can lower the interest rate based on the down payment amount. There will also be other benefits when you make a higher down payment. For example, your EMIs will be lower. The car loan could also be approved much faster.

Improve your credit score - If you have a credit score above 750, you will be in a better position to negotiate lower interest rates on your car loan. Credit score can be improved by paying off your debts. Also, you can check to find errors in your credit report and get them fixed.

Look for processing fees, prepayment charges - When choosing a car loan, it is essential to check out the processing fees and prepayment charges. This varies from bank to bank. Car loan processing fees can be a fixed amount or a percentage of the total loan amount. In the case of prepayment charges, some banks have zero prepayment charges whereas others have a fixed percentage as prepayment charges.

Loan tenure, 100% financing - The longer the tenure of the loan, the lower will be the EMI amount. However, a longer car loan tenure also means that your total interest payment will be higher. Based on your available finances, you can choose accordingly. Another way to save your money is to choose lenders that are offering 100% car loan financing. This will ensure that you do not have to pay anything from your own pocket.

Consider car loan offers from public sector banks - In many cases, you can find slightly lower interest rates with public sector banks. However, the car loan processing time can be longer and you may have to submit a lot more documents. In comparison, private banks can offer you a faster and more hassle-free experience. The same is applicable for NBFCs, although interest rates and processing charges could be higher.

Utilize special offers - Carmakers, in association with their dealers, often have special offers during festive season or year-end period. For example, the interest rates could be lowered and processing fees could be waived off during a specific period. You need to actively look out for such offers. There can also be special offers for specific groups such as women, state / central government employees, etc. If you or your family member is eligible, you can access car loans in an economical manner.

source; newspatrollling.com