Articles

Browse Articles  »  Automotive  »  Some of the Best Ways for Financing a Car

Some of the Best Ways for Financing a Car

by Maruti Suzuki True Value Consultant
Car buying requires careful planning and a lot of patience and effort. With these three things, you can end up finding the best car for yourself within your budget that will meet your budget and needs. There are various things that need to be considered while buying a car, whether it is a brand new or a used car. One of these elements is financing. You should finalize your budget before buying a car. Nowadays, a car loan is considered the best financial instrument to avail funds for purchasing a car. With a car loan, you will be able to buy a car of your choice. You can repay it in monthly installments. Most importantly, you are free to choose the repayment tenure and the EMI amount.

But if you are planning to buy a used car, you can find some trouble in getting the car loan approved by a bank. Often, the interest rates for used cars are relatively higher and are provided for shorter terms. However, this does not mean you will not get financing for a used car. Here are some tips with which you can easily find a car loan for used cars in Bangalore, Chennai, Pune, Delhi or anywhere else: 

Get Aware of your Credit Score:

Try to maintain a good credit score. Your car loan application will be easily approved with a low credit score too, but it would affect the interest rate. Low interest rates advertised by various dealerships are mainly for the people with a good credit score. A person with a low credit score will be charged more. 

Compare Financing Quotes 

You should collect quotes from two or more companies which are ready to approve your car loan application before settling with any one company. You should be very careful while choosing a bank or auto finance company to get a car loan. Compare the amount of loan they are ready to provide, the loan repayment tenure, and the interest rate of two or more companies before signing any contract to find the best deal.

Keep Loan Tenure Short 

It is always advised that one should try to keep the loan repayment tenure short to save a good amount of money that they will be paying as the interest rate. Though the loan offered for longer period seems more relaxing, it will cost you much more with increased interest rates. In a shorter loan tenure, your monthly EMI will increase but you will end up by saving more money in the long run. By paying off the loan in less period, you will be paying less interest over time. 

Pay More in Down Payment

The best way to save money while purchasing a used car is paying 20% of the car price as down payment. By paying more money as down payment, you can decrease the loan amount. This will decrease the repayment amount and the interest. This will help you in saving your hard earned money in the long run. 



Sponsor Ads


About Maruti Suzuki True Value Freshman   Consultant

7 connections, 0 recommendations, 36 honor points.
Joined APSense since, July 24th, 2019, From Delhi, India.

Created on Aug 24th 2021 04:24. Viewed 277 times.

Comments

No comment, be the first to comment.
Please sign in before you comment.