Buying a car is one of the few special moments which one cherishes’ lifelong. While buying a new car is a dream for many, but, sometimes due to financial constraints, we are not able to completely pay for the car. Also, there are many lucrative options available today, which ensure that you don’t have to pay the entire amount at once, rather you can pay in the easy monthly instalments.
Yes, I am talking about buying a car on finance. It may be little daunting to buy a car on finance, and manage the EMIs for a couple of years before you can fully own your car, but, if you take care of a few vital things, it won’t be as difficult experience as many believe it would be.
Here are the top 6 things which you must know about buying the cars on finance:
The Down Payment
If you are not purchasing a car outright, and are planning to get it financed, then it’s imperative to consider the amount of down payment you are going to make.
While there is a minimum down payment which is mandatory to make, so that you are able to buy the car, but, one should try to increase the basic down payment amount by as much as possible. If you make a higher down payment, you would be able to save on the interest that you have to pay for the loan amount. Remember, the lower the loan amount is, the lesser interest you would have to pay.
Consider Personal Loans
When you specifically choose the car loan, you are required to keep te car in the name of the financing company which is funding your car. This implies, till you pay your last instalment, they will have partial ownership rights on the car.
On the flip side, when you take the personal loan, the car is completely owned by you, and personal loans are usually the cheapest way to finance a car. However, you need to ensure that you have a good credit rating.
While buying a car, you can also seek the offers from the manufacturer finance. Most people don’t prefer the dealer or manufacturer finance, because their offers are too complex to understand and quite impossible to compare. But, if you put in a little time and do your homework correctly, you can sometimes fetch very attractive deals.
Most of the manufacturers offer an array of options ranging from leasing to hire purchase.
Yes, it may sound inappropriate while buying a car, but, it works. While you are working on the car finance deal from your finance, you can compare the interest rates from other dealers, and negotiate with your won dealer to crack the deal.
If you approach in a right way, and carry out negotiations smartly, you would be able to save a lot of money. But, it’s important that you carry out the market research well, and are always ready with the right facts before beginning the negotiation.
If you are still in a dilemma about different things, and have a lot of concerns, you can check the independent advice and car buying reviews here.