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3 Things to take care before taking a Car Loan

Tags: loan car loan

There are a lot of things in life which you desire to have. We are always told by the society, what does a successful person look like? The answer is, he should have a great job, an own house, a beautiful wife and an awesome car. An awesome car! This is every person’s dream. The moment you get out of your college after completing your studies, you dream of buying a car. Car which can help you commute; help you build a good status in the society, and many more.

About couple of decades ago, buying a car was not an easy task. Back then there were a lot of restrictions on car buying policies and also there were limited options available in the market. Remember those days when someone in your colony used to have a car?  And we all used to admire the person’s luck of owning a car? Well, today that’s not the case. You can buy a car within no time. There are a lot of options in the market in terms of cars as well as ways to own them. One of the ways is going for a car Loan. Different car brands and dealerships offer a lot of buying options to make life simple while making a car purchase. There are different banks who give you attractive loan offers to buy your dream car. ICICI car loans can help you with best car loan options with minimum documentation and easy loan process.

Once you make a car choice, you will proceed to the loan formalities. But how do you know if taking a loan is the only option or there are other options available? If taking a loan is the only option, is the dealer referring you to the best lender in the market?

We will highlight the three things to take care of before taking a car loan,

  1. Do your own home work

Buying a car is still a dream for many of us. If you are definitely sure of purchasing a car, always do a thorough homework. Many people rely on the car dealers for the entire car purchasing process, which is wrong. Once you make a car choice always ask questions to the dealer like who is their home lender and what is their car loan interest? if their lender is charging more than market standards you can always go to your own bank and opt for a loan with ease. Inquire which insurance are they offering and from which insurance company, if you think the premium is higher than market standards, you can go ahead with your own insurance lender. This way you can save a lot on bank processing charges, interest rate and also the insurance premium.

  1. Get your financial status verified
  2. Getting a loan for purchasing a car is kind of a long term commitment. Check your financial status before you make the purchase if you can make the payments on time. Check if your cibil score is at its best so that you can get the best deal in the car loan market. If you have any personal loan or a credit card payment pending while buying a car, it will hamper your chances of loan sanction. Make sure you have made all your payments on time so that the loan process goes smooth and ends well.
  3. Understand the tenure of loan

Many people opt for a longer tenure, so that they can make their payments more affordable. Do not make this mistake! As the car is a depreciating asset, you will be paying a lot of interest for a product which is losing its value from time to time. Always go for a smaller tenure which can help you close the loan as soon as possible so that you can be the titled owner of the vehicle in no time.

Getting a car these days is like purchasing a pencil box for your kid, but what comes next is something we should take care of. If you are final on getting a car, try considering pre owned cars which comes cheaper than a new one, also the car depreciation will not dig a bigger hole in your pocket.

The post 3 Things to take care before taking a Car Loan appeared first on Credit Sudhaar Blog.

This post first appeared on Credit Sudhaar Blog - Tips To Improve Your Credit, please read the originial post: here

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3 Things to take care before taking a Car Loan


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