7 Facts To Consider When Buying A Car This Festive. This is a tome for impulsive buying. Many people spend a lot of money during the festive season with twice.
Interest Rate
When you take a loan, the interest outgo is one of the vital deciding factors. The interest rate you would pay depends on a variety of factors: type of vehicle you wish to buy on loan, your credit worthiness, risk profile, tenure of the loan, whether you’re a salaried individual, self-employed, among other things.
Processing Fee
Buying a car loan does not stop with just interest rates; there are processing and other charges levied by lenders. The processing fee is the one-time fee charged as a certain per cent of the loan, but capped at an ‘x’ amount. Some lenders levy a fixed processing fee.
Loan Tenure
The maximum tenure for a loan car is usually between 5 to 7 years. A higher tenure can reduce your EMIs, making repayments comfortable, while opting for a lower tenure increases your EMI.
Repayment Flexibility
Assess if the lender provides you with the flexibility to repay your loan sooner, and at what cost does this come at. This flexibility can help you prepay the loan ahead of time, as well as provide a relief in distressing times. However, it’s best to adopt financial discipline in order to repay loans on time and maintain your financial health in the pink always.
Customer Service
You want to buy your dream car with a smile on your face, don’t you? So, ensure that the customer service at the lender has high standards. This service can even help keep track of your loan, allow you to be in better control of your personal finances.
Keep Your Family In The Loop
When you’re planning to avail a loan, make sure you discuss it with your family. Sharing your rationale with them will keep them well-informed and their opinions will help you gain a better perspective. Even it is a surprise, keeping your family in the dark may not be in their best interest.
Terms & Conditions
Make sure you read the terms & condition carefully to make an informed choice. This will avoid issues later and ensure a pleasant, hassle-free experience.
