Things you need to know about car loans

Buying cars have now become easier, thanks to affordable car loan options. With easy EMI and zero down payment schemes, cars have now become accessible to common man.

If you too are planning to buy a car, there are these things that you must know before entering into a purchase contract

1. Not every company offers same car loan options.

2. Every bank sponsoring the car loan has different criteria

3. Each banks car loans options are different, with a difference in the rate of interest and down payment.

4. Not every car carries zero finance, easy EMI scheme

5. Car loan options at car showrooms is different from that arranged by your from outside

Only after you have attained all information regarding the above points, then make an informed choice.

I will tell you more, two months back I purchased a new car for myself. And it took to be one month to gather all information. And believe me, it was worth that much of effort.

I almost went to all showrooms that were within 15 km radius of my home. It is important as you will have to go a number of time to that outlet for many formalities; so, the near the showroom the better. Then I called different banks to know their car loan options (remember each bank offers car loans at different rates) so comparing is very beneficial to get the loan at best rates.  

Another important thing that you should know before buying a car is car accessories. Yes, it is important that you know whether your car comes with all accessories or you have to get them from outside vendors or is it bifacial to get it from outside vendor?

Many cars, especially top variants come fully loaded with all accessories. But it might fall outside your budget, as it was in my case.  For this, you might know that car stereo system, car seat covers, and matting all fall under car accessories.

Although the salesperson will try to convince you that getting car accessories from them buy paying extra will be very good. But it’s not the truth.  If you buy car covers from outside vendors, it will almost cost you half the price, secondly, the music system outside is much cheaper as well as the matting.

Car seat covers are not covered under the manufacturer’s warranty. Shocked! Yes, accessories like car covers and car matting do not fall under the purview of car warranty by the manufacturer. So even if you buy it from them or get it yourself from outside, it hardly makes any difference.

At times the outside vendors who sell car accessories tend to provide you the warranty on the products they sell, and this is a much better deal.

What I did was, I bought the second variant from the top, got the music system and car covers from outside. And this saved me around 50 grand.

Believe me, it’s far better to get car accessories from outside, even if you buy your car through a car loan. Only if you are buying a fully loaded luxury car, then that’s a different situation altogether.