Car symbolizes the status of a person. Right from the time one bags his first job, he is always dreaming of the car he would buy. Although in some cases, finance finds another way to trickle out of pocket and buying a car may seem like a far fetched thing. Added to that, it is always a huge challenge to find the right car. Therefore, it would be best to contemplate on the payment options that are available to you. You would be required to weigh the different pros and cons, prior to heading out. It is much more than negotiating the price of your vehicle. Examine and explore your options of car finance to get best deals. It would be vital to understand your personal credit and the various lending options as well.

You want a car – that’s for sure. While you can keep your search on to get the best car finance in your budget, you could work in parallel to get finance approved for the car. Yes, there are institutions which pre approve loan based on your income and expenses. So you will have to produce a few important documents to the bank or finance company that you are availing the loan from:

  • Bank statement for the last 6-12 month
  • Photo proof
  • Address proof
  • Tax paid or income report
  • Photographs are some of the things to be kept ready to surrender to the finance company.

Focusing On Your Savings

Go for financing option from reputed finance companies and the one who gives you loan at the least rate of interest.

Managing finances:

  • Availing finance for everything is a bad habit.
  • Always ensure to keep a good track on your savings. This would also prove to be of great use, during an emergency.
  • You might also consider using your savings for depositing for your biggest investments as well, such as, purchasing a home.

Contemplating On Payment Options

  • Cash is always the best way to buy a car. However, this option would be applicable only if you have enough savings.
  • Another factor to consider would be Personal Loans. This may seem to be the cheapest way to borrow over long term, but be aware that you will be paying a humongous amount as interest.
  • Car leasing would also prove to be another beneficial option. However, this is more like a long term rental process. Here, you may be eligible for tax benefits.

Things To Remember

There are certain major things to remember prior to taking out a solution for car finance arrangements. In order to get the most out of your car, always ensure to prioritize major factors.

  • It would be extremely vital to compare your interest rates by referring to Annual Percentage Rates.
  • Think prior to purchasing payment protection insurance or other similar kinds of insurance covers.
  • Repaying early or exceeding forecast mileage would eventually charge you with a fee. Therefore, by keeping such factors in mind before availing loan.

Affording Your Payments

It would be important to work out on what you can afford, before moving ahead. Auto Loan Calculator will help you know what will be the EMO you will need to pay month on month and by how many months you would have repaid the loan etc. This way, you would be able to estimate your monthly expenses and payments. You would also be able to make out your affordability rates for different cars. From adjusting length of loan to down payment, you would be able to figure out each and everything in details. 

Published by Derek Lotts