Car financing through car loans is extremely popular in India. This popularity has taken a giant loop in the last decade. With so much demand, there are too many sellers now and the offers they roll out are sometimes too good to believe. People now have the option to take car loans to finance new cars as well as used cars.
Lot of leading banks and Non-Banking Financial Corporations are now offering car loans for the purchase of new or used four wheeler vehicles, three Wheelers as well as two Wheelers. With a plethora of choices all around, the customer is often puzzled as to which option is the best from all of them and used car loan interest rate is usually giant than the new car interest rates.
It's also very important to note that the profit on the sale of one car is considerable for the car dealers, therefore, getting a discount has a very good possibility.
Here are a few points you can consider to get a concession while financing for a car through a car loan -
Good credit score:
A good credit score in the range of 750-850 means that you won't even have to look for a discount because a lot of lenders would already provide you with the best deal they have. Such a decent credit score means that you had been a very good borrower in the past and you had repaid your loans on time which makes lending you the loan less risky.
Not so easily moved colour:
you want a discount on a car, you can easily get a good discount on those colours of the model that are not preferred by people generally, this is because those cars are difficult to sell and who would want their product to not get sold?! Therefore, if you go for a less popular car colour, you have a very good chance of getting discount.
Not so popular model:
Car Models that are not very popular are also very easily discountable since people refrain from buying them and the car dealers would not want those models to stay in the showrooms forever. Therefore, you can readily get discounts on them.
Negotiate well:
People think negotiating in case of a car loan is not possible but that's a myth. Car dealers earn a decent amount of profit on each car's sale therefore you can get a good amount of discount if your negotiating skills are good enough.
Loyalty Bonus:
Suppose you are having an Alto k10 and now you want to buy a Hyundai I 20. If you buy the new car also from the same dealer, then you can ask for a loyalty bonus. There are chances that you will get this before even asking for it.
Cash in hand:
Upfront cash is always appealing to any lender, if you give a more down payment, there are very good chances to get a good discount on your car.
Check for car loan interest rate HDFC here.
Buy during festival season:
Lenders offer unimaginable discounts during festivals such as Eid, Diwali and people buy a lot during the festival season too.
Avoid extended warranty:
Cars usually come with a warranty of one to two years. A lot of dealers would ask you to get an extended warranty and charge a good amount against it, try avoiding that as they are very choosy with what they cover under warranty and what not.
Avoid dealers accessories:
Dealers have filled their showrooms with trendy accessories to lure customers into buying them. They usually offer these accessories at a higher rate than what you will get at other stores.
Compare compare compare:
There are a lot of options available these days and before doing a thorough research, it's not very smart to buy a car. You might be missing on an unthinkable deal if you haven't researched we'll. Therefore do a proper, detailed research and then go for buying a car. These are a few very helpful points to note if you want to get a good amount of concession on your next used or brand car's purchase.
Read More:- Employability For Car Loan
