Cut down your auto loan by Rs30,000-Rs50,000!

By | April 2, 2011

Yes this can be possible. By zeroing on the best car loan deal and insurance policy you can cut you’re your car loan amount by Rs30,000-50,000. Just by looking around in the market as to what rates are the cars being offered can give you a pretty much good idea. Obviously, your salesman will give you an attractive deal on those shining and well polished you see at the car showroom. But what you have to understand Is that , the sales person will be earning about 2% commission on the car.

Try to negotiate and bargain hard on the interest rate at which the car is being offered to you. If your efforts seem futile, try to negotiate on the processing fees or legal charges. Possibilities are that, upon bargaining, the charges can be waived off or can be offered at much lower rates than expected.

By adding up all the EMIs and the fees and deduct the on-road price of the car from that amount. You now have your total cost which should be the main criteria by which you will choose your loan. Since the interest rates differ from each bank, carefully go through each offer of car loan deals offered by banks so that you can get an idea as to what rate you want to sign up for your loan.

If you are looking to purchase a sedan then, the interest rates will be comparatively lower for this segment since there is a lower credit risk. The banks, genrally, ask you to cough up a huge down payment.

Once you get all your loan requirements on the paper, you can shop for your insurance cover for your car. If the car dealer is offering you an insurance cover, it might not be as attractive as it sounds. So ask your insurer and find out what kind of insurance policies are available and at what rate. Zero down on the best one –that insurance company which will settle the bill for your car directly with the workshop and you won’t have to pay at all. Also do make sure your insurer has a large network of workshops across the country where you can use the cashless facility.

After getting the best deals on your car loan and insurance policy, do not hesitate to ask you dealer to provide you with some free car accessories, like car mats etc.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
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