Getting a car loan is not supposed to be a Herculean task where the customer runs from pillar to post trying to negotiate a good deal and securing approval of the financing company. For people who have a good credit record getting a car loan can be a smooth, hassle free and quick process. There are a few points which the customer needs to keep in mind in order to get over this part of owning a car conveniently without any hurdles. In fact the banks and other financiers offer a number of special discounts and ensure that the loan is approved for people who do their homework well before applying for a car loan. Here are some of the aspects that need to be covered while applying for car loan in order to make the experience a pleasant one.
Credit Card Payments
People who use credit cards on a regular basis and are prompt in making the payment of the dues without defaulting have a good credit record and the banks prefer approving their loans faster. In fact all credit card holders who have been regular in their payments automatically become eligible for a car loan up to a specified percentage of the car value which is informed to them by the credit card company. People with high net worth credit card facilities are offered pre approved car loans if they have maintained a clean record fo payments.
Fixed Deposit in the Same Bank
If you are applying for car loan from the same bank where you have some amount of fixed deposits then the process becomes much easier. The banks take less time to approve and may even offer a higher LTV since they have the fixed deposits as some form of security against the car loan being approved. Getting up to 90-95% of the value of the car from a bank where one already has a fixed deposit is not difficult and it also reduces the initial burden of the customer.
Certain banks in some of their offers do not require the proof of income as a precondition for approval of the car loan. In such cases the processing will be much faster as compared to conventional car loans. However such loans may be of a lower value and at a higher interest rate which the customer has to evaluate for himself. For salaried people the tenure of the car loan can extend to up to 7 years as compared to 5 years for self employed people. It is advisable to provide a proof of income and wait a few days more instead of paying a higher interest or getting smaller loan just for the sake of faster processing.
The approval phase of the loan may take some time which can be catered for by better liaison with agents of the financier or the manager of the bank. By following up with the bank one can ensure that undue delays arising out of sheer negligence of the staff is avoided.
When trying avail a car loan through faster processing the customer must guard against falling into the trap of taking a costlier loan since the commitment of repayment shall be borne by him for a few years to come thereafter.