Have you thought of being on the road in your dream car? Such dreams never come alone; they always come with a price. Regardless of what you’re currently driving, there’ll always be a car that will get your heart racing. Rather than compromising on your dream, you can manage your finances in a better way to buy your dream car.
The thought next-in-line after dreaming about a car is the availability of finance for the same. It’s just a matter of chance if anybody has a ready amount for the same. To help the common man achieve his dreams, banks provide car loan facilities, which can be repaid in installments, with the amount and tenure being flexible.
Here are a few steps you need to undergo before availing of a car loan for buying your dream car.
- Analyze Your Credit Report
Before stepping towards accomplishing your dreams, you should analyze and get your credit report ready before applying for a car loan. Having a good credit score might help you get a better interest rate. The report should be ready before a few months of applying. Your car loan application will be processed and approved faster if you have a good credit score, which is usually above 750.
- Explore Benefits Across the Lenders
Though all the banks and dealers provide competitive interest rates and benefits, you should be wise enough to compare carefully and choose the best. The car loan interest rate usually varies across the lenders with a different set of benefits. Choose the lender providing a car loan with the lowest interest rate while being aware of other terms and conditions. Also, you should be aware if you are being offered a loan on the on-road price or ex-showroom price. This will also make a difference.
- Make Higher Down Payment
Usually, when you don’t have much cash in hand while buying your car, you tend to get installments tied for the coming years because you’re left with no other choice. But, if possible, you should try to make a maximum down payment, such that you can save on your interest amount.
- Set Your EMI Wisely
You can estimate the amount and number of installments by using the online EMI Calculator. You can calculate the amount by evaluating all your regular expenses, existing EMIs, insurance premiums, etc. Accordingly, you can set your installments and pay them along with the interest amount.
- Prepayment Charges: Lesser the Better
If you get manage well, you might be able to repay the loan amount before the committed time. In that case, some lenders apply prepayment charges, which might go up to 6%. Therefore, you should choose a car loan with lower prepayment charges.
- Scrutinize for Schemes and Offers
Before signing up for any car loan, you should scrutinize all the ongoing schemes across the lenders and try to make a better choice while availing maximum benefits.
There are a few things that should be necessarily taken care of before availing of a car loan:
- Don’t leave your finances under stress by stretching them.
- You should prefer banks over dealers to get a better deal
- EMI amount should fit your budget
- Make sure you avail of a loan on the on-road price
- Conduct thorough research before choosing one
Holding up to Buy Your Dream Car? Apply up for a Car Loan
No stone should be left unturned in catching up with your dreams and living them to the fullest. If you’re dreaming of a car and have a bit restricted budget, you can always take support from a car loan. While living in the age of digitization, where everything is done while sitting back, reputable banks like Axis Bank provide you with a car loan, which is just a few clicks away. You can simply browse through their website to calculate your estimated EMI amount, apply for a loan, and track your application thereafter. And, you’ll be nearer to the process of buying your dream car which you’ve been aiming for.
Have your heart on a car? Buy today!
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.