You may be sure of adding a particular car model in your garage, that might even be a luxurious one. You may have a multiple option on your list but it is always better that you know the most appropriate way to arrange finance for your car. Following are some important tips that will help you in deciding upon the kind of finance you should be zeroing in while buying a car for you or your family.
Be sure of your ability in car loan repayment, whatever be the scenario
Taking up a loan always places you in the dilemma or tension of not being able to repay it in time due to some unforeseen circumstances. Even if initially the repayment goes smooth for you, there might be a sudden scenario like a financial crisis or any other emergency, which might pose as a hindrance against your repayment procedure. So, what you can do is, trying to save as much as possible, like around 40% to 50% of the overall costing of buying the car; as a large down payment. Even in case you fall short of a job or your business crashes for some reason, you should have some sort of financial back up for the timely repayment of the loan.
Calculate the loan amount can you afford beforehand
You should definitely know how much amount can you afford to take up as the loan amount. Sit and figure out your monthly expenses and savings. As per the figures, chalk out the amount you will be able to bear as the monthly installment in order to repay the loan. Try considering around 20% of the amount, so that you get rid of the debt as soon as possible. Also, do not forget to include the vehicle maintenance and insurance costing. Read about the Maruti Suzuki finance and you’ll have a better understanding.
Be aware of the depreciation effect
Before you actually sign up the loan documents, do not forget that your car is a depreciating asset. The more a car model is used for test drives, the more it loses its value. So, pause and analyze how much of loan amount, should really be applicable for you. Get yourself familiar to Maruti Suzuki finance options or such other options from now onward.
Research on car loan available on your model
Make a detailed research on the loan applicable on your car model. Maintain a flow chart of the amount you’re repaying, including sales tax, registration and title fees, etc. Always keep in mind the rates of interest and also the terms and conditions for the loan repayment. Generally speaking, there is a 48 months’ time for the car repayment, but some loan companies might extend it to 60 to 72 months. Don’t forget, the longer the repayment period the more interest rate to be charged on you.
Deciding upon the right financing option
Dealerships will never be able to offer you a better deal than the banks or credit unions, simply because the dealerships are driven by extra commission fee. So if you don’t know much about the Maruti finance or such similar options, you might end up paying the extra fees or charges or fluctuating interest rates. So research on Maruti finance and such similar options before you decide upon any of the financing options.
