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Buying a house is one of the most important decisions in one’s life. Along the same lines purchasing a car is next big decision to be taken. Both these decisions require huge finances and also require careful planning and calculated decision making. Hence it is required to understand what considerations are to be made before arriving at a conclusion.
1. Options before taking a decision –
A. New vs. Used
B. Used vs. certified pre-owned
C. Dealership vs. independent seller
D. Base model vs. higher-end options.
2. After taking above decision-
Financial options are too many confusion chooses. In order to ensure right choice is made here are a few tips.
1. First calculation of Credit rating is needed-
To ensure that finances do not disappoint once a decision is taken it is important to know CIBIL score. This plays an important role and a decisive one for availing car loan.
Higher the score then a lot of options can be had as financial capacity is present as per the score. If you have time before the car is purchased getting a better rate for the same is important.
It is necessary to ensure that no previous loans exist and on previous loans taken no loan defaults have taken place and if done reasons and clearance certificates can help.
2. Researching Online
Car buyers have a ton of information available to them these days. Web sites offer free information about car models, features, prices and you can even find owner ratings, car suggestions, and reviews. If there is slight doubt of any nature it is needed to personally cross check the same. It can be important to check the vehicle if is new as many a time problems can occur in the same.
3. Think of Price instead of Monthly Payments
Many times while taking a decision repayment factor is considered instead of the actual purchase price. It is important to first compare the price in various areas, various models & various makers. These are very important as prices vary as per accessories provided, dealers commissions etc.
4. Interest Rates- Various banks & loan providers charge different rates for a loan. Though it is a competitive market knowledge of interest rates charged, down payment and other charges comparison is needed as they add on to the purchase costs.
5. Buying Add-Ons From the Dealer
Add-ons are optional features that a dealer adds to a car. Common add-ons include undercoating, CD Stereo, alarm system, window tinting, chrome wheels, pin-striping and leather seats. These features are often overpriced and used as a way to boost the sale price of the car. Plus, it’s been shown that add-ons rarely add long-term value to your car. In some situations, such as an upgrade to a premium model, these add-ons can actually harm the resale value of a car. If you do decide that you need an add-on, check first
Outside companies that may offer the service for less.
6. Shopping Around for Car Financing
If you don’t know how car financing works, you may think your only option is getting a loan from a reputed lender. It is very important to take the final decision only after taking advice from reputed lenders as many unscrupulous financiers charge hidden charges on one pretext or the other. Also, the general rate of interest is almost same but only a few give extra benefits. These can be had only from good and reputed financers.
So all above points are to be considered and then only decision taken.
Policies, Codes & Other Documents