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7 Steps to Negotiate Best Car Loan Deals

By Finserv MARKETS - Jul 27,2019
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7 Steps to Negotiate Best Car Loan Deals

If you are looking to purchase a new automobile, you might be aware of the various financial products that can support you through this process. A personal loan is one of the most compelling ways to access finances to fund this purchase when it comes with flexible repayment tenures and competitive interest rates. Individuals often step away from car loans as loan providers have a tendency to take advantage of the manufacturers’ discounts by incorporating them into the overall interest rate. However, there are a few ways to navigate the challenges associated with personal loans for automobile purchases.

For an Indian consumer, especially one based in the urban regions of the country, purchasing a new car can be an important life goal. It goes hand-in-hand with the security that comes with owning your own home. Loan providers in the market are attempting to keep up to this demand with innovative and flexible offerings backed by the reduced costs associated with the rise in the use of tech. Digital platforms such as Finserv MARKETS are one of the places to access the best personal loan deals with competitive and flexible plans offered through the Bajaj Finserv Personal Loan.

It is important to keep in mind that a trustworthy loan provider can help create a secure and seamless process for you. Car dealers often advertise and give false promises in order to promote car loan products and deals to make a commission. Buyers should be aware of the downsides of these offerings and take prudent steps to understand and assess the loan product. These dealers might even offer lower interest rates than those offered by leading providers in the market in an effort to lure you into a debt trap.

Car finance, as a whole, is complicated to comprehend. Here are a few steps that you can take to ensure that you are negotiating the best car loan deal.

Steps to Negotiate the Best Car Loan Deal:

Step 1: First things first – decide on the car model and type that you would like to purchase. The interest rates on loans for different cars can vary significantly depending on the total price tag on the automobile and many other considerations. Therefore, it is important to finalize on a model before attempting to access information on loan products and negotiate a good price.

Step 2: Next, think about the amount of car loan that you would need to fund the purchase. For example, if the car costs about Rs. 10 Lakh (on-road price) and you have the ability to make a down payment of Rs. 4 Lakh, you will need to access a loan product for the remaining requirement of Rs. 6 Lakh. Your interest rate can vary depending on the total cost of the car and the required finances to complete your purchase.

Step 3: Now, check for preliminary quotes for the decided loan amount. You can scout through the latest deals and offers from leading loan providers on digital lending platforms such as Finserv MARKETS. The platform offers transparency and security along with competitive offerings available in the market. After conducting your research, narrow down on a loan product with the lowest Equated Monthly Installment (EMI).

Step 4: The next step involves negotiating the processing fee with the loan provider. There are circumstances wherein the processing fee would be minimal on the car loan or even be completed waived off. To make sure that you are accessing the most cost-effective product, it is essential to conduct the thorough research recommended in the previous point.

Step 5: Now that you have a clear idea on the product and its associated fee, you should look at negotiating for cash discounts that could be adjusted against the down payment. The dealer could attempt to lure you by offering lower EMIs, but you should be cognizant of the risks associated with the same and opt for cash discounts at the dealership. The dealer might even propose accessories in exchange for cash discounts. However, you should be mindful on the same and push for cash discounts.

Step 6: Now that you have secured a good deal, you could look at checking free car accessories that could come with the automobile including boot mats, car mats, and more.

Step 7: Last but not least, remember to claim the no-claim bonus on the insurance plan associated with the new car if you had a claim-free record on an existing old one.

With these steps in mind, you are ready to negotiate a car loan deal. It is important to keep in mind that although there are various enticing schemes in the market, you should opt for loan products from trustworthy loan providers. On Finserv MARKETS you can avail, Bajaj Finserv Personal Loan. Before you finalize on a loan deal, make sure that you have the above-mentioned considerations in mind to ensure that you access a secure and seamless product and process.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522