Now only a few days are left for Diwali. People also shop for new things on Diwali. If you too are thinking of getting a new car on Diwali then car loan can be a better option for you. Taking a car loan today is very easy and easy. You can also apply for a car loan while sitting at home online. But despite all these facilities, many small mistakes happen while taking auto loan.
The special thing is that no one gets noticed quickly for these mistakes. But later it can be disturbing. You may have to pay more interest due to these. Let us know what mistakes we should avoid while taking a car loan so that there is no further loss.
Compare offers from different companies
While taking loans, many people make the mistake of not comparing the interest rates and other information received from different companies. Most people take loans from any bank or NBFC either by reading the advertisement somewhere or on the suggestion of their friend. Do not make such a mistake. It is better that before taking a loan, compare different loan rates, loan duration and other information by a different company and based on that, choose the best loan product for yourself.
Avoid zero down payment
While taking a car loan, ‘zero down payment’ is an offer that attracts almost all customers easily. But try to stay away from it. Without paying down payment, the loan will be more expensive and you have to pay more interest on it. The value of your car will decrease after some time but the debt burden will increase on you.
Do not take long term loans
Taking a loan for a long period may sound like a good idea because in it you get a loan at a lower interest rate. But, taking a loan for a long time also means that you will have to pay interest for a long time. That is, by the time your loan time is over, by then you will have paid a lot more money than your actual loan amount.
Avoid taking a loan to modify a car
After purchasing a car, customers often get it modified according to their needs. Such as better music system, new types of accessories etc. In today’s era, many banks and NBFCs also give loans for such expenses after purchasing a car, but this is not a good option. This increases the interest rates of the loan. It is better that you buy your own car accessories according to your needs, it is cheaper than taking a loan and getting modified.
Avoid car add ons and financing
Customers also see an add-on while purchasing a new vehicle. Your lender can also offer to finance for them. Selecting them will increase your total loan amount. The result will be that you will spend a lot on a decreasing asset, which will not yield much return in a few years. Therefore, instead of taking financing to add ons, you can buy car accessories at a much lower price from the market.