The festive season is the best time to buy a car as car dealers offer many offers to attract customers. While some companies are waiving processing fees for car loans, on the other hand, some customers are giving benefits of interest rate reduction. In the wake of the Coronavirus epidemic, automobile companies have launched online platforms for the sale of vehicles. Automakers are also offering strong discounts to buy online vehicles at home and attract customers.
So if you are planning to buy a new car these days, then this can be a good time. But in the meantime, you should be careful and take special care of the following things before buying a car.
Comparison of different insurance companies
You should compare different insurance companies before insuring the vehicle. If you adopt an online method for this, then it will become even easier. Be sure to cross-check the insurance given by the dealer. This is because dealers give you an insurance policy based on their commission.
Compare all offers
Recently, the country's largest bank State Bank of India (SBI) reduced the interest rate on car loans to 7.50 paise. At the same time, HDFC Bank had offered a 50 percent discount on processing fees and PNB had announced a 100 percent discount till 31 December. Therefore, customers should compare all these offers before buying a car.
Check the vehicle papers properly
Check all the papers of the car properly before taking delivery of the car. You have to check whether the papers related to the car you are getting from the dealer are correct. You should check important documents like car payment papers, permanent registration certificate, insurance paper, manuals, warranty card, roadside assistance number, and service book.
Keep information about all big and big expenses
Before taking a loan, customers should have complete knowledge about all the small and big expenses. Customers should already know all the expenses associated with the loan. These include processing fees, late payment pieces, pre-payment fees, etc. By doing this, customers will be able to do financial planning and they will be able to fill the loan installment easily.
Take a car loan according to your need
Customers should take as many loans as they need. Many banks provide a loan of 80 to 90 percent of the on-road price of a car to customers, while some banks offer a car loan of up to 100 percent. Take a car loan after keeping your income in mind, so that you do not face any trouble at the time of payment.
Car loan rates in various banks
Bank minimum rate processing fee
Central Bank 7.25% Not Available
Canara Bank 7.30% 0.25% of the loan (1000-5000)
Bank of India 7.35% 0.25% of the loan (1000-5000)
Union Bank 7.40% Not Available
0.25% + GST (500-3750) of SBI 7.50% loan
1 per cent of HDFC Bank 7.50 per cent loan (5000-10000)
0.25% (1000-5000) of PNB 7.55% loan