4 Common Car Loan Mistakes to Avoid

People spend a lot of time in research when it comes to buying a car. Comparing different car models, weighing the features of different variants against their price, and so on are all part and parcel of finding the perfect car. But have you ever thought of investing time in finding the right car loan?

The easy availability of car finance has made it very convenient for people to buy their dream car. However, the abundance of options also makes it hard to find the loan option that would suit your needs the best. As a result, people end up making car loan mistakes which are, in fact, quite easy to avoid. If you too are planning to buy a new car, here are some car financing tips for avoiding such common car loan mistakes: -

Not Considering your budget

The first and foremost car finance advice is to be aware of what you can easily manage. Sit down and consider your monthly budget and determine what amount you can realistically manage to pay every month as EMI. Apart from the EMIs, don’t forget to include the down payment and the maintenance costs for the car in your calculations. Don’t just opt for a financing scheme just because its repayment ‘sounds’ affordable. Assess everything logically and make sure your financial decision does not end up causing financial strain down the line.

Choosing A Longer Term

Among the most common car loan mistakes that people tend to make is choosing a longer term as the tenure for their car loan. It is true that spreading out a loan over a longer period of time means lower EMIs, but overall, you end up paying more in terms of interest. One of the most important auto financing tips is to select the shortest term you are comfortable with to minimise the outflow of interest. You can use an online EMI calculator to get a better idea of what would suit you.

Choosing the First Loan Option You Find

Do your homework before you choose a car financing scheme. Instead of jumping at the first option you see; look around, compare the benefits, features, and interest rates of different loans, and choose the best from the lot. With the huge number of car loans and providers available today, it will not be difficult to find a car finance offer that perfectly suits your individual needs, as long as you put in the due research.

Opting for Zero Down Payment Offers

Another important car loan tip is to remember that as tempting as “Zero Down Payment” may sound, it is not the best idea for you. Zero down payment means an increased loan amount, higher EMIs, and a higher outflow of interest. While you will be able to drive away your new car without having to pay right then, this scheme is the best example of “less now, more later”, where you end up paying more than was necessary.

With these car loan tips in mind, you will be able to find a finance option that suits your needs perfectly. Make sure you make a comprehensive car loan checklist that covers all the important aspects that you need to confirm before opting for a loan. While you do that, also check out the Maruti Suzuki Smart Finance. It is an online end-to-end car financing platform offering complete transparency and convenience for you to get car loan easily, no matter where you are.

Know more about Smart Finance here https://www.nexaexperience.com/maruti-suzuki-car-finance