Buying a car is always a matter of great contemplation for an average middleclass family. Although it is a matter of great pride and happiness, people usually do not buy a used Hyundai Santro Xing in Bangalore unless they are confident about the finance.
If you are in the process of working out your finances for a car, here are a few tips to consider.
Down Payment Amount
If you are going to apply for a loan then remember the loan is not going to cover up the entire cost of the car. You will have to arrange for the down payment money. You can arrange them either from your savings or you may borrow money from family or friends.
You might have planned to get a loan from a bank or financial institution but loan eligibility is different for different people. Your source of income and credit scoring can affect your loan eligibility. You can check your credit scoring using online resources.
Rate of Interest on Loans
A lot of people find themselves in uncomfortable situations because they misunderstood the rate of interest and end up paying higher EMI. They don’t check with the loan issuer if they will be paying interest on reducing balance or will it be the simple rate of interest. They also don’t check the early repayment policy. They don’t check if the early repayment will be adjust against interest or principal amount. These things can cause financial distress.
Cost of the Car
People also tend to miscalculate the cost of the used car. It does not just involve the cost of acquisition. After the purchase, you need to spend on legal formalities that need to be completed. There is maintenance cost and running cost of the car as well.