A motor car is one of those important purchases you make. You might have some particular model in mind, but it is wiser to decide your needs and plan how you can arrange funds to buy the motor car before you dream big. The best auto loans are now online for all kinds of car purchases. All the customer needs to do is get an auto loan quote from several lenders, then compare the different auto loan quotes to pick a suitable choice. Though it sounds simple, there are several simple steps that make up the loan process.
Best sources for auto loans
While co-operatives and government banks do have loan schemes for purchasing motor car or property, they have stringent requirements and the process might be complicated and take time, especially if you have poor credit. Instead, you could opt for internet auto loans from dealerships or exclusive auto loan companies. Auto loan web sites can help you from start to end.
- First, you estimate your credit rating. Then decide your finance option for internet auto loans. You could opt for deposit payment plan, margin money scheme or advanced EMI. You can have direct or indirect, secured or unsecured loans. Indirect loans are preferred in most cases because the risk is not on lender but on other investors. Secured loans do not ask for car deed as security but may have higher interest rates.
- Next, assess your loan needs. How much amount do you need? Internet auto loans offer more than 80% of the payment after you make the initial down payment, say 10%. Good down payments can ensure lower rates and better loan amount.
- Fill in the basic application form for internet auto loans. If you are borrowing through the car dealership, then the details of sale are known. If you are applying to loan companies, then you will need to give the details of the intended purchase. Fill up the initial details in the application form. You might be asked for contact details and address or age proof, your income details and/or any bank statements. Other financial details may also have to be supplied.
- Get your auto loan quote. Decide a suitable term of loan, say 4-5 years. Decide your periodic installment plan. Are you paying monthly, weekly or yearly? Online auto loan calculators give you free quotes for internet auto loans. Compare rates from various sources to choose the best auto loans. Rates of interest vary according to type of loan, principal, loan term and other factors. Get your EMI calculated.
- After you submit the necessary details, the auto loan lenders will get back to you if your loan is approved. They might also suggest that you go for some special scheme like bad credit financing or refinancing to pay back your existing car loan. You can ask for certain negotiations. You can save by making faster and higher payments and applying for refinancing. Making good down payments helps for faster approval. Good luck in selecting the best auto loans!