Car loan is not as quick as non-secure personal loan. Yet, it can be processed and approved much faster than home loans or plot loans if you are ready to receive one. In other words, applying for a car loan is not as time consuming any more. It is a quick online process. Yet, it could be time consuming if you dont have your affairs in order. As lenders verify few financial details to ensure borrowers credibility and repayment capability, anyone could get loan-ready by the time they finalize the car for purchase.
Keep your finances in shape
When you decide to buy car with loan, this is the first factor that you need to work on. If you have bad credit score, you wont get the loan approval. Regardless of your repayment ability, bad financial decisions affect your credit and credibility in market. No wonder it is useless to apply for car loan without checking and improving your credit score, if necessary.
Keep down payment ready
Most banking and finance organizations expect up to 20% of the car value as down payment. Thats the industry standard. Though, this amount would vary from bank to bank, you must save sufficient funds aside to pay the down payment if and when you need to. Gathering 20% of the funds at last minute are almost impossible for borrowers. Get it ready before you need it.
Do not opt for auto via third party vendor
Most car retailers and insurance guys offer you good deal for your car loans. However, it is important to understand that these third party vendors benefit from the recommendation. So, instead of paying for that recommendation, visit the comparison banking websites and find the lowest interest rates for car loans. It is a much faster way to finalize the loan.
Negotiate the loan features thoroughly
You can negotiate every facet of the car loan. Whether it is interest rates for car loan or terms and conditions in the agreement, you should ensure that they are aligned with your financial requirements. For example: Would it be possible for you to pre-pay your car loan in near future? If so, you must ensure that prepayment clause doesnt include major penalty so that you can make the payment when possible and save the interest payment.
So, in conclusion, if you prepare well for this loan, you can save precious money and time.