The manufacturers are coming in with various impressive products in the Indian market. Will all these new vehicles, we also see an increase in finance options. No matter what the finance company says, it isn’t a very easy process. But the good thing with strong competition is that you have a lot of options to find the best one for you. You just need to make sure that you use it to your advantage. We try to help you get the best deal for your next set of wheels.
The best thing you can do while trying to find finance is to explore your options. Try different dealers for prices and for deals they might offer you. Approach different brokers and dealers to find the best price you can get. Make sure that the dealer understands that you are serious about making the purchase. They don’t want to waste time with useless enquiries so they will make you better offer only when they see a potential sale. Also try different finance companies so that you get the best loan scheme. Some manufacturers might also offer you attractive loan packages with specific companies, these are worth a closer look.
Try to negotiate
There is no hard in trying to negotiate. Believe it or not, in these transactions, there are margins left for everyone and everything and you can save some more money by negotiating. Get different quotes from dealers, pit them against each other and use them as tool to bring down the prices even further. Also most of the agents you would come across function according to their monthly targets. Try to deal with them after almost two third of the month is through because that is when they are desperate to take the count up and will offer you decent deals in the process.
Also look for hidden fees in the details. The market is very competitive and you might notice that some of them don’t charge you for many things. When you get an all-inclusive quote, check for the details so that you don’t miss anything. These charges could be thousands and might go unnoticed at times.
Relationship with same institution
Everyone wants to simplify the job and it is the same story with financial institutions. You can have some advantage if you are already a known individual to them as it would reduce the paperwork for them and also give them a security to some extent. Most companies offer 1-2 % percent discount to people who already have account with them or have got fixed deposits with them. Do note that you don’t have to go just by the agent’s word for this one. Anyone claiming to give the deal ‘just for you’ is lying. Why would an unknown individual offer you a better deal for no reason? Use the tools at your disposal like financial calculator to make sure he/ she isn’t bluffing.
There are some cases where the manufacturer also has financial plans for offer. These plans are relatively affordable as compared to the ones offered by your dealer or broker. Like Tata finance offers better plans for Tata vehicles. See if you get any such options and opt for them if possible.
In most cases it has been observed that nationalised banks offer better interest rates and competitive packages as compared to the relatively smaller private firms. The process might not be that easy but the little trouble would definitely be worth the savings. If you have an existing account with banks like State Bank of India or Punjab National Bank, approach them for a quote on your new car.
Many banks put penalties on you if you decide to pay off the loan early. Check if your loan plan has got something like that. Just in case you are planning to pay off early, try to ask for a waiver on the penalty.