What You Should Do Before Applying for a Car Loan

Considering the many challenges of boarding local transits to the office or on vacation, owning a car has become a necessity in this age. So, don’t get left behind. You can consider taking up a car loan to make your life easier and comfortable. No pressure there! I will walk you through the whole process.

Choose your desired car

Selecting a four-wheeler can be challenging because there are many models, sizes, colours, and shapes to choose from. You should ensure to choose a car that meets your needs and suit your personality. For example, you can consider buying a used car if you want something more rugged. Also, make sure to consider the performance, the safety feature, and the surrounding system of your desired car.

Compare and finalize your budget

Before applying for a car loan, the logical thing to do is to decide how much to allocate for the investment. It is a big investment on your part when you buy a car, whether a brand-new car or a used car. Figure out the monthly amount you want to spend on a car and plan your finances efficiently. Make sure also to calculate the car’s resale value and find out the Manufacturer’s Suggested Retail Price (MSRP) before applying for a car loan.

Apply for a car loan

First, shop around for the best car interest rate because there are no fixed rates in the market. Make sure to choose a favourable repayment term after calculating the service tax, the processing fee, and the EMI. Some banks like Ikano bank offer customers attractive car loans schemes, so make sure to ask around and choose your car loan wisely.

If you are considering a car loan, don’t forget the proper documentation, which includes your proof of income, bank statement, and proof of current expenses.