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  • How to Get the Best Car Loan Offer in India

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  • As owning a vehicle has become a necessity in today’s society, the earlier concept of it being a far-away dream has been negated. Getting a car has become a personal goal and each household has at least one car nowadays. Whether it is to run errands, commute to office, etc. a car offers comfort and convenience. It has become easier to procure a car for oneself due to the multiple car loan offers provided by lenders across India. Areas such as Mumbai, Delhi, Bangalore, Hyderabad, Kolkata and Pune have witnessed an astounding growth in the demand for car loans.


    However, finding out which is the best car loan option for you, as well as deciding the lender and other factors, pose a huge dilemma. It is necessary to look at various aspects of a car loan scheme, in order to determine which one offers paramount benefits to the borrower.

    Here are a few pointers in the right direction:

    Negotiate for a better Car loan Offer

    Negotiating on car loan offers can indeed give you great results! Negotiate with at least three lenders and their quotes, including the EMI payment to be made each month. This can lead to favorable results for the borrower. Negotiations should be ideally made towards the end of a month since agents have targets to meet and will be very cooperative in giving you the best rates.

    Discount Options: What not to fall for

    Usually, when discounts are offered on products, customers fall for it and go for the highest discount. This is exactly what most lenders hope for. What might seem as a good discount on the car loan scheme offered, might not be all that it seems. A dealer offers discounts on the car if he/she has a stock he has to clear, has service issues that has lowered the reputation of the outlet, etc. In order to offset these disadvantages, offers and discounts are placed on the car loan, insurance, accessories, etc. Check whether the price offered is the best in the market and compare it to other offers and decide whether to go for the offer, instead of falling blindly for a discount tag.

    Opt for Cash Discount

    If the borrower has an option to get a discount on the car loan, always opt for a cash discount rather than a discount on interest thinking that this will deduct the EMI paid out. If you make a down payment of Rs. 2 lakhs on a Rs. 10 lakh car loan, ask for a cash discount on the down payment made.

    Check out your Amortization Schedule

    Usually, car loans are offered by lenders or financiers with incentives to encourage the borrower to take up the same. Otherwise, it does not stand at par with its competitors and will face lower sales. In order to know whether the car loan scheme offered by a financier is a good deal, check out the amortization schedule of the car loan offered and negotiate with the lender to maximize your benefits. A detailed review of the amortization schedule will also help you to better understand your car loan and overall cost incurred and plan your budget accordingly.

    Manufacturing Date of Your Car

    While getting a car always check the model make and manufacturing date. Dated cars can be procured at much lower prices. The depreciation on these cards will be higher in the future and the manufacturing date further determines the resale value. Negotiate the price on the car accordingly and ask for discounts and offers on the same if the manufacturing date is not recent.

    Other tips to help you get the best car loan deal in India are:

    • Existing customers of a bank can get great discounts on the car loan offers, depending on good transactions and client relationship. Borrowers can get up to 2% discount on the car loan.

    • Check out the car loan offer and costs attached using an Online Car Loan EMI calculator tool. This will give you accurate data and cost estimation.

    • Public sector banks offer low interest rate on car loans and have better terms and conditions.

    • Watch out for any hidden charges while checking out the quote offered by the agent/ lender. Hidden charges can be in the form of stamp duty and other miscellaneous charges, which can become a substantial amount in total.

    • Go for a loan with lower or zero foreclosure charges. If the prepayment penalty is high, this will increase the cost of your loan repayment which is made early.

    • To get more offers and discounts and also to compare car loan products, you can visit third-party websites. This can assist you better in your decision making process.

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