In today’s day and age, the car an individual owns tends to define their social standing, and buying the car of choice remains a dream for many. But nowadays, a number of financial institutions provide car loans to help realize that very dream. There are of course a number of things that one needs to consider before they select their car loan. Concentrating on the best deal for a new car, people often forget to think about the best deal for a car loan. A very common mistake that people make is of choosing the car before analyzing the available finance options. Choosing the car first tends to make people more susceptible to accepting less-than-stellar loan deals. Some of the common mistakes that one needs to avoid before choosing a car loan are:
5. Not Selecting the Shorter Term
Spreading out a loan over a longer period of time ensures lower monthly payments, but in the end you will just end up paying more than what was necessary in terms of the interest. When applying for car loan, try to choose the shortest term that you are comfortable with to minimize interest outflows and maximize loan benefits. Use the automated EMI calculator available on the Paisabazaar website to find the most suitable option for you. That said, with the large number of loans available in the market today, it should not be too hard for you to find the one that is perfect for your needs.