How to get the best car loan deal

Getting to drive your dream vehicle can make life seem so much better. Auto loans are easy and quick to avail and we make sure you take on the roads faster with our quick processing of the loan.
Who says interest rates have gone through the roof? Ask them to watch the recent car commercials, and they will stop cribbing. See for yourself: Hyundai had launched a 5.99% promotional interest rate scheme sometime back, and Nissan India has an auto loan scheme with an interest of 5.98% going on currently.
The rates may seem incredible at a time when banks are quoting anywhere between 11% and 13% on auto loans. But don’t worry, they are real. They are standard reducing balance schemes and cheaper, because the manufacturer is subsidizing the loans by giving extra but indirect discount in terms of lower interest rate, experts say. “Typically, car manufacturers collaborate with financiers to come up with a custom offer on one or all the cars they have in the portfolio. Both the car manufacturer and finance company go the extra mile to make the deal sweet.
This way, these deals are normally cheaper than the generic auto loan scheme offered by the banks. The availability and sweetness of these schemes depend on how badly a car manufacturer is looking to do sales.
However, don’t go by the rates alone. The numbers could be highly deceptive when it comes to the car loan market. Car loan rates, unlike those on home loans, are not easy to compare. This is because banks just quote the rack rates, whereas the effective interest rate is much lower and it varies from dealer to dealer. That is why if you really want to evaluate a car loan offer that would work lighter on your pocket; you have to do the math yourself.
“The bank specifies the rack rate on which it would propose to lend. The dealer has the option of draw back his commission, thereby reducing the interest burden for the customer. The decision on the extent of commission to be ploughed back rests with the dealer. Manufacturers also provide subventions, from time to time, to ensure stock liquidation, and these may also be passed on to the customer to reduce his effective interest burden.
So what are the advantages for taking up car loan?
Maximum Funding: Will help you get a higher sanction for funding your dream Vehicle
Wide coverage on Vehicles: Auto loan covers wide range of car’s, SUVs’ and high end bikes
EMI on reducing balance: Repayment with easy EMIs and avail the loan for up to 7 years
Attractive Interest rates: To ensure a smooth ride Auto loans offer attractive rate of interest
Tie-ups with Dealers and Manufacturers: Banking in india have a good tie-ups with dealers and Manufactures of vehicles and so make sure you will get the best deal
If you are planning to buy your dream family car and finance is a concern then you need not worry as there are exiting car loan offers available from leading banks in India. Since car loan interest rates are based on the models of the car, it is advisable to decide on the model and make of a car in advance so that you are aware of the interest rate on your car.