subject: Low Emi Loan For New Cars [print this page] When you purchase a new car, you may not be able to make the entire payment. Borrowing a loan is the most common and appropriate solution. How do you repay the new car loan? The bank or loan lender will give you the option of paying off the loan in EMIs or equated monthly installments. This article will tell you all about EMIs and the process of getting a low-EMI loan on your new car.
Once a car loan is borrowed, the borrower will have to pay back to the lender a fixed amount every month. This amount has to be paid on a specified date of the month. The principal and interest are both included in each months installment payment, in a way that, over a specified number of years, the loan amount is repaid in full. EMIs and variable payment plans are different. The amount in an EMI is fixed while a variable payment plan, at the individuals discretion, allows him to pay higher amounts. As the person repaying the loan through EMIs knows the amount of payment he needs to make, the personal budgeting process becomes easier.
Now, how do you get a new car loan with the best EMI option? You need to do your homework. Sit in the comfort of your home and search online. You must know the amount you would need for your new car purchase and also, the amount of loan you would require. Knowing this makes the loan search process a lot easier. Go through as many new car loan lender web sites as possible. Most of them have EMI calculators. Also, most web sites have the online loan quote option. As they clearly mention that these would be free, no-obligation quotes, requesting one in no way means that the deal is finalized. You can finalize on the car loan deal only if you like it.
Now that you have calculated the EMIs from various lenders and the quotes too are ready, you can begin with the car loan negotiation. It is advisable to zero in on the lender that offers the lowest interest rate and the lowest EMI. The rates mentioned on the web sites need not necessarily be fixed and will most of the time be negotiable. Since you have quotes from other lenders ready, negotiation becomes even easier. Contact the lender and ask him to lower your interest rate and EMI. Display the best quotes from other lenders and this will help bring down the rates further. The lender will fear that you may move away to a different lender.
Once the interest rate and EMI is finalized, you may finalize the loan deal. You need to be careful about the paperwork though. Read all papers thoroughly and understand the terms and conditions before offering to sign them. Keep an eye for hidden conditions as well.
