THE
FINAL WORD:
Lets
summarize.
Before you start shopping for a finance scheme you need to do two things:
• Check your bank balance and decide on how much down payment you can
afford. Remember that it's always better to pay a higher down payment if
you can afford it since it turns out to be cheaper in the long run.
• Look at your income stream and get a fix on the instalment that you
will be able to pay (monthly or quarterly) without disturbing your current
lifestyle and for how long.
Armed with these figures you can start looking for a financier, either by
responding to their ads, or by signing up on some of the websites that offer
match making services between financiers and potential clients.
Have enough time on your hands whilst searching for your finance scheme.
Rushing into finalizing a scheme is a cardinal sin and you are likely to
end up paying more. Call from quotes for as many financiers as possible.
Shortlist a set of at least 3 financiers based on the initial quote and
then negotiate with them on each component of the scheme. Armed with the
rudimentary knowledge about car financing you will be able to ask the right
questions and get your self the best deal.
Remember not to fall for longer tenure lower instalment schemes, because
eventually you pay a higher interest amount and more often than not, the
market value of your car depreciates much faster, than the rate at which
you have been retiring the principal. Also, do not fall for the 0% interest
schemes, since if you are not paying the interest, then someone else is
and it is usually the manufacturer in the form of a discount to the financier.
Once you are able to get a handle on the discount amount, you can work out
a scheme better suited to your requirements.
Here's a secret. In today's world, the consumer is King. Two individuals
availing a finance scheme from the same source can get different deals.
So negotiations can go a long way to get you better deals and the maximum
bang for your buck.
Happy financing! |
January 2002