Financing your first Mahindra car
Owning a car is a dream that comes with a cost, and the inevitable EMIs, for most middle-class families and hence finding the right financing plan for your car becomes a task, especially if it’s the first. Because everything comes with a risk and only after thoroughly understanding them and weighing the best options can we make the right decisions.
While there are a host of apps that allow you to calculate your EMIs at the best rate of interest for a suitable tenure, you’re always better off in safer hands with a trusted professional and that’s where the finance facility at Automotive Mahindra showroom, Secunderabad comes into play.
All authorized Mahindra dealers have a finance and insurance wing to help their customers in making the right choices and securing their dreams.
While we advise you to visit the nearest Mahindra showroom in Secunderabad, for in person assistance, here are a few financial tips for first time buyers –
Plan Your Spend
The most important thing you to determine is how much you are willing to spend based on how much you can afford to pay every month. It is important to keep your budget in mind and be realistic about what you can afford and not stretch your budget.
A good rule of thumb is to spend only what you can easily pay over three years.
Shop for a Loan Before You Shop for a Car
Once you’ve established your budget, you can begin contacting your bank for a loan.
First thing to do is to determine the availability of better rates. If you are eligible for a credit union, you should check there as well. Be sure to ask about automatic payments and lower interest rates. Lenders will not guarantee a rate until you sign the papers, but they will give you preapproval for a loan amount and the current rate. Most banks will lower your payments if you set up an automatic draft.
Choose A Car That Fits Your Pocket
It is a common observation that the value of cars depreciates over time and it is for this reason that paying interest on a car loan is not a smart option.
But many of us can’t afford a hefty down payment and so we get a car loan. But there’s a difference between using a car loan wisely and using it to buy a lot of car you can’t afford.
What happens in most cases is that the car depreciates, and the value of the car drops faster than you repay the loan.
Put at least 20% down.
You’ll pay less in interest over the monthly instalments and overall, you’ll qualify for financing more easily. By putting down at least 20% as the down payment, you’ll offset depreciation on the vehicle, which is even more important with used cars.
And if the car gets totalled in an accident, you’ll owe less to pay it off. You can also save money by paying off all taxes and fees at the time of purchase, instead of rolling them into your monthly payments, and paying interest on them.
Find someone willing to co-sign your loan.
You’ll have an easier time getting financing if you can find someone with good credit to co-sign your loan, meaning they agree to pay it off if you can’t. Keep in mind that your co-signer will be on the hook for payments if you default.
For more assistance on financing or re-financing your cars be sure to visit your nearest Automotive Mahindra in Secunderabad for more assistance.
Let nothing get in the way of owning your Mahindra.