Every child develops a dream to own a car and it only strengthens with age. Whether it is a luxury car or a sports car or anything else, we have all fantasized about driving down the road with our own car. When comes the time, however, deciding on a car is a glorious burden! It’s the finality of a childhood dream, laced with excitement and responsibility. You want to be careful and thorough. And the best way to begin is with proper research.

Research

Once you’ve decided on which car suits you the best, there begins your actual work. Hit a few dealerships in your vicinity and gather the financing policies of various dealers. Some of them offer in-house financing while some have tie-ups with different lending institutions and banks. So, compare the on-road and ex-showroom prices, the amount of loan which they will lend, the rate of interest and the tenure of the loan. Get well versed with all the information you can gather.

Budget

The next big thing is budget. Our budget will narrow down some of our options and hence, it is the major key taken into account. Consider all the offers you have come across. Further, sit down with a calculator and compute the monthly EMIs, total interest amount which you will be draining out at the end of the loan term, down payment, etc. The only difference which will matter is the rate of interest and the tenure of the loan.

The EMIs

Small monthly EMIs are always tempting and most of the times convincing but with time, they get inconvenient. Short term loans carry less interest rate, which is economical in the long run. Loans which run for more than two years end up squeezing out more money from your pocket in the form of interest. However, with short loan term, the burden will be fended off sooner.

Car Deals

There is a horde of dealers and lenders in the market. You will have different offers of loans from different dealers. So, compare and choose the one that suits you the best. Be neither hasty nor hesitant while making a credit decision. There will always be a better deal than the one you choose and that’s okay. Settle on the one you can be fine with, don’t think about the ones that could’ve been fine.

Your car is yours to be, so any hard and fast decision will only create more chaos for you than ease your load. Financing isn’t as bad or complicated as it sounds, so start with shedding all the anxiety beforehand. All you have to do is simply choose what makes more sense to you. That car’s coming home anyway.