Owning a car in today’s time is much more than a convenience for a commuter. It is a matter of safety, freedom, and a proud valuable asset.
As it brings so much value and is a big financial commitment, it is important to choose the right partner for the journey.
Why do I need a car? Different people have different utilities for a car. For some, it is the need for a daily commute, while for some it’s a matter of luxury, and for some it may be a requirement for business. Whatever the reasons, identifying your objective for buying a new car is the first step. It then helps you filter the price range and further zoom in on the model of the car that you wish to buy.
Which car is suitable for my Income? Once you’ve identified the objective, the next step is to have a rough estimate of how much you are willing to spend on buying a car. The affordability depends on your income stability, other liabilities and accrued savings available for this purpose. The selection of the car will have a bearing on the affordability of the EMI as the price range for a car can be quite large.
What are the main features I want? Every car comes with some basic features, however now you can have advanced and customised features like blind-spot warning, an android system, and many more. While these features are available, they all add to the cost of your vehicle. Depending on the utility of your new car, you can decide the features that you would like your pre-owned car to have. Based on this you may then want to look for a car that fits your requirements. It is always better to decide this first, as this will make the car shortlisting process simplified, targeted and convenient.
Do I need a new car or will an old car fulfil my needs? The cost of a brand new car is more than a used one, as a car is a depreciating asset. If your budget allows for a new car, go ahead and drive it home. Otherwise, you can also look at buying pre-owned cars. And if you buy a car which is over 3 years old, you avoid losing a lot in depreciation value. But before you choose an old car, you need to ensure that the car’s registration papers, car insurance and other documents are in perfect order. You can also ask a professional car expert to check the condition of the car.
What is my Credit Score? Your Credit Score plays an important role in deciding your eligibility for the loan offer. Lending institutions verify your score from the Credit Institution Companies (CIC) like Transunion CIBIL, CRIF, Experian or Equifax. Bureau score of 750 and above is generally considered a good score and ensures that you get a better interest rate on the loan. A lower score usually results in higher interest rate being charged, or at times even rejection of the application.
How do I buy my New/Used Car? Buying a car is a big decision and also involves a substantial cost. While making this decision one also needs to decide whether to dip into the savings or approach a financial institute for a loan. Most people opt for a car loan rather than dipping into their savings as there are competitive rates on these loans, along with easy repayment tenure.
These are some of the main questions to ask before buying a Pre-owned car. So make sure you have them covered when considering a pre-owned car.
You can also check Poonawalla Fincorp’s Pre-Owned Car Loan offering with 100% finance for selected cars at an attractive interest rate with a hassle-free application process on used car loans.
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