What you Need to Know About Buying Car with Auto Loan
Are you eyeing getting your dream vehicle in a few months? Buying a car with an auto loan makes it possible. Learn more about how it works.
Having a car nowadays is becoming a necessity. It comes in handy when running errands for business, taking the kids to school, and going out of town for events. These are easier done with a private vehicle. However, purchasing a car might be exhausting financially and mentally. If you have no idea where to start, it will drain everything you have.
There is a lot of car deal floating on the web. You might see a car that will catch your heart with just a few clicks. Unfortunately, cars don’t come cheap. Before looking for a vehicle, you must consider getting an auto loan first.
RELATED: Top 3 Carpool Apps for Singaporeans
Credit: https://www.nerdwallet.com/article/loans/auto-loans/finance-car-0-interest
Finding An Auto Loan
When it comes to purchasing a vehicle, many overlook other details that have to be paid. For example, you do not only buy the car itself. But, you have to pay for road tax, documentation fees, and insurance, among others.
No worries. You don’t have to pay for everything in just one sitting. You can pay with instalments. Also, to help you lighten the financial load, get an auto loan.
Auto loans are easy to come by, and even banks offer an auto loan. But try searching for other private moneylenders too. Sometimes, private lenders can give you a low-interest rate on car loans even with your bad credit score.
Licensed money lenders in Singapore usually approve loans faster than banks as they require less paperwork. Also, you can even start your loan application process through the online portal of the lender’s site.
When buying a car with auto loan, make sure that you see the fine print. Some loans hide additional charges that you might not be aware of. Also, see if the loan covers the cost of ownership. Examples are repair costs, maintenance fees, and property taxes. Finally, check if there is a prepayment penalty. If you pay off the loan earlier than you should, you might pay a fine.
Also, loans may include a documentation fee. It is for the processing of ownership titles and other documents.
Know Your Limit When Buying A Car With Auto Loan
After finding the auto loan that best fits you, talk to your trusted Singapore moneylender. Ask about your limit when buying a car with auto loan. Until how much can you spend on a car? Given a budget, this is now the time to roam around the web and car shows or galleries to find your future vehicle.
In addition, stick to your budget. Remember that buying a car is a major financial responsibility. So, if you have a family to feed, you better not go over the budget.
Identify Your Want
Keep in mind what kind of car you really want and need. It is easy to spot a beautiful car. But, choosing the one that you need takes time.
Should you choose a sports car, a wagon, a van, or a family sedan? Why are you buying a car with auto loan in the first place? Is it for your business or your family?
RELATED: New GrabCar and UBER License Requirements in Singapore
Go for Details
Your choice should be based on the car’s important details rather than its looks and brand. First, look at its mileage and fuel consumption. Choose a vehicle that does not guzzle up all the gas at once. Some cars are gas efficient.
If you plan to buy from a previous owner, check the owner’s eligibility. Also, ensure that the car was not stolen or involved in any criminal case. In addition, assess the previous owner on the car’s conditions. Finally, find out the reason for selling and its usual problems.
As you go over your choices, try to see its maintenance cost. Having a car means you need to shed money for the maintenance as long as you have it. You may want to choose a simple car that you can fix or tinker with yourself to save.
Furthermore, do not forget to ask about its warranty. Also, check the fine prints on the paper. Learn the conditions that might forfeit your warranty. Most importantly, pinpoint how long it would last.
Insurance When Buying Car With Auto Loan
After finally considering the details mentioned above, there is still a lot to think about. First, will you consider having insurance?
Insurance may not affect your auto loan approval. But many lenders prefer that you have one. For example, some money lenders are concerned when you get into an accident. So who would pay the loan?
In addition, insurance will protect you and your car.
RELATED: 5 Facts You Need to Know About Maybank Car Loan
Your car’s purchase price rates are different from your auto loan’s rate. Decide whether you will choose a longer period loan or a shorter one.
An extended loan duration might lower the loan’s rate. But, you will pay much more than the original price in the long run.
When buying a car with an auto loan, decide if you will also avail of the extended service contract. It is paying for the additional repair and maintenance offered by your dealer. Some buyers consider this a waste of money. However, if this is your first car and you have the budget, it is better to have it.