Car finance can become complex because of the financing deal between the car dealer and the bank.
It will help you negotiate better if you follow the process below:
1) Finalize your decision on the car you want to buy. The interest rates vary from car to car; so, what is available on one car may not be available on another car
2) Fix the amount of vehicle loan you need. Suppose the car costs
Rs 8 lakh on the road and if you are ready to make a down payment of Rs 2 lakh, then freeze your loan requirements at Rs 6 lakh. Interest rates that you get also depend on the loan amount.
3) Ask around for preliminary quotes for the given loan amount for the given car. Freeze on the lowest EMIs that are offered.
4) Now, negotiate on the processing fees. Most times, the processing fees can be waived.
5) Then, start negotiating for cash discounts that can be adjusted against your down payment. The DSAs/dealers will offer to reduce the EMIs, but resist the temptation and insist on a cash discount. Also, the dealer/DSA will offer accessories in lieu of cash discount; again, resist and insist on cash discount.
6) Once you find that the cash discount limit has been reached, you can try for a small freebie on car accessories such as car mats, boot mats etc.
7) Remember to claim your no-claim bonus on the insurance policy for the new car if you have a claim-free record on your existing old car.
(Adopted from Apnaloan.com) |