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Finance

Tips to Make Smart Financial Decisions When Buying a Car

Today, it has become quite easy to purchase a new or used car. With a plethora of options available in every budget, you can buy a car based on your needs and financial capability. If you are facing a shortage of funds, you can seek monetary assistance through a car loan. However, owning a car is expensive, as you need to bear the expenses related to Equated Monthly Installments (EMIs), maintenance, fuel, and repairs.

A car is a depreciating asset; therefore, you should make sensible financial decisions while purchasing it. Here are some essential aspects that you need to take into account:

  • Budget

You need to determine your monetary capacity and then take a call whether you want to buy a brand-new car or a pre-owned vehicle. Based on your current financial situation, you can decide which category of car can meet your requirements. Consider the sum you can afford to pay every month towards the EMI of your car finance. So, analyze your savings in hand and income to expense ratio before making the purchase.

  • Ownership cost

The cost of maintaining a car is quite steep. You will need to pay the expenses related to its periodic servicing, repairs, and fuel. If you are planning to buy a used car, such costs can increase substantially. So, weigh your options carefully and be clear whether you want to buy a new car or a pre-owned one.

  • Funding alternatives

Your present financial status is one of the most necessary aspects while buying a car.  Also, if you already own a car for years, consider the option of selling it or exchanging it with the dealer before purchasing a new vehicle. Determine how much money can you pay as a down payment. Also, finalize the loan value and tenure. Make it a point to select a lender that offers competitive interest rates by comparing the offerings of various financial institutions when you look for a car loan online.

  • Other vital factors

It is advisable to buy a car during the festive season, as most companies launch new vehicles at that time. Moreover, you can avail of some incredible deals and discounts from car manufacturers during that period. You can get amazing cash discounts, offers on car servicing, benefits on car finance, and concessions on accessories, among other customer-oriented facilities.

Now that you about what facets to remember when purchasing a car, look for a suitable lender to help you with funding. Mahindra Finance has an easy application procedure. You can check the car loan eligibility criteria on its website. So, log on to the lender’s website and apply for a car loan now!

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