Getting the Best Financial Deals When Buying Cars

Buying a car is a big decision in one’s life. This is because after the purchase of a home, the second biggest investment that you would make would be the purchase of your car. When we look at it from that angle, the importance of getting a good financial deal when you purchase your car becomes more crucial.

Finance is a major part of the car purchase, as you would normally need a small amount as down-payment, as well as enough credit credibility to warrant a hire purchase loan from a financial institution to pay for the remainder of the car price. Most of us fall into this category as it is difficult to finance a car on your own unless you have sufficient amounts of cash in abundance.

To get the best of financial deals before purchasing a car, it is best that you scout around all the financial institutions in town to get the best deal possible. There are plenty to choose from, thus you would be spoilt for choice. Select one that gives you the lowest interest rates for a specified loan period so that you get the best deal possible. Some of the local banks that you could consider include EON Bank, RHB Bank, Public Bank, CIMB as well as Maybank. The interest rates would not vary that much, however it is best that you personally go to these institutions and find out the rates yourself. The current agreement at most banks allow you up to 108 months of repayment, at a total loan amount of 90% for new cars and 85% for used cars.

Also remember that you would need a bit of savings from your side to ensure that you are able to place an amount for the car’s down-payment. The down-payment is usually a pre-requisite when you purchase cars, however some of the auto dealers are now promoting new cars without the need for down-payment.

 

Although this could prove helpful for those who do not have cash reserves, in reality, you would end up paying more to the financial institutions as your loan amount would be higher, and you would also pay more in terms of interest to the bank in question. In the long run, you end up saving more if you can come up with a decent down-payment figure when you purchase your car.

Finally, do not forget to negotiate when you buy cars, for both new and used cars. Getting a good financial deal is only complete when you negotiate for your car’s purchase, and get the best price possible from the car dealer. Failing to do this would only mean that you are losing money, and you do not want that now, do you?