7 Tips & Tricks for Managing a Car Loan
continuous waves of uncertainty and a lower pace of growth make us all want to cut those redundant expenses that we might be making. this includes our loan liabilities. if not properly planned using a car loan emi calculator before going for it, your car loan emi can become a little too heavy on the pocket. here are a few tips and tricks to manage your car loan better.
purchasing a car is a decision we do not make too often, and hence it is a natural tendency to mull over whether we got the best deal or not. your salesperson would want to push you to buy the most popular, and one of the pricier cars. whether this car fits your checklist is a decision you must make objectively. do consider other models' options, an older make and similar performing vehicles if they are likely to save you a fortune.
try to put a big down payment on the vehicle if you can afford it. this would decrease the volume of the principal and the amount of interest on your debt. the lower the principal, the lower your emi would be. check your preferred lenders' terms using a car loan emi calculator. also, make sure to find out whether or not you are eligible for the car loan of your choice by using a car loan eligibility calculator.
weighing out all necessary expenses and framing a budget should be the starting point of your car purchasing journey. often, we do not factor in the ancillary expenses that come with owning a car. some unavoidable expenses of fuel, maintenance, insurance repairs and depreciation come along with a car purchase.
a healthy credit score is likely to give you access to your loan with much better terms. timely payments of other loans, credit card debt, etc., are some ways you could do this.
opting for a shorter loan tenure ensures that you save up on the interest costs. the faster you pay off your loan, the lower the interest component you will need to shell out. calculate your emi payments for your car using the car loan calculator.
ensure that you pay your emis regularly. if you miss a payment, you risk your relationship and credit status with the lender. the interest gets accumulated up to the next repayment date, which may lead to a cash crunch. having a disciplined approach towards your car loan makes it easier for you to get faster credit disbursal in the future.
if you feel you're in a better position with your credit score, or if the economic conditions had significantly changed from when you took a loan and now refinancing to get better interest rates, tenure makes perfect sense. refinancing means getting your loan agreement modified for more favorable terms. this can massively reduce your loan expenses and, thereby, the emi amount.
all in all, you can save money on car loans in a lot of ways. the easiest way to start saving smartly is by figuring out how much you will have to shell out per month to pay off your debt using a car loan emi calculator. this will help you handle your car loan according to your repayment ability without drilling a hole in your pocket.