There's something irresistible about luxury cars. Many families and individuals aspire to have one and sometimes find a way in their budget to buy one. Stylish design, advanced technology, and excellent performance make these cars a dream for many.
If you’re eyeing a luxurious ride, financing it might be the best way to turn your dream into a reality. There are several ways in which you can finance your dream car on the best terms and with the best rates. In this article, we'll walk you through those ways to make your dream car a reality, while keeping your finances healthy.
Compare luxury car loan rates
A luxury car comes with a hefty price tag, but that doesn’t mean financing one has to be a bumpy road. While they are typically higher than standard car loans, luxury car loan rates can offer surprising flexibility and competitiveness. Interest rates range from 6.9 percent to 9.5 percent, depending on factors such as your credit score, loan amount, and the lender. Some banks and NBFCs even offer special rates for high-end vehicles, particularly for loans exceeding Rs 40 lakh.
Before cruising into a loan agreement, remember, it’s crucial to compare options, consider factors such as processing fees and prepayment charges, and ensure your monthly payments fit comfortably in your budget. It’s one thing to aspire for a luxury car, but quite another if your car EMIs (equated monthly installment) exhaust your entire budget for the month. Ideally, your total EMIs should not exceed 30 percent of your monthly take-home income.
Embrace expert guidance
Buying a car brings excitement and anxiety at the same time. Several questions and doubts hit you till the last minute. At that time, an expert consultancy helps you to solve all your queries and doubts in one shot. They help you make the correct comparisons.
More importantly, they can negotiate on your behalf, securing a dream deal on your car. But remember, trust is the key. Before entrusting your automotive aspirations to a dealer, do your research, check credentials, and ensure the dealer has a track record of transparency and customer satisfaction. Before you buy any vehicle, it’s important to do your research, but more so if you’re buying such a high-priced vehicle. Remember: a motor vehicle is a depreciating asset, hence the resale price could be far lower than the price you paid at the time of buying.
Also read | Leasing a car is a convenient but costly affair
Always look for the best deal
Go beyond brochures and advertisements. Don’t fall victim to the exciting offers at the first dealership you visit. Compare rates and terms from banks, credit unions, online lenders, and dealerships. You can also use several websites to compare rates and terms; online comparison tools could be the best option, giving you a bird’s-eye view of the financing landscape.
Leasing
Leasing can be another good option for riders who want to experience a luxury car without a long-term commitment. Lease terms typically have lower monthly payments than traditional loans. Balloon payments can also reduce your monthly burden but come with a considerable lumpsum at the end of the loan term.
Leverage manufacturer financing options
Many luxury car manufacturers offer financing options. These deals can sometimes come with special incentives and lower interest rates than bank interest rates. Be sure to explore these options, especially if you have a particular manufacturer in mind.
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