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It often happens that you are all set on buying a car, but your budget does not allow it. NO, don’t let go of your dreams. You can choose a financing plan to buy your new or used car and clear off the loan through easy installment. Here are five easy tips that will save loads of money and enable you to buy a car at a cheap rate or sell your car in Dubai.
1. Buy a Recent Model:
Most of the banks would want you to pay off the bank loan within the first ten years. The older the car you are going to buy, the higher the monthly installment will be. And sometimes the banks would not even approve your loan application. Therefore, it’s advisable that before applying, one should know the basics of car financing in Dubai.
2. Arrange the Down-Payment:
Before applying for a loan, you have to make sure that you have enough money in your bank account that would cover 20% to 30% of the car price. Because the banks would not process your loan, let alone consider your application, without a down payment.
3. Consider the Bank where your Salary is Deposited:
Another important factor to be considered is that when we apply for a bank loan we should choose the bank where our salary cheques are deposited. In this manner, we might get a better financing rate as our monthly pay is transferred to the same bank. Opening a new account in the bank can also help you.
4. Better Salary results in Better Rates:
The interest rate that you are going to get is determined to a great extent by your salary. Those applicants who have permanent jobs with reputable firms and are getting higher salaries are always considered as low-risk customers by the bank. As they are better placed financially to pay off the loans. You should be sure about it that your salary certificate shows your full compensation which includes, bonuses, allowances, etc. Your bank will tally your salary with payments into your bank account.
5. Negotiate the rates:
This might be a bit surprising for you but it’s a fact that banks do slash down finance rates with a little negotiation. Moreover, other fees such as processing fees and early payment penalty can also be reduced if handled correctly and all in all, it can make a pretty good deal. So a little bit of negotiation with some bargaining may enable you to buy a car at a cheap rate or sell my car.
Keeping these five points in your mind can help you strike a good deal and get your car loan at negotiable terms.
