The first time car buyer can feel both excited and nervous at the same time and feel like achieving a milestone. The buyer might feel overwhelmed easily due to the availability of the endless options in the market. It is important to make a proper plan before buying a car for the first time buyers in India. The first step is to begin with setting up a a proper budget and shortlist cars that match your expectations: keep in mind what your needs are, like is it for daily commuting, for family and its outing, or for trips and long drives. Always opt for taking a test drive first before making any final decision, it helps in giving you the real time feel for comfort, mileage and handling.

Once you have decided which car and its model to buy, the next and the most important step is to choose a suitable car loan. To not feel stressed later the buyer needs to understand EMI and repayment schedules. There are many Kender available in the market offering different EMI options, different rates terms or total cost of the loan. Planning the buying will help you save money and give you peace of mind while driving.

Car Loan Eligibility

• The age requirement of the borrowers needs to be at least 18 years, though some lenders might ask for a higher age.

• It is important to have a steady and stable income source that proves you will be able to repay the EMIs on time and without any hassle.

• If the buyer has a good credit score it can benefit and increase the chances of approval and help in getting your car at a lower interest rate.

• The buyer with proper employment stability with at least 6 months to 1 years of continued employment is mostly preferred by most of the lenders.

• The buyer needs to have a proper residency status and applicants must be legal citizens of the country where they have applied for a loan.

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What are the Basics of Car Loans

• The amount borrowed depends on the policy of the lender and the price of the car.

• The early half payment made termed as down payment reduces the loan burden.

• The buyer needs to be very well aware about the loan tenure and the repayment duration, shorter tenure for paying means higher EMIs and lower tenure for paying means lower total interest.

• Interest rates also play a role for care loans, it can vary by lenders and also depends on the credit score, loan tenure and down payment.

• The buyer has to be very particular about the fixed monthly instalments which should align with their budget.
• Always choose the schedule of repayment that is affordable and reasonable for you and matches with your long-term financial goals.

• Be very vigilant while reading the terms and conditions, which includes foreclosure rules, prepayments process, and the hidden charges.

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Things to Remember Before Buying Your First Car

• The right body type

• • Hatchbacks: it is fuel efficient for city use.
  • Sedan: It is one of the comfortable cars for families.
  • SUVs/MPVs: A good choice for long trips, joint families, and rough roads

• Plan your budget

• • Try keeping 25% of your monthly salary for all car expenses which include EMI, fuel, service, and insurance.

• What is better New car vs. used cars

• • Warranties come with new cars and all the latest technology.
  • Proper inspection needs a proper inspection and is comparatively cheaper.

• Prioritise Safety

• • Airbags, ABS, parking sensors, and good crash-test ratings are must-haves.

• • Look after good safety features like good crash test ratings, ABS, Airbags, parking sensors

• Fuel type

• • Diesel is best for long distance users, petrol cars are cheaper to buy, and CNG/ EVs save running costs.

• Resale value and service

• • Brands that are reliable with strong service networks hold better value.

• Take a test drive 

• • Ensure you compare all the deals, try not adding any unnecessary add-ons, and look on to all the car safety.

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