Owning a car is the second largest personal expense after buying home for us and our family. For buying a car, we tend to find some easier options in order to make the most of this expense and save bigger chunk of hard cash for rainy days. For saving more money, we have to take some cost-saving measures and if everything is planned and executed well, we can save more than our expectations.
The best way for saving cash for us while buying a car is auto loan. According to researches, out of 10 people, seven people prefer to buy a car through a bank loan in Dubai. The procedure is quick and simple as the lender purchases a car on your behalf from the market and makes a settlement with you. In this settlement, you pay back the money to the lender in installments and against it, you pay the service charges as interest to compensate the lender against his investment.
Now for buying a car at good rates, there is a need for proper planning while understanding the whole procedure of car loan in Dubai. Normally, people take decisions right after the first meeting with the salesman. They finalize the deal right on the sticker price and commit a huge amount, which can otherwise be negotiable. They erase the opportunity of savings when they do not negotiate. Factually, you can save thousands of Dirhams over the life, but most of the people do not know how they can.
To help you out in taking this decision, we are describing some basic points through which you can save a huge amount.
- You must negotiate on the monthly payment in the discussion.
- Do not negotiate much on the purchase price as you will not get maximum benefit out of it.
- Do not show your creditworthiness to the dealer; rather let him work to define it.
- If you are not able to compare low interest rate car loan in Dubai and cash rebate, you will not take good decisions. If you are interested in low- interest rate, you must take your credit at a good position.
- If your dealer is telling you about “Upside Down” option, you will have to face “negative equity”. It means that you will have to pay the extra purchase price. So, do not get influenced if the dealer is offering you such options.
- Do not add those amounts in the financing, which you can handle separately.