| Finding the right car is one thing, but to finance that dream is a whole new ball game. In the auto loan market, financing either involves the dealer providing a loan or the cars are lined up for lease. If the loan or lease is not your cup of tea, then buying the car in one payment is the best option. |
| 1. Getting an auto loan |
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Auto loans are offered by banks or through the auto dealers financial institution. |
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The negotiated price is paid along with the sales tax plus the title and licensing fees. |
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Loans are sanctioned based on your credit score. |
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The tenure to repay an auto loan is between 3-5 years (35-60 Months). |
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The interest rates, term of the loan and the down payment determines the total amount you have to pay in a month. |
| 2. Lease an auto |
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Leasing is nothing but paying for the vehicle you choose to use over a particular period of time (varies between 24, 36 or 48 months). |
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Monthly payments, up-to-date insurance, vehicle tax, licensing fees if any and safekeeping of the vehicle is expected from the customer when a lease is signed. |
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Leasing enables the consumer to drive 12,000 miles a year and can be extended up to 15,000- 18,500 miles if required. |
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On completion of the lease, you have a choice of either returning the vehicle to the company, purchase the vehicle at a fixed price or trade in the old vehicle for a new car. |
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Extra charges may be levied, if the car is found to have excess wear and tear. |
| 3. Buying a vehicle |
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Buying a new vehicle with cash would nullify the complex procedures of down payment, interest rates or monthly payments. |
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Negotiate the price and hand over the check to the dealer. |
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