If you have taken a car loan, you should repay the pending balance faster to have a chance to reapply for a second auto loan. A car dealer values the clients who have the strength of making repayment on time. Before going to the car dealer to have the car, you should consider important factors regarding the loan clearing issue.
Ikano Bank is a company in the Ikano Group, divided into five business areas, covering the main activities financing, insurance, real estate, retail, and asset management. For free quotes, a timely guide to repaying the car loans, and current information on top auto loans, visit IkanoBank.dk.
Know Your Credit History
Your credit ratings should not be below 650 to 750. Based on your current credit history, the vendor decides to approve the car buying application. In case the updated credit scores are not high, wait for the improvement. It will save you money.
Borrow Loan Amounting to Minimum $5000
Banks and other financial institutes are knocking at your doors for providing you long-term loans for car purchasing. These money lending service providers use the tricks of motivating customers to opt for car loans that have longer tenure to repay.
On the other hand, the short-term loans for the vehicle have higher interest rates. A car buyer has to borrow a minimum of $5000 to have the privilege to continue dealing online. Calculate the exact amount to repay.
Car Refinancing
You can refinance your home to have relief from the possible foreclosure. However, your car can be refinanced. Replacing the old car loan, you can move to another company to get a small loan to clear your existing auto loan. It will minimize your monthly rate of interest. Same time, your car loan repayment period will be longer.
Do Not Negotiate with Car Dealer for an Auto Loan
If your financial resources are not adequate to give you the support to purchase a new car, you can talk to the auto dealer for a quick car loan. Ultimately, your car dealer will get the advantage by playing tricks with you.
For example, the vendor tries to squeeze more dollars from your pockets by giving you an instant financial backup at higher interest rates. Therefore, do not negotiate with him. Take competitive free quotes from different companies but you must not fall into the traps.
Do Strategic Calculations to Pay Back the Car Loan
It is not a supersonic rocket that makes you debt-free within a minute. You have to design the plans how to clear all pending dues early to steer clear of heavy loss. The early repayment program will save you but the car dealer will have to experience a financial downturn.
See, by paying an additional $100 every month, you will be fast to pack up your loan amount much earlier than the stipulated timeframe. If your loan repayment period is 60 months, you will be able to pay off all the EMIs in 50 months.
So, you have good savings finally. However, your superior car dealer will impose extra hidden charges to adjust the amount.
Well, do one thing strategically. Make shorter and quicker payments every fortnight to have the mileage. If your repayment amount by the end of every month is$646.35, split it into $323.18 for payment clearance every 15 days gap. It will be an opportunity for a debtor to save $3878.10 approximately.
Try to Buy a Cheap Car for Easy Loan Repayment
If you are not a wealthy person with a sound financial status, you must not handpick an expensive smart aerodynamic vehicle. You will have to be responsible to pay higher interest rates on your car loans. The easiest way to pay the car loan faster is to have the local brand cars. It will be affordable to maintain. The car loan repayment will not be a burden for the borrowers.
Do Not Prioritize Extra Auto Loan Add-ons
The auto loan may cover various niches like extended auto warranties, guaranteed asset protection/GAP, tire servicing warranty, and others. It will expand your budget to make you bankrupt. Therefore, cut extra add-ons to trim the EMIs for reducing the loan amount.
You should not invest money for buying luxuries until you clear this updated car loan. An economical employer has to fight with the worst recession. Therefore, extra expenses will prevent you from making the early repayment of the auto loan.
You have to earn more money to pay your car dealer so that you will have no headache driving the vehicle.
Increase the amount of monthly EMI by adding a few dollars for fast repayment. If your EMI is $514, make it a round figure – $600 to pay. This round-up repayment is also a benefit for a car purchaser to manage the car loan.