Best way to finance a new car purchase in Delhi

Best way to finance a new car purchase in Delhi

Posted on November 24, 2021

When buying a new car in Delhi, a question that will come up is how you plan to finance the purchase. There is a plethora of lenders out there and it can seem nearly impossible to figure out who is going to give you a good deal.

This is why we asked our Delhi auto loans team to put together these suggestions. To help make the car buying experience a more streamlined experience.

Creditworthiness

Your creditworthiness plays a key role in whether you can get a Delhi auto loan and if you do qualify then at what rate you end up paying.

To lockdown prime interest rates, the minimum credit score is 680 but that could change at any time so you should aim for 700+ to be on the safe side. You can get your latest credit score by looking at Mogo.

While looking at your credit score, take note of any errors in your name, address, or accounts on your credit report. Even a simple mistake could impact your score.

If your score is well below the 700 mark, you have to figure out why the score is so low, there is a good chance that you missed a couple of payments and those are weighing down your credit score.

Fortunately, you can easily fix this problem by paying your bills on time and making it a point to never miss a payment again. This step will take some discipline on your end but it is worth it over the long term as your credit score rises.

Sources of income

The credit score is one component of the Delhi auto loan underwriting process but there is another component and that is your income. All lenders will want to look at your income to determine how much you make, whether it is stable, and if you have enough disposable income to repay the car loan.

Lenders usually ask for payslips, bank statements, income tax documents or a combination of these so do yourself a favor and print them up.

After you have your income documents and credit score in place, you will still need help to get the most preferential interest rates possible.

Dealerships to the rescue

This step is where things get interesting, while looking online you probably have seen websites that claim they have the lowest interest rates but that is impossible. No one can make a statement like that because the interest rate quoted is based on an individual unique set of circumstances.

The interest rate that I receive would be different than yours because we have different income and credit profiles. To get the best possible rates, you need a dealership to try and line up a car loan for you.

You will have peace of mind knowing you are getting the lowest possible auto loan because the dealership has gone through their entire network of lenders to identify the ones willing to give you a competitive offer.

With this information, you will have no issues financing your new car and save money at the same time.

When you’re ready for a car lease or loan, get in touch with the Delhi auto loan experts at Northway Ford for great deals on auto finance.