 |
Okay. You know which car you want to buy. But with
so many "offers" out there, you are naturally
confused about whether you are getting the best
possible finance deal. Let us make your life really
simple.
The rate of interest that you pay for a car loan
is determined by various factors. Please take a
moment to understand the dynamics, because it is
actually quite simple and will make the entire working
transparent to you:
|
| |
The
Base Rate |
| This
is the rate of interest at which the financier
is willing to do business.More |
|
|
|
| |
Dealer
discount |
| Different
dealers hold different levels of stock. A
dealer holding higher stocks may be willing
to part with a higher discount.More |
|
|
|
| |
Agent re-subvention |
| Agents
market the financier's loan schemes to you
and complete all the paperwork on behalf of
the financier.More |
|
|
|
| |
Borrowing
rate |
| From
the above you would observe that you may get
your loan at 9.5% per year even though the
car finance.More |
|
|
|
|
|
|
|
