With the constantly changing customer mind-set, more and more car manufacturers are plying their wares in the Indian market. Experts suggest that upwards of 80% of all cars bought are bought on loans. Getting car finance has become easier than ever, along with increased manufacturing bandwidth car manufacturers have also realised the importance of helping buyers finance their purchases.
Bank loans, while the most easily available option, come with some serious pitfalls. More and more non-banking financial service companies are also getting into the market of financing car loans. These non-banking service provide a far more competitive rate of interest along with a better understanding of the machine you are buying and the insurance and/or warranty that you might need.
Here are some drawbacks of relying on banks for car loans:
Not all banks cater to car loans specifically, and many do not really have enough offers to give it a competitive advantage. They may offer you higher interest rates or set a fixed duration of payment. These are not the best bet to avail your car loan.
Lack of Preferred Status
If you are not familiar with the bank, or have not had any transactions with them, you may not be able to get a preferred status. This preferred status will ensure that you get the best interest rates and product offerings from the bank. Going to an auto-finance company like Volkswagen Financial Services, at a time like this, would ease a lot of your hassle.
Third Party Loans
If your bank provides outside financing, it may be difficult for you to work with this third party instead of your bank. Instead of getting funds which are sourced from a third party, it’s better to opt for non-banking financial services. Have complete clarity on this front before you sign anything.
Benefits of non-banking financial services
They Know the Job
Non-banking financial services like Volkswagen Financial Services, have a long standing experience of exclusively working with car loans. These companies can not only provide you the best possible deals but also help you make the right choices when it comes to getting the required warranty and other details regarding the purchase sorted.
Open to Negotiations
Dealers at non-banking financial services are, more often than not, open for communication and negotiations for rates. You can definitely try and bargain the rates to a level you would be comfortable with. It is, however, not so that the rates can be bargained down to an obscene level, there are limits to that as well.
A Wide Range
Since non-banking finance services usually operate in niches, they can offer you a far bigger range of products and services to get your car loan approved. They can offer you far better deals, over and above making sure that you are getting the package you desire instead of settling for something that your bank hastily cobbled up. These institutions come with a long standing history and understanding of the car market and are designed to provide the clients the best possible car loan advice.
Click here to get expert's advice: http://www.volkswagenfinancialservices.co.in/