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Car loan is a personal loan used to purchase a new or used car. When you’re buying a new car, it’s important not to rush into it. Do some research first to make sure you find exactly what you want.
Decide what you want to use the car for. Is it for business or pleasure or both?
Is it for you personally or for someone else in the family? What features would you like it to have?
Consider all the points.
You’ll need to work out a budget to ascertain the amount you’ll comfortably be able to repay. So have a serious look at your bank statements from the last 12 months to identify your spending patterns and surplus funds.
At the end of the day, what you can spend on your new car is the money you can afford to borrow - plus any savings, gifts or proceeds from the sale of your current car – if you have one. Don’t forget to allow for stamp duty and other transfer costs, as well as any other expenses that may arise.
Things To Remember: Buying a car can be an exciting experience. But try not to get too carried away and make a spur-of-the-moment decision that you may later regret.
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Check the prices.
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Have it checked out mechanically.
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Take it for a test drive.
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Have it checked for prior ownership.
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Check whether the car has been used as security for a loan.
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When you buy a car privately, you have no right to a refund if you change your mind. There is no "cooling off" period.
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When you buy a car privately, you don’t receive a warranty. So you will be unable to have the seller fix anything that may be wrong once you’ve driven away.
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It’s up to you to check the credentials of your seller. At the very least, don’t be afraid to ask them for a driver’s licence as proof of identity.
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Make sure the car has a roadworthy certificate where this is necessary and allow for stamp duty and any additional repairs to the car in your
budget.
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Make your offer in writing. It only needs to be a note but it may help avoid disagreements later. And always make sure you receive a receipt from a private seller.
Car Insurances: Its
important to protect your investment. For that there are two main types of car insurance available:
1. Comprehensive Insurance: Covers all accidents and damage to your car and other cars and property.
2. Third-Party Property: Covers damage that your car causes to others’ cars and property but not to your own car.
Insurance has become a highly competitive market, so shop around to find the best deal.
Most insurance companies can give you a quote or even arrange your insurance over the phone, with no papers to be signed until they arrive in the mail. In the meantime, your insurer will give you a cover note number which can be used if an accident occurs before your insurance papers are lodged.
Remember never drive an uninsured car.
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