While getting your car financed in Sweden, don’t be reliant on the car dealer. We know it seems easy to get a loan without making another trip but it might hurt you in the long run. A car dealer might be duping you in order to get a commission from the financier. So always look for other options while getting a loan.
Focus on the total loan amount and not the monthly payment
When getting finance we generally look at the monthly payments. It’s alright to calculate the installments to get an estimate. Now the monthly installment discussion should be put on hold. The most important thing is to calculate the total interest to be paid on the money. This makes it sure that you end up paying less money as interest.
Try to get the best deal
When looking for a loan in Sweden, don’t just stop at the next place you find a better deal than the last one. This is not how one should find the loans. You are about to pay your hard earned money to the bank so the interest should be as low as possible. And let the financier know that you are shopping around for the loan and you already have a better option in hand. You are more likely to see a better offer. You will find the best deals online. There are a lot of financial websites in Sweden, such as https://www.billan24.se/, where you can compare different car loans from different lenders.
The interest rates provided by financiers could vary greatly from one to another. The interest rates could be of 2 types, “fixed rate” and “floating rate”. A fixed rate gives a satisfaction of a fixed installment and you can be sure that it will not end up in a shock. One of the best fixed and reducing interest rates is provided by HDFC Bank when it comes to a car loan. You can compare the interest rates for HDFC bank car loan, ICICI car loan, etc. online. With a floating rate, there is always a chance of decrease in the interest rate but there is an equal chance of increase too.
Prepayment of the loan
The car loan you are going for must have a prepayment option with no prepayment charges. Though, this option is available mostly at floating rates of interest. But one should always check the charges on the prepayment of the loan. It should be as low as possible if any.
And if there is extra cash lying in a bank account or as an investment, compare the interest on that investment with the loan interest. The idea is to pay the loan early if the interest earned on the investment is less.
Thoroughly read the terms and conditions
While getting your car financed always read the conditions in the fine print. If there is any clause you don’t understand, ask the financier. And get it confirm that the financing is not conditional or contingent. If the financing is “contingent” or “conditional,” the financier can change the terms and conditions later and you could end up paying more. So please read the papers carefully.