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Auto Loans - A step-by-step guide to garner the best car loan

Want to buy a new car in 2010? Well, the process itself is not very arduous. But you certainly need to take the right steps to garner a good deal.


For starters, get in touch with as many lenders as possible. Once they have made the offers, negotiate for the best interest rate. If there are any special offers, go through them carefully for the fine print.


After finalising the lender, you will need to provide a whole lot of supporting documents. These would include identity proof, proof of income and residence proof. You will be required to produce copies of your I-T returns, salary slips, bank statements, passport, driving license and other relevant documents. These vary from lender to lender.


As proof of identity, you can furnish acopy of your passport, drivers license, voter ID or PAN card. Any one of these documents (with your photograph) is proof that you are indeed the person you profess to be. A document is considered valid if it bears the address of your current residence. If you stay as a tenant at a place different from the one mentioned on your ration card, passport or voter ID, you can produce utility bills (electricity or telephone) of the place as proof of residence.


For income proof, salaried people need to submit their latest salary slip, Form 16 for the last financial year, and their bank statement for the last six months. Self-employed people need to provide their I-T returns for the last two years as proof of income. After submission of documents, it is time for the field investigator to visit your home to double-check the facts provided in the documents, such as your place of residence, tenure at work place, and so on.
It is essential that you are present during this visit to clarify any query that the investigator may have. Otherwise, the investigator might not get all the facts clearly and could report that the facts you provided do not actually add up, forcing the lender to reject your loan application.
The loan is approved only after the lender is satisfied with your documents. The lender then disburses the amount through cheques or demand drafts (DDs).


While the loan process is complete, there are still a few things that you need to keep in mind before you drive away in your new vehicle. Ideally, you should have two checks on the vehicle — the pre-registration check and the pre-delivery check. Both consist of the same check points. The idea is to ensure that the car you choose is the car you drive out of the dealership.


Read the papers properly. Make sure all the blanks in the contract are filled in. Your paperwork should include: Sales certificate, all payment receipts and registration certificate (RC) or temporary registration certificate. Check if the insurance is adequate, valid and active. Also, check for original pollution under control (PUC) certificate (valid for one year). And of course, check the spelling of your name on all the papers.


In the owners manual, check the warranty card for the car, free service coupons, warranty card for the battery, tyres and all other accessories and extended warranty details (if opted for). Check roadside assistance contact details, dealership and service personnel business cards.
If any payment formalities still remain, carry along the relevant post-dated checks (PDCs) or cash or a credit card. If you have a preference for a particular day/time for the delivery (for auspicious reasons), inform the dealer well in advance. Always take delivery in broad daylight, since artificial lighting or insufficient lighting at night can be misleading.

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