Some car loans might seem easy, some difficult. But a loan is a loan and you have to research, prepare, and then analyse the best auto loans in Egypt for your requirement.
Here are few things you should consider while applying for a car finance scheme.
- Be aware of your credit report.
Before applying for a car loan, check your credit report first. It will help you identify what type of loan you qualify for and what the limit is. It will also help you identify any wrong inputs or disputes for a more favourable loan plan.
- Research thoroughly for the best rate.
When you are buying a car, you tend to focus on car aesthetics, power, mileage, maintenance forecasts, and even colour availability. While you are at it, also research and get multiple quotes for your loan and compare. In short, do the math and find out how much your loan will cost you in total. Check for seasonal deals or promotions by banks on car loans in Egypt. You can always check National Bank of Abu Dhabi – Egypt’s website for limited-time discounted rate offers.
- Try to opt for a short loan.
A shorter loan is always better. The rate is lower, the hassle is less and financing is easy. Since interest accrues based on the amount still remaining to be paid back, the higher your loan balance and the longer that balance stays high, the more you will end up paying over the course of the loan.
- Don’t always take the dealer’s deal.
The dealer or showroom’s deal might not always be the best. Dealer’s deals are always pretty fixed with low flexibility. Make sure you are getting a good interest rate. Best way is to check with the bank directly as dealers might add a few percentages as their commission.
- Plan an affordable monthly payment.
Target a plan that requires monthly payment under your budget. Some deals might seem great with low interest rates but they might not be appropriate for you. One general rule is that monthly payment should not exceed 20% of your household income.
- Consider the full payment you would be making.
Most people while shopping for auto loans only consider the “purchase price”. At the end of the day, you have to pay back the principal amount along with the interest. It is all about the total payment that you have to make. The number of months, interest rate, financing options, complicated mathematics—all of that doesn’t matter. What matters is what you are paying in total for your car. In addition, there are taxes, licence, and fees (which usually add up to approximately 10% of the value of the vehicle).
To buy cars in Egypt, you have to keep a constant eye on the changing market. The situation keeps changing, so keep looking for better and better car deals.