Best terms for a car loan

Dear Mr. Tan,

What should I look out for when buying a new car? How can we have a better deal like car insurance, car loan etc?--

REPLY:

Read this faq about motor insurance:
http://www.tankinlian.com/faq/motord.html

I suggest the following approach to get your car loan.

Ask your dealer what is being offered with the package. They usually include a car loan offered by their tied up bank.

Ask for the following:

What is the amount of the loan
What is the monthly replayment and the number of repayments
What are the additional charges (if any).

You can then call 3 other banks and ask them to offer their loan to you for the same amount of loan and number of repayments.

You can compile the differences between the offers as follows:

Amount of loan: $xx,xxxx
Nr of monthly replayments: xx repayments

Bank      Amount of                 Additional
           monthly repayment          charges
X
Y
Z

X is the bank tied up with your motor car dealer. Usually, they offer the best terms (but not always).

When you have obtained the information, you can share with me.