Planning to take a car loan? Evaluate offers from dealers thoroughly

Lending partners at times charge a higher interest rate to pass on hefty commissions to dealers

• When purchasing a car, many buyers go for the lender that has a partnership with the dealer. This should be avoided
• These lenders charge a higher interest rate, which allows them to offer a hefty commission to the dealer
• Compare rates online before you finalise the lender
• Sometimes, a dealer may offer a discount on the car value if you take a loan from its partner lender. Sometimes, a manufacturer may tie up with a lender and offer discounts to push up sales. Again, compare your total interest outgo in this case with other lenders
• When evaluating an auto loan, check whether the lender