People no longer hesitate to purchase a used car and second-hand car finance is the best way to easily buy your dream vehicle. The used car loan lets you have the liberty to buy the car of your choice by paying small instalments every month. You can buy a car at reasonable interest rates and flexible repayment options.
Ride your four-wheeler with the used car loan, as the financing procedures for used cars these days are hassle-free and with low-interest rates. The approval for the low-interest personal loans is made quicker.
What is a pre-owned Car Loan?
A pre-owned car loan or second hand car finance is a loan that one can utilise to buy a used car. The loan approval will depend on the age and condition of the car and the valuation done by the lender.
Documents Required
Check for the car documents carefully before you furnish them before you apply for the pre-owned car loans. Correct and absolute documentation will help you in fast loan processing so that you drive home your car early. Generally, loans are discarded owing to flawed applications. You can be certain of your loan getting processed quickly, if you happen to submit clear documentation and a complete application
Benefits of a Loan for Pre-Owned Cars
Used cars are cheaper compared to brand-new cars; your EMIs will also be smaller and less expensive.
Eligibility Criteria
It is important to check beforehand if you are eligible for a loan for a used car loan to avoid rejection of your loan application.
Used Car Loan Fees & Charges
When submitting your application for a pre-owned car loan, appreciate that in addition to the interest, there are some processing and other charges. Let us understand them.
Processing Fee:
You have to pay a nominal, one-time non-refundable loan processing fee on the loan amount.
Other Charges:
Various other charges related to the documentation, stamp duty registration certificate, amortisation charges are payable.
Loan Foreclosure Charge:
In case you plan to foreclose the loan earlier than its due date, you may have to pay a foreclosure charge to compensate for the loss of interest for the lender.
Loan tenor
Up to 95% of the car’s value ranging from Rs. 50,000 to 10 Lacs is available as a lowest interest personal loan, the tenor varying from one to five years.
Choose the Loan Tenor
The loan tenor is a necessary factor to think about for a used cars loan. Work out your affordability by using the EMI calculator before applying for the loan. The result will give you an initiative about the monthly EMIs and the number of years you need to clear your loan. Properly planning your monthly instalments will facilitate you in planning your second-hand car finance properly.
Online Payment Options
Digital is convenient. With the tap of a button websites and mobile apps help you calculate and make payments easily.
Down Payment
Check for the amount of down payment that you must pay the lender before committing to it. If you are successful in getting 95% as the loan amount from the lender, then you have stuck as a good deal.
Read the Fine Print
Read the fine print carefully as the lenders charge processing charges and penalties for the car loan amount. Make sure that you be aware of penalties and all the costs involved in the finance.
Factors Concerning the Price of a Pre-Owned Car
The main factors influencing a used vehicle’s value are mileage and condition. In addition, options, location, and colour also play a role. More the car has travelled, the more is the mileage; more is the wear and tear. A prospective buyer would be less interested to pay a higher price for a highly used car. Buying a pre-owned car with a loan requires various checks and inspection.
Conclusion
Buying a car these days is a necessity rather than a symbol of luxury. By using an online eligibility check for personal loans, you can also compare loans offering low-interest rates from different financial institutions before selecting a loan takeover.The process of buying a used car is more time consuming than buying a new vehicle but is recommended for first-time car owners and for people who are on a limited budget to go in for pre-owned car loans.
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