It is understood that owning a car offers great comfort and convenience. Especially now, a car is no more a luxury, but a necessity. For many people, it makes more sense to buy a used car as a new vehicle can cost a great deal more. A used car that is in a good condition does not come cheap, but would still cost much less compared to a new one. Today, with a
used car loan financing option, you can avoid digging into your savings or using all your liquidity to buy a car. Availing a loan is a great way to raise funds for your dream ride.
Applying for a loan to buy a used car offers several benefits such as:
Maximum funding for your car
People mostly prefer used cars because they are more affordable compared to new ones. Today, many financial institutions are willing to advance loans to buy used cars, that too up to 70% to 90% of the cost of the vehicle. Of course, a
used car loan calculator will consider several factors such as the make and model of the car, its condition and more before calculating the loan amount.
Also Read: How to arrange a loan for a pre-owned car? Does not dig into savings
Keep your savings for emergencies intact with
second-hand cars with finance available. Taking a used car loan means that you need not diminish your bank balance for buying the car.
No more waiting
Make
life easy with a used car loan in India and take home your ride soon as loans for used cars are processed in just a few days. You need not save, scrimp and wait for months, sometimes years, to own a car.
Credit score
Please ensure that you have a decent credit score so that you don’t face any difficulty while availing a used car loan.. In fact, by paying your monthly instalments on time you can use the opportunity to build or
improve your credit history.
Eligibility
Numerous financial institutions offer loans to buy a second-hand car and the eligibility criteria differ from lender to lender. Some general criteria are:
- Employment status: The lender may require the applicant to be salaried, self-employed or engaged in agriculture.
- Age limit: Most institutions offer loans to individuals in the age range of 21 years to 65 years.
- Income: Each lender may specify a certain monthly or annual income for the applicant.
You will need to check if you are eligible to avail a used car loan by going through the eligibility criteria on each lender’s website.
Also Read: Financing Your NEW Used Car Choosing the right lender
Check online and ask friends and family if they have availed loans to buy second-hand cars. Compare the interest rates and terms or repayment offered by each lender and find out about the services offered by the various institutions. See which lender offers the maximum loan amount. Also, check the tenure and interest calculation method in addition to the interest rate. Some lenders may offer used cars with zero down payment
, which means you will not have to advance any money from your pocket. Enquire about pre-closure penalties. Study all of these details before making a final decision.
How to apply
- Look for reputed dealers selling second-hand cars and inspect the cars on sale. Take a test drive, compare the features and then select the car you want to buy.
- Finalise your lending institution and apply online; select the amount and tenure you want.
- Submit the documents asked for and wait for approval.
Also Read: All Your Car Loan Questions Answered Conclusion Used car loans are usually processed with minimal hassles. Once your approval is through, you can simply drive home your car and enjoy a more comfortable and convenient commute to work, road trips with friends or go on drives with the family. With easy loans for used cars, you do not have to postpone your dreams any longer.
