Advantages Of Taking A Pre-Owned Car Loan

Introduction

There was a time when owning a car was a status symbol. Today, however, a car is a necessity. Public transport is getting crowded, the cab services are becoming costlier and the distance between workspace and home is only increasing with better job opportunities springing up around the main city limits. From dropping kids at school to commuting comfortably to the office to visiting friends and relatives regularly, the reasons to own a car are many and diverse. But not all of us have enough savings or budget to buy a brand new car with ready finance. But there is an easy way to buy a car without stretching the budget—by opting for a fully functional pre-owned car. Because of its affordability and the wide range of vehicle options available, buying a pre-owned car allows you to drive home your favourite four-wheeler without much financial stress. The icing on the cake is the easy loan process offered by Hero FinCorp which makes the whole process extremely convenient.
 

Things You Must Know About Used Cars

Before we dwell on the many advantages of buying a used car via pre-owned car loans, here are things you should know. The market of pre-owned cars is expanding at a great pace and in fact, is giving tough competition to the new car market today. Another significant cause propelling the trend is the easy availability of pre-owned car loans. Several financial institutions offer attractive terms to the customers. Just like it is crucial to choose the right car for your family, it is equally vital to opt for the right lender who understands your requirements and constraints.
Hero FinCorp's Pre-Owned Car Loan has made many customers happy car owners via its simplified and transparent process. It offers the best interest rates.
 

The Relevance of Second-hand Cars

Choosing a pre-owned car over a new car has many benefits such as:
 

Affordability

There’s a sizeable price gap between a used car and a new one. The value of a car starts depreciating from the moment it is taken out of the showroom. Simply put, you pay much less for the same car if you buy it after it has been used for one or two years. 
 

More Car Choices

The growing market with multiple players also leads to a huge pool of cars to choose from. Customers can choose from a wide range of cars in terms of manufacturers, models, engines, colours, kilometres run, and manufacturing year, among others.  
 

Cheaper Process

A brand new car comes with added charges such as GST and road tax. There is no need to pay these additional charges while buying a used car. The insurance rates are lower for a used car and the certification process can be done easily.

Less Tension

You are more carefree while driving a used car as opposed to stressing out over not getting a dent in your new car. You will always think twice before taking your new car to narrow lanes and may lose your calm over a little scratch or a flat tyre. Driving your own car should be a matter of joy and not an unnecessary heartache.

Slow Depreciation

Used cars are already past the maximum depreciation stage and depreciate rather slowly as the car ages. This means that you can sell your pre-owned car almost at the rate you bought it in the next few years.

Easy Finance Options Available

While many websites are selling certified used cars, many financial institutions are offering a loan amount up to 80% of the car’s market value.    

Warranty on Repairs

For a second-hand car buyer, getting a warranty is a win-win situation. A repair warranty is included when you buy a car from an authorised dealer. With the inclusion of a warranty, you get nearly everything a new car buyer gets.
 

 

Here’s How Hero FinCorp Solves Your Pre-Owned Car Loan Problems

Easy Documentation Process and Eligibility Criteria

Our documentation process is as easy as it gets. We require your KYC documents such as Aadhaar Card, PAN card, address proof, age proof, car valuation report, registration, and insurance papers to evaluate the loan amount and for verification purposes.
Both salaried and business owners are eligible. While salary slips work as income proofs for the former, the latter can submit their bank statements.
If you are still not sure whether you are qualified for a pre-owned car loan, visit the Hero FinCorp website and run a used car loan eligibility check.
 
ALSO READ: Checklist For Your Pre-owned Car Loan Application

High Loan Amount

With the easy availability of pre-owned car finance, you no longer have to compromise on your dream car due to financial restraints. Hero FinCorp offers used car loans ranging from Rs 50,000 to Rs 50 lakh. Furthermore, if you decide to buy a new car after a few years of driving your old one, you can take a top-up loan against your used car. Borrowers who have made on-time EMI payments are eligible for a top loan with an LTV of up to 175% on their pre-owned car finance.

Quick and Hassle-free Approval

If you have a decent credit history and meet other eligibility terms, you will most likely get the loan. The loans are sanctioned for both certified and non-certified cars of different models. The whole process from application to disbursal of loan is done in a hassle-free manner and sometimes as quickly as in 48 hours.

Competitive Interest Rate

Although the interest rate on a pre-owned car loan is high due to the higher risk involved, you may still be able to get a fair deal if you consider the following variables:

• You can make a larger down payment to secure a lower pre-owned car loan interest rate.
• Before making a decision, look at the car's age, condition, and documents.
• Choose a pre-owned car loan with a shorter term.
 
ALSO READ:  Getting The Best Interest Rate On A Used Car Loan-Everything You Need To Know
 

Cost-effective Repayment Options

When you apply for a Hero FinCorp pre-owned car loan, you not only get a variety of repayment choices including PDC, NACH, ECS, and more but also get flexible repayment terms. This means you can select a repayment period with an EMI that fits your budget. To calculate your EMI beforehand, use Hero FinCorp's used car loan EMI calculator.

Price Negotiations

Having a pre-approved pre-owned car loanoffer might help you seal a better deal on your used car purchase. Dealers often attempt to deflect your attention away from the EMI to deceive you by altering the cost of additional accessories in the agreement. However, when you have a pre-approved offer in hand, EMI concerns fade away and you may be able to get a better bargain on a used car.  

To Conclude

A used car offers great value for money and can be bought by paying very low EMIs. At the same time, it offers the same benefits as a new one. Especially for first-time car owners, a pre-owned car is a practical choice for many reasons. So, get ready to drive your dream car home with our easy pre-owned car loan options.
 

Disclaimer: This post was first published on 29th March 2019 and has been updated for the latest information, freshness, and accuracy.