Buying a second-hand car by taking a used car loan is not a bad proposition these days as it is a value for money option if you are hard-pressed for funds. Several banks and private lenders in India have realized the potential of the resale of used cars and they are more than willing to offer a car loan for this purpose. If purchasing a brand new dream car is out of your budget and you don’t have any qualms about buying a second-hand car that has been maintained well, second-hand car finance will work just fine for you. With limited finances, you can now easily raise yourself to the status of car-owners, thanks to the used car loans being offered at competitive rates. The depreciation rates, as well as the insurance costs of a used car, are lower than that of a new car.
When you decide to buy a used car, you are making a smart and practical choice and you can get a used car loan for a wide variety of cars ranging from hatchbacks & SUVs to premium sedans. Banks and private lenders extend loans up to 95% of the car value and provide quick disbursal of loans with flexible EMI repayment options.
The best source to find a used car is an online search by visiting different websites that feature a wide range of used cars with technical specifications and pricing. These web portals also feature used car loan EMI calculator to calculate interest rates and monthly installments you are required to pay once you buy a used car.
Finding the right used car that fits your budget and aspirations requires a lot of groundwork and you need to take a lot of things into consideration like the condition of the car, its maintenance record, and it’s exterior and interior. Apart from buying a house, your car might be the most expensive purchase therefore it makes sense to consider a used car rather than a new one. A well-maintained used car will save you from burning a hole in the pocket as well as from compromising on the quality.
The used-car market in India is flourishing thanks to their affordability and easy availability of used car loans at competitive interest rates. Used car sellers in India have become more proactive and organized as they have realized people’s preferences and ensure that the used cars are certified and well-maintained.
Availing second-hand car finance has become a simplified process keeping the car buyer’s convenience in mind. You now have the option of applying for a car loan online from the comfort of your home. Simply visit the websites of banks and car financiers and you will get step by step guide for applying for a used car loan within few clicks. Once you fill-up the application form and meet the eligibility criteria for the used car loan, you would be prompted to upload required documents for verification of your credentials. Your used car loan will be sanctioned by the bank within a week after verifying your credentials and you can then take the delivery of your cherished car from the dealer.
You can avail of a used car loan of up to INR 50 lakhs to buy a second-hand car as there is a large segment of buyers who prefer to buy luxury used cars at half the price of a new car. Banks are more than willing to disburse loans for second-hand high-end luxury sedans and SUVs as they get hefty sums of money as the interest rate on these luxury vehicles.
Though interest rates for used cars are higher owing to the risks associated with both the buyer and the lender, the used car market is growing leaps and bounds with every passing year. With a small down payment, you can now get a used car loan up to 95% of the vehicle value and you also get the flexibility to decide on your loan amount, loan tenure, and EMI period. You can also opt for a convenient mode of EMI payment every month in the form of ECS (Electronic Clearance Service), an auto-debit facility where the EMI is routinely subtracted from your bank account.
Buying a used car by taking a second hand car finance can provide you a multitude of benefits. Opting for a used car will make a huge difference to your finances. Additionally, if you are planning to opt for a used car loan, you need to have a good credit score with credit rating agencies to qualify for the loan.