Skip to main content

WHAT ESSENTIALS TO REMEMBER BEFORE APPLYING A USED CAR LOAN?


Undoubtedly, the popularity of pre-owned cars has rapidly increased over the past decades and has in fact exceeded the number of brand new cars being bought every passing year. However, a car is an ever depreciating asset but many people find it financially good to go for second hand vehicle rather than investing in a new car. As everyone cannot rustle up the funds needed to own their own vehicle, so purchasing a car of your own choice has become easier with the incredible range of used car loans available in the market.

In order to make your purchase financially sound, many banks and NBFCs in lending market are offering used car loans that have been specifically tailored to suit your needs. This loan scheme make it possible for individuals who prefer to buy a second hand or pre-owned car over a brand new car to actually get their hands on their asset of desire. Many of the pre-owned car dealers help you to avail a used car loan at hugely discounted price as well as you can "Apply For Used Car Loan" with fantastic options.

Features of Used Car Loan: The used car loans are somewhat different in features as compared to the new car loans that are available in the market.

  • Usually, the loan amount for used car loan is offered about 60% of the on road price which may be increased to 80% in some cases. 
  • The maximum age of the pre-owned car should not exceed 3-5 years at the time of purchase.
  • The processing fees would be charged as in some small percentage on the used car loan as compare to new car loan.
  • The repayment period for used car loan is not extendable beyond 3-5 years.
  • One of the major benefits of second hand car loan is that the EMI for it may be lower than that of new car.
  • The interest rate may be different for different lender as per the terms and conditions.

  • The down payment shall not be less than 20% in case of pre-owned car.

Essentials to remember before applying a used car loan: There are some essentials to be borne in mind of borrower while taking a used car loan.

  • Generally, the documentation linked to used car demanded by non-banking finance companies for approving the loan is much lesser as compared to traditional lenders.
  • You may have a chance of bargaining in case of second-hand car loan in various aspects such as down payment amount, rate of interest, tenure and processing fee.
  • You can also waive off the prepayment penalty in case of pre-owned car loan as compared to new car loan.
  • As the tenure for used car loan is shorter, one has to be prepared for higher EMIs in this car loan.

The idea of pre-owned car loan is getting popular among people either they "Apply For Used Car Loan Online" or offline, who do not want to spend additional money just to own something that is unused earlier.


Labels:

Comments

Post a Comment

Popular posts from this blog

GUIDE TO BUYING A USED CAR: FIGURING OUT INTEREST RATES

As of now, in the fast-paced universe of today, possessing a car is neither a luxury nor a need. While considering the practicality of purchasing a used car, the vast majority of individuals arrive at this resolution. In any case, financing such a purchase can be troublesome. This blog aims to impart information regarding the intricacies of used car loans, with a particular emphasis on the critical component of interest rates. What is a Used Car Loan? A " Used Car Loan " is a financial product designed to assist individuals with the expense of purchasing cars. A used car loan, in contrast to a conventional car loan for another vehicle, is designed to accommodate the extraordinary circumstances associated with purchasing a used automobile. Factors Influencing Used Car Loan Interest Rates 1. Credit Score: An essential part of loan applications, the credit score significantly impacts the interest rate determination process. Individuals must maintain a decent credit history bec
Post a Comment
Read more

EXPLORING OFFERS AND OPPORTUNITIES OF USED CAR LOAN

Many individuals instantly consider purchasing a brand-new car when they are thinking about buying a vehicle. The used car market has, by and by, as of late, acquired colossal traction. The availability of used car loans and the alluring motivating forces they give that may be of some value are two important factors adding to this development. In this article, we'll dive into the importance of used car loans and investigate some alluring " Used Car Loan " options that could be useful to you to make a financially wise choice while purchasing a pre-owned vehicle. Why Opt for a Used Car Loan? 1. Cost-Efficiency: For individuals hoping to purchase a vehicle without failing, used car loans are a financially mindful decision. While used cars have already encountered this early depreciation, new cars can lose as much as 20-30% of their value in their most memorable year. In this sense, used cars offer better value for your money, and a used car loan can assist you with getting
Post a Comment
Read more

THINGS TO KNOW ABOUT BUSINESS LOAN AND BUSINESS LOAN INTEREST RATES

Admittance to suitable and sufficient financing can distinguish between a business flourishing or battling to remain above water in business ventures. Business loans have arisen to help businesses, giving the fundamental money for development, extension, or even conquering financial obstacles. Here, you will investigate the universe of business loans, with a sharp spotlight on business loan interest rates, assisting you with pursuing informed choices for your endeavor's financial future. Understanding Business Loans Business loans are financial instruments intended to give organizations the capital they need to operate, develop, or address prompt financial necessities. These loans can be utilized for different purposes, like beginning another endeavor, expanding an existing one, purchasing equipment, covering operational expenses, or refinancing existing debt. Business loans are regularly presented by banks, credit unions, online lenders, and other financial institutions. The terms
Post a Comment
Read more