Top benefits of taking a loan on used cars - Pdf Slider

Top benefits of taking a loan on used cars

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Owing a car is a great feeling other than just necessarily. But to find the right car that fulfills your budget requirements and preference is not a cakewalk. Since buying a car is an expensive affair, it makes sense to consider buying a used car so that you can save some bucks.

Why should you go for a used car?

How amazing it is to buy a car of your own and save some money in the process? The concept of a loan on used cars can exactly help you with this. You can fall under the category of car owners even if you have budget constraints. You will be amazed to know that the depreciation rates and insurance costs of a used car are much lesser as compared to a new one.

What is a used car loan?

A used car loan is a car loan that you get from financial institutions to buy an old and used car. The loan amount that gets approved on the car depends on its condition, health, and the age. The total period of the loan ranges from 1-7 years. Also, the rate of interest that is offered on the loan depends on two major factors which are-

  • The credit score
  • The car condition

A high credit score attracts a high rate of interest.

Advantages of going for a loan on used cars

If you find a good financer for your car, your desired vehicle is just a few steps away. To start with, the approval for taking a loan on used cars is a speedy process once your application and document have been verified.

  1. Minimum Paperwork: Nobody wants to get into the hassle of getting the paperwork done be it in case of buying a property or a car. In the case of a used car, you get the advantage of doing the entire process on the online platform. The only paperwork that you are required to do in case of buying a used car and taking a loan against it, is the application form for the loan. The document required is also very minimal and basic. This makes the entire process very comfortable and hassle-free.
  2. High Loan Amount: In India, you get a much higher loan amount for buying a used car than in the case of buying a new one. This is because the government wants to promote the culture of going for a used car in the country.
  3. Unmatched Interest Rates: Though interest rates for used cars are higher because of the risks associated for both the lender and the buyer, some lenders offer unmatched interest rates. You can opt for around 65-80% of the estimated value of the purchased car as a down payment.
  4. Flexible Terms: The loan is offered at flexible terms in the case of used cars. You have the flexibility of deciding the loan amount, EMI period, and loan tenure. You may also choose a comfortable payment method. The method of payment can be online, post-dated cheques, an auto-debit facility in which the EMI is subtracted from your bank account on a routine basis, or may b Electronic Clearance Service.
  5. Pocket-friendly affair: Since the actual amount that is needed to buy a used car is much lesser than buying a new car, the loan amount, the loan amount is also less hence, the EMI amount is lesser. This makes going for a used car an immensely pocket-friendly affair.

The smell of a new car is indeed unparalleled, but buying a used car is the best economical option that is available. Also, used car loans have a lot of features and rebates that are similar to the new car loan but the hassle to get it is much lesser. Starting from the initial value to the long-term spending to even loan availability, everything is easy and readily available in case you decide to go for a used car. In India, you can obtain cars at cheaper rates because of the availability of trustworthy and user-friendly financial options. Just make sure that when you are looking for a dealer who can get you a loan on used cars, he should be a reputed one who helps you in buying your vehicle along with a warranty.