Are you planning to shop for a second-hand car? Is lack of money blocking your lane of driving your dream?
This article will explain to you A-to-Z regarding why you should buy a second-hand car and its financing.
When you plan to purchase a car, you should wisely plan your finances beforehand. Instead of cash expenses, you can opt for an ideal option to buy a second-hand vehicle, which is, second-hand car loan. The used car loan comes with exclusive interest rates and flexible terms, enabling you to conveniently purchase second-hand cars on EMI.
Why should I buy a second-hand car?
With various enticing car model options in the market, you can wonder why you should go for a second-hand car. However, most buyers already have the answer. But, if you are still in doubt or contemplating regarding second-hand car purchase, let us elaborate on the reason a bit.
It is a usual fact that a brand new car can drill a hole in your pocket. Plus, getting a new car loan through a lender involves lots of hassles. Also, the brand new car credit scheme comes with heavy instalments, interest rates and EMIs. Compared to a 3years old pre-used car, a new car can fetch more since the market demand and value are increasing day by day.
Let’s add more facts to the reasoning. Another well-known point is that a brand new car loses 15% of its initial value when leaving the showroom. So, when you can purchase a vehicle with similar facilities that even looks great, runs smoothly and have no prior accident or default records, why would not you obtain it?
Okay, but why should I settle for a second-hand car loan?
When an individual plan to shop for a car, it is advised to plan financial credibility prior. Most buyers prefer a second-hand car loan as an ideal financing mode for a used car purchase in India. Besides, if you have liquid cash in hand, using it to finance your vehicle purchase is not recommended or viable option at all. However, a buyer with adequate liquid money should not expend but invest the value for added betterment.
On the other hand, a pre-owned car loan does not penetrate your pocket since you can purchase second-hand cars on EMI. And the EMIs are easy to bear, convenient and manageable. However, you can find several renowned lenders in India, such as banks, NBFCs, digital lenders, etc., that offers exciting opportunities for second-hand loans to select from. Yet, it is always ideal to choose your financing option carefully and settle with a lender that suits your requirements best.
Advantages of getting a used car loan:
You might be wondering what makes a used car loan such an on-demanding financial product for people. To answer your query, continue reading the following points:
Approval of high loan amount
Under a second-hand car loan, a borrower can apply for a high amount of INR 50 lakhs. And, there is a possibility of getting your appeal approved for the maximum amount. Some Indian lenders endorse the highest credit amount depending on the borrower’s profile and car’s model plus condition.
The second-hand car loan allows you to administer the entire loan process online. The application form is the only paper that you require to submit at the branch formally. Besides, you can upload all relevant documents online on your loan profile on the lender’s website. However, the obligatory records for used car Finance are fundamental and minimal. It makes the whole procedure considerably hassle-free.
The pre-used car loan offers incredible flexibility, allowing you to decide your loan value, EMI period and tenure. You can determine EMI auto-debit payment method at your convenience. It can be online, ECS, post-dated cheques or auto-debit.
Unparalleled Interest Rates
Most importantly, the interest rate of used car loans is unmatched. Though a used car loan owns a risk for both buyer and lender, the interest rates are higher than expected. However, you can find several lenders who offers a more competitive ROI that may suit your requirement.
Financing your vehicle shopping is not that complex anymore as it was before. You only need to ascertain your financial credibility, cash inflow and affordability for the loan. Afterwards, you can effortlessly purchase second-hand cars on EMI.