As the demand for used cars rises in the Indian market, the financing avenues have multiplied too. Institutional financiers today provide dedicated loans with favourable features as loans on old car to enable second hand car purchase for aspirants.
While financial ventures like used car purchase are in themselves opportunities with discounted pricing, second hand car loans further enable deferring these expenses so that the load for immediate financing remains minimal on the borrower. It is because once these loans are availed, the borrowers can repay them in easy EMIs spread over long tenures.
Further, they enable easy availability of the type of car model of the desired make that you are willing to purchase. These loans thus bring even the costliest of used vehicles within one’s financial reach, thus automatcally gaining a favour among used car purchasers. Availing these loans is simple and straightforward too. You just need to take care of a few aspects to avail funding right in time and as much as required to financing vehicle purchase. Here’s a detailed mention of steps to complete when applying for your loan on old car.
Crucial Steps to Complete When Applying for a Used Car Loan
Choose the car model that you wish to purchase
The initial step to complete when financing a used car is to select the vehicle of your desired make and model. As lenders today provide financing for all cars, you can choose the car model as per your liking. Another great aspect of this financing is that the expansive second hand car market. Allows you to choose the desired vehicle available in good condition to financing with a loan on used car.
Determine the budget as per affordability
Once you have selected the car, get into the budget aspect to finalise a purhcase price for as much as you can afford. You can check out these prices wth various used car sellers to strike the most affordable deal with the best car condition.
Sort through purhcase options as per car condition and finalise
The aspect of car condition extends within the vehicle selection steps. Needing elaborate info on previous use details and number of previous owners. The lower these numbers the better for your vehicle’s conditions. For instance, a lower total distance covered keeps the overall vehicle depreciation low, thus keeping it long-lasting. Also, previous damages, repairs, and insurance claims thereto matter.
Consider vehicle’s age before deciding
While lending institutions leave the vehicle’s choice to the borrower. The rules can be pretty stringent when it comes to the used car’s age. Ideally, a vehicle not older than 3 years is considered eligible for the purpose of financing a loan on used car.
Compare interest rates and charges from different lenders
Given that the risk involved with used cars can be high, the rates tend to go a notch higher than those for new car loans. Nevertheless, eligibility of the candidate and vehicle can help find an affordable used car loan rates.
Check out applicable features
Before finalising your loan option, also compare through the features and facilities available so you find the best loan option to borrow. It can help manage your repayments easily.
Fill up the application form and complete documentation
Finally, you can proceed to apply for the loan with your selected lender. Choosing to do so online simplifies the application process. Make sure to provide all details accurately when filling up the application form. And keep all personal and vehicle documents ready from previous owner/s for submission. This should streamline the complete application process.
Check your credit score before applying for a loan on used car and work on its improvement if held under the 700-mark. Consequently, check that you fulfil all eligibility requirements to secure easy and fast approval of your loan.