The popularity and demand for second-hand car loans are on the rise, and this demand is increasing daily. A loan from many financial institutions to purchase a used vehicle is called a used car loan.
Most people dream of owning a comfortable, safe, and, most importantly, affordable car. However, high-safety premium cars are higher in price, so purchasing a second-hand car is a possible option. Buying a second-hand car is a budget-friendly investment, and it will offer the same features as a brand-new car. Further, you shall benefit more than you think because many financial institutions provide low interest rates for used car loans.
To clear all doubts regarding used car loans, read the following to understand the top reasons for taking a loan for a second-hand vehicle. Car Pe Cash offers the best car loan in Ahmedabad, assuring effortless financing for your second-hand vehicle with top benefits.
What Is a Used Car Loan?
A pre-owned car loan is financial support for an individual who wants to borrow an amount to buy a second-hand vehicle (typically more than 95% of the vehicle's on-road price) and return it within a defined period in easy, equal instalments with a low interest rate. Second-hand vehicles are not expensive compared to new cars, as the loan is sectioned for the previously used car, so the effects of depreciation have already been reduced on the asset.
Top Five Benefits Why You Should Avail a Second-hand Car Loan
Let's examine the primary reasons why you should consider applying for a used car loan today.
Low Rates of Interest
A used car loan has many advantages, one of the most prominent being the interest rate. Additionally, if your credit rating or CIBIL score is better, the interest rate can also be negotiated. Obtaining a lower interest rate makes the loan manageable in later years. Lower rates result in lower EMIs, which will cause less financial strain.
Adaptable Loan Repayment Options
Most credit institutions allow individuals to select the necessary financing, the repayment period, and the EMIs. This will enable them to modify their financial plan and buy a second-hand car when they feel it's the right time.
Minimal Paperwork, Maximum Convenience
Nowadays, used car loans offered by the primary banks require minimum documentation, which eKYC makes possible. eKYC, or electronic Know Your Customer, is an idea where a loan can be competently triggered by viewing the Aadhar Card and PAN card number. These two details can access the credit history of the person, which allows lenders to take quick disbursement of money into the borrower's account.
Quick and Easy Paperwork for Your Loan
The required documentation for a used car loan is straightforward, which makes the loan process easy and quick. The documentation needed to complete the loan application differs from lender to lender. Applicable documents like identification documents, income and asset proof, current address verification, and photo identification must be ready when applying for a used car loan.
Financing You Deserve with Large Loan Amounts
Finally, most second hand car loan have substantial core boundaries, which can go as high as 90% of the used car's present worth. Therefore, in most cases, there is no need to spend much money to own the vehicle. On the other hand, if you make a lower down payment, the amount of the loan you will have to pay off will be higher, and the duration of repayment will also be longer.
Conclusion
Purchasing a pre-owned vehicle makes sense in the current advanced tech world since numerous car lovers classify their space by removing their cars, which are still in great shape. There are various attractive benefits when seeking a car loan to purchase a second-hand vehicle; however, you must fulfil the eligibility requirements mentioned above. To support you with speedy loan processing, attractive interest rates with minimal documentation requirements, and easy repayment terms that fit every person, Car Pe Cash is an exclusively owned finance company, India's leading NBFC brand, and a renowned name in India. To avoid making impulsive decisions on financing the dream car, using a used car loan EMI calculator to assess your EMI is advisable.
Associate with Car Pe Cash and avail yourself of instant loans for all kinds of car loans at your comfort and convenience. As a leading used vehicle finance company, Car Pe Cash delivers adaptable loan options to make owning a second-hand vehicle more manageable and affordable.
FAQs:
1. What are the tax benefits of a second-hand car loan?
Unless a self-employed person or the vehicle is used for business purposes only, no tax benefits of a used car loan are available. Car loan interest payments to assess a business can be considered an usual and necessary expense of your business and excludable from your income tax return.
2. What is the maximum holding time for a used car loan?
The maximum loan term for a used car loan is four years, while the shortest is one year.
3. What are the processing fees for taking a second-hand car loan?
At Car Pe Cash, our processing charge for second-hand car loans is reasonable. The precise amount may differ from case to case, depending on the loan's specifics. We advise you to contact or visit your local office for a quote.
4. What is the age limit for a used car loan?
To qualify for a used car loan, the loan application must meet the age limit mentioned by the lender.