In the last few years, the used car market in India has expanded tremendously, making second-hand cars an excellent alternative for many individuals. It’s undoubtedly a wise option to buy a used car, especially for those who need to practice driving cars, want another one for their family or cannot afford brand-new vehicles. These days, acquiring a used vehicle is easier than ever since there are even used car loans available to purchase them instead of making outright payments. Further costing less than brand new ones, second-hand vehicles save on purchase price compared to their new counterparts; depreciation rates are lower, and insurance is paid on them. Car Pe Cash is your dependable, renowned used vehicle finance company.
If you are planning to purchase a second-hand vehicle and are concerned about how to acquire a loan for the same purpose, associate with Car Pe Cash for the best car loan interest rates company.
What is a Used Car Loan?
A second-hand car purchase is made easy by getting a used car loan that covers part of the expenses. This means that one can have it financed from a bank or NBFC instead of paying for everything at once, which could be overwhelming. This one depends on the prevailing interest rates in the market. Few banks can refuse to finance most used vehicles but they set certain conditions, such as age limits or whether it’s an imported car or not. Further, some cars may retain higher interest charges depending on the state it is or even the state where it was manufactured.
How Interest Rates Work on Used Car Loans
Depending on lenders, interest rates for used car loans can differ, and accordingly, the total amount you will spend on the loan will be determined. There are two main types of interest rates: fixed and floating. During the entire loan period, fixed rates remain constant, whereas floating rates vary following current market situations. In most cases, fixed rates attract higher premiums than floating rates, but your final interest rate is determined by several factors, such as car age, credit rating, size of the loan, and period for which it should be repaid. Get a car loan for used cars with Car Pe Cash.
Read Also: Ultimate Guide to Financing Your Second-Hand Car Purchase
Why Choose a Used Car Loan with Car Pe Cash: 7 Key Reasons
Here are the top reasons to associate with Car Pe Cash to get a used car loan today. Car Pe Cash is your reliable car loan service provider company.
Affordable Interest Rates
Used car loans are very often acquired because of their comparatively low interest rates. With a good credit score, people can negotiate even better interest rates. These loans are most affordable in the long term as they have fewer monthly payments and consequently do not weigh much on one’s budget.
Instant Loan Approval Process
If you have been banking with a particular financial institution for quite some time, then there is a high likelihood that you will have a pre-approved used car loan. This means that you can access the cash quickly, and the added advantages include low interest, fewer documents to fill out, and quick transfer of funds.
Minimal Documentation
Today, getting a second-hand car loan is easy because it requires minimal paperwork, thanks to eKYC. The lenders use only Aadhar card and PAN card numbers to cross-check if you are eligible through eKYC. This means they can access your credit details immediately, thereby expediting the loan procedure.
Instant Pre-Approval
If you've been with the same financial institution for a long time, you might already have a pre-approved used car loan. This means you can get the money faster and enjoy benefits like lower interest rates, less paperwork, and quick fund transfers.
Flexible Repayment Plans
Most car loans available nowadays have flexible repayment plans designed to suit individual borrowers, making it very easy for them to repay their loans over an extended period. Several modes of payment can be used, such as cash payments, PDCs, ECSs, and NACHs.
Top-up Loan
Top-up loans provide extra funds on top of your current used car loan. These loans often have a low interest rate and can be up to 175% of your current loan amount. You can use the additional funds for any other purpose, such as upgrading your car. The only condition is that you must not miss any of your EMIs.
Significant Loan Amounts
Finally, most used car loans offer a significant amount, up to 90% of the car’s value. This means you don’t need to pay much upfront to get your dream car. However, if you make a small down payment, your loan will be larger and take longer to repay.
Tips for Getting an Affordable Used Car Loan with Car Pe Cash
As discussed, the benefits of a used car loan are as follows: Let’s explore how to get a used car loan with a lower interest rate through Car Pe Cash.
Because these vehicles have low resale value, lenders are often doubtful about providing loans for cars that are too old or not manufactured anymore. The unpaid EMIs may be unrecoverable if you default on the loan. Thus, it’s advisable to buy cars that are not older than three to five years in India. Car Pe Cash provides the best car financing services in Ahmedabad.
Higher the Down Payment
Making a higher down payment lowers the amount that the lender has to finance. In most cases, a borrower can take a loan of up to either 90% of their vehicle’s worth or 50 lakh rupees. When you contribute 50-60% of your income towards purchasing the car, chances are that you will get an interest rate on your loan that is lower than others.
Improve your Credit Rating
Your credit report determines the interest rate of your loan. An affordable loan rate is more likely for you if you consistently pay your EMIs on time.
You might be declined a loan if there are unpaid dues, hard inquiries or liquidated loans on your credit report. Sometimes, lenders fail to submit your loan closure reports to the credit bureaus. If so, talk to the lender and request that the credit bureau adjust the report.
Check Documents
Car theft is common in India; hence, when buying a used car, make sure you go through all the crucial papers carefully. The Registration Certificate (RC) proves who has legal ownership of the automobile. Request the seller for their road tax receipt because if they don’t pay taxes, there is a risk of heavy fines later on. Check for vehicle insurance coverage and maintenance records to know how well cars were maintained over time. In the circumstance of any crucial papers missing, think again before purchasing this vehicle because it may be responsible for mortgages and additional costs later on.
Conclusion
Purchasing a used car is a wise choice because many car fans upgrade their cars even if they're in excellent condition. Plus, cars from used car dealers can be as good as new. Now that you know the benefits of a used car loan, pick a lender and financing option that works best for you. Car Pe Cash offers the lowest interest rates for car loans in Ahmedabad.