Used cars loan – It is the new normal in the automobile industry?

Used cars loan – It is the new normal in the automobile industry?

People often say, dreams rarely get fulfilled. Well, the saying entirely depends on an individual who may or may not want to turn his dream into reality, either way. For instance, a couple of years back, it was impossible to talk to people without a fixed cellphone. In fact, communicating with people via a mobile device was dreamlike. But, nowadays, it’s a reality.

Similarly, with the way things are shifting, having your own car isn’t any more an impossible dream. All credit goes to a used cars loan, for which you can purchase a pre-owned vehicle at a convenient rate and ROI without much hassle.

How does technology help?

Since the advancement in the sphere of technology has taken a place in leaps and bounds, having your own vehicle isn’t back-breaking. In fact, technology is helping people across the world to turn their dreams into reality. Since technology helped us to communicate with anyone from anywhere at any time, today, it also made it possible to purchase a car by just applying for a simple car loan.

Today, you can have a new or old car with just a few clicks. With pre-owned car loans, you can arrange funds for a second-hand car and own the vehicle of your dream from anywhere, anytime. All you need is to browse a suitable lender or loan provider to get the dream car instant. However, you have to pass the pre-owned car loan eligibility criteria for that as well.

Used car loan: An Overview

A used car loan is a car finance option that you can receive from any bank or financial organisation to buy a second-hand car. The loan amount approval usually depends on the condition of the vehicle and its vintage period, along with the valuation that the loan provider arrives at. However, the whole tenure can range between 1 to 7 years.

Also, the rate of interest on the pre-owned car loan majorly depends on two principal factors – the car and your credit score. So, if your credit/ CIBIL score is high, the probability of your loan getting approval will be high. And the lower CIBIL score means a higher interest rate.

Perks of opting for a used car loan

Obtaining a used car loan is kind of equivalent to acquiring a new car loan. Used cars loan is much simple, easy to manage and hassle-free. Also, the constraints are very minimal when applying for a pre-owned car loan. `Anybody can avail of this loan by showing their stable income and capacity to repay it. Besides, you can secure a vehicle loan for a minimum of 1 year to a maximum of 7 years with benefits, including:

  • Some banks and non-banking organisations offer up to 100% of the requested fund.
  • No minimum paperwork is needed.
  • The loan process is uncomplicated. You can apply online too.
  • You can get a flexible tenure period from your lender.
  • Plus, any individual can obtain lucrative interest rates with quick disbursement and approval.
  • The EMIs will be very pocket friendly as the expected amount for a used car is pretty less than a new car.
  • Used car loans bring massive features and benefits with no hassle at all.

Pre-owned car loan eligibility: What to consider?

There are a few points you need to consider while applying for a pre-owned car loan:

  • Visit the nearby branch of your preferable bank or NBFC to know the documents and other details.
  • Submit the following documents along –
  1. Valid KYC (voter card, Adhaar card, pan card, etc.)
  2. Passport size photograph
  3. Car valuation report
  4. Signature
  5. Income proof
  • Do your own homework and complete thorough research on the banks and NBFCs.
  • Compare the available ROIs, tenure and payment process.

A few last words

The best thing about getting a used cars loan is that you can purchase your dream car at the best possible price along with the lowest interest rates. Also, if you sustain a good relationship with your lender, it will help you get a great deal on this loan scheme. And, it will aid you to save money, too. Start your car owner journey with a used car loan today!

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