Major Benefits Of Buying A Second Hand Car On Finance

Major Benefits Of Buying A Second Hand Car On Finance

Feb 1, 2022, 6:17:21 AM Business

With the rising prices of vehicles and the financial instability induced by the COVID-19 pandemic, the demand for used cars has significantly increased. Buyers are conscious of saving more money to manage their finances during contingencies. There are also those of us who cannot afford to dip into our savings to buy a used car, and opting for second-hand car finance seems the best available option. 

Acquiring second-hand car finance enables you to better plan your monthly budget as the lenders often provide up to 90% of the vehicle’s value, and you will have to pay the rest as a down payment. You will also have to repay the loan amount with interest in equated monthly instalments (EMIs). The best part is that you can plan your repayments without harming your monthly budget and defaulting on your loan payments. 

Reason to opt for a second-hand car finance

The very reason anyone would want to apply for a used car loan is that it can give access to their dream car without making it a costly affair. Even if you do not have the budget to afford a car, you can become a car owner as it is the most financially viable option than opting for a new car. On the other hand, you will be paying less on getting insurance for a used car and enjoy a lower depreciation rate. 

Benefits of buying a second-hand on finance 

There are several benefits of acquiring a used car loan that makes opting for a used loan a better option than a new car loan. 

Maximum loan amount

Much of second-hand car finance’s popularity stems from having access to a large amount of money as a loan. Some lenders offer up to Rs. 50 lakhs as a loan. To get a maximum loan amount based on your need, you will need to ensure that you meet your lender’s age and income requirements. You must also maintain a good credit score to be able to negotiate on the loan amount. 

Attractive interest rates

Another benefit of getting second-hand car finance is that you get to enjoy attractive interest rates, which is a great factor to consider to save costs. The interest rate you get will depend on your credit score, your source of income. If lenders establish that you can repay the loan amount without default, you will likely be offered a lower interest rate. 

Flexible terms

Another benefit of getting a second-hand car on finance is that you have the flexibility to choose the loan amount you need along with the EMI period. Every lender has an online EMI calculator that helps you to calculate your EMI based on your preference. 

Furthermore, you choose to repay your loan from available multiple methods. You can opt for post-dated cheques, online payment, or Electronic Clearance Service (ECS). ECS is an auto-facility provided by your bank where the EMI is automatically subtracted from your bank account every month. 

Collateral-free

Since two wheeler finance is an unsecured loan, borrowers are not required to pledge anything as collateral. Lenders, instead, ask for a stable source of income and a healthy CIBIL score to determine your creditworthiness and then approve a loan amount and interest rate that you are eligible for. 

Online application procedure

To ensure that everyone can access funds without any delay, the entire process of acquiring a used car loan has been digitized. You can calculate your EMI, check your credit score, fill in your application form, and submit documents from the comfort of your home. Your days of standing in long queues are long gone. Apply online and get the sanctioned loan amount disbursed to your registered bank account quickly.  

Minimum documents required 

With minimum documents required, applying for a used car loan is simple and hassle-free. The documents required are your KYC documents to verify your identity, address, and age. Your bank statements, salary slips along with income tax returns, and form 16 would prove your income. Once the application and the documents are approved, you can get the loan amount within hours. 

In a nutshell

It may be tempting to buy a new car, but imagine, you can get a used version of the same desired model, and go on two international trips to your favorite destinations with the money you wanted to buy a new car. Besides that, the availability of an easy and convenient used car loan makes it a more economical option. Apply for second-hand car finance, and manage your finances without touching your savings.

Published by Abhitha Ahilya

Comment here...

Login / Sign up for adding comments.

Similar Articles