In the last couple of months, the car sellers have experienced a significant growth in the demand for second hand cars. The major reason for this sudden rise in demand for second hand cars is the current pandemic situation as people no longer find it safe to travel in public transport and have started considering the option of purchasing a used car. Besides this, even to bring home any basic to premium model of a used car, the consumers no longer have to spend their years of savings as they can simply get it financed. Nowadays, there are various banks and non-banking financial institutions that offer the incredible used car finance facility.
With this highly dependable option, you can make your everyday commute absolutely convenient, even with a tight budget. By getting your car financed, you get to pay back the entire amount of the car in the form of monthly instalments. All you have to do is thoroughly search the markets to look for that lender who can offer a used car loan at a low interest rate and with flexible repayment terms and conditions. Moreover, before purchasing, it is extremely important to make sure that the car you intend to buy is well-maintained and is not linked with any conflicting matter.
Perks you enjoy by getting a used car financed
- Flexible repayment terms – In case of a used car loan, almost every lender offers you the flexibility to decide the loan amount, EMI and the tenure so that you do not face any difficulty in repaying the entire loan amount. Moreover, you can also choose the payment method as per your convenience as the monthly instalments can be paid through online payment gateways, ECS and post-dated cheques.
- Affordable rate of interest – The interest rate may vary from one lender to another and can even get affected with factors such as your income, tenor, total loan amount and most importantly, your credit worthiness. Although the interest rates on used cars are usually high due to the risk associated with them but if you have maintained an excellent CIBIL score, then chances are that you will be offered an affordable interest rate.
- High loan amount – A bunch of lenders finance up to 90% percent of the car’s market value. This way, you get to bring home a premium model of a used car without experiencing any financial constraint.
- Favourable tenure – The lenders also allow the borrowers to choose a tenure period that suits them the best so that they can pay the EMIs without restricting other monthly expenses. Also, you must remember that a longer tenure may offer a lower instalment amount but you actually end up paying more interest, whereas a shorter tenure demands a higher EMI amount but you quickly get rid of the liability.
Are you eligible for used car financing system?
Before applying for used car finance, it is extremely important to check the eligibility criteria. You can either visit the online website of the lender or pay a visit to the nearby branch to understand his criteria. The basic points that you must meet are:
- You must have a positive CIBIL score and there should be no fault in the past payment history if you need a low interest rate.
- You should be a salaried or self-employed individual with a regular and stable source of income.
- You must fall under the age limit stated by the lender. Generally, the lender demands the applicant to be more than 18 years of age.
How to apply for a used car loan online
- Visit the website of the lender and gather all the information about the used car loans.
- Use the EMI calculator to get a fair idea about the EMI amount that you will be asked to pay. To use the calculator, enter the loan amount, interest and tenure, and this way, you will be provided with accurate figures. You can also try different loan amounts and tenure periods to find out that EMI amount which will serve you the best.
- The next step is to fill the application form by mentioning all your details correctly such as your name, phone number, email ID and the company’s or business’s name.
- After submitting the application, you will be asked to wait for a day so that your application can be assessed and approved. Once it is approved, the funds will be quickly transferred in your loan account.
To wrap up, purchasing a second hand car through used car finance facility is undoubtedly the best decision as you can avail a range of benefits. However, before applying for the loan, you must compare several lenders, their services, eligibility criteria and other features to make a wise choice. Moreover, if you wish to apply and seek approval for the loan online, all you have to do is follow the above-mentioned steps and maintain a good credit score.