car loan

Getting a car gives an incredible feeling of freedom and independence. But for many, it can be a bit of a mission – financially and emotionally. Moreover, most people believe that buying a second-hand car is synonymous with settling on something below standard, but it is not always the case. You can get the same benefits as a new car with financing a second-hand car or even can opt for 2 wheeler loan.

Let’s take a look.

Affordable

Second-hand cars are more affordable than new cars. For instance, most people settle for an unwanted car model only to buy a new car. But, you can get the same model with lower prices in the second-hand market. It offers immense potential to acquire better brands and models.

Providing numerous options to customers is also one of the reasons why used car sales have gone up 50% in the last few years. Thus, if you are looking for a great car with all the essential components and features at an affordable price, second-hand cars can give you what you need.

Here are some additional benefits:

  1. Buying second-hand means, you have more choice and less competition
  2. You can buy a used car that is still in good condition, saving money on maintenance and repairs.
  3. There’s less risk involved when buying second hand because the capital investment is less than new cars.
  4. You can get certified and thoroughly inspected second-hand cars, which may also include a warranty.

Low Depreciation

If you want to get a car with low depreciation value, then buying a used car is the right decision. Most customers complain that the moment you drive out of a dealership with your newly-purchased car, the value begins to depreciate. In fact, the value can depreciate to 11% on your ride home. For most used cars, the depreciation period has already occurred.

Learn more: Best Loan Schemes in India for Women to Start Their Business

Easy Financing Options

Like new cars, it is equally easy to finance a second-hand car. Many financial institutions offer used car loans to customers. The used car loan process is faster and convenient. More importantly, second-hand car financing options are affordable compared to new car loans. Customers can check used car EMI calculators to learn about the monthly EMIs by entering the relevant details like the amount, tenure, etc.

Benefits of a used car loan

The second-hand car financing option is a rational way to buy a vehicle. The loan amount will be lesser than taking the same in cash from your savings account or getting an unsecured loan. Used car loans are convenient and are readily available from financial institutions, offering:

  1. Stellar interest rates: With an affordable interest rate, you can save a lot on your monthly EMI by opting for a used car loan.
  2. Minimal paperwork: Only a few documents are required to get approval for the loan.
  3. Lower monthly EMIs: Used car loans have lower instalments compared to other options like cash or unsecured personal loans. This is especially true when you opt for a used car with good condition and high value.
  4. Flexible terms: Most financial institutions offer flexible term options for used car loans, along with the option of early loan closure.

Documents required for a used car loan

  1. Identity Proof: Aadhar Card, Pan Card, Voter’s ID Card, or Passport
  2. Residence Proof: Ration Card, Driving License, or Passport
  3. Income Proof: Employment details for salaried professionals. Self-employed applicants may be required to showcase bank statements.
  4. Past loan details: If the applicant has availed a loan in the last three years, they will have to disclose bank statements of the previous loans.

Conclusion

This post outlined the benefits of buying a second-hand car. Whether you are looking for a small hatchback, sub-compact sedan or luxury sedans/SUV, you can enter the relevant details into the used car EMI calculator and learn about the EMI details to acquire your dream car.

By Russell Crowe

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