Used Car Loan
Used Car Loan
A car or any vehicle sometimes becomes a necessity when it comes to transportation or travel. Whether it is your daily commute to work, or a need to have some form of ready to go transfort for you and your family, many look at car buying the same way they do at home buying, as a necessity. No one can deny that the best way to purchase a vehicle of your own is via a regular car loan.
However, not everyone has the financial capacity to buy a brand new car, even with a loan. For this kind of semi-urban or rural demographic, buying a used car is a much more viable option. A used car in a good condition is significantly more affordable than a new one. And for this purpose, banks and financial companies offer used car loans, wherein one can purchase a used car by applying for a used car loan.
Even though a used car loan is quite similar to a new car loan, there are some key differences between them.
Things to consider in a used car loan.
Rate of interest
Lenders tend to provide a lower percentage of the cost price for used cars than for new cars. If you apply for a used car loan, you'll usually get around 70% to 85% of the loan amount sanctioned.
Of course, the sanctioned loan amount alo depends on a lot of other factors like the condition of the used car, the make, model, how much distance it has run etc.
Banks usually only give used car loans for vehicles that are not older than 10-12 years. ROI 14.5% to 18%, BT up to 150% to 200% according to profile. 100% Paperless Digital. Sometimes, if the car is older than 3-4 years, the bank may do a physical inspection of the car before sanctioning a loan.
Model of car
The model of the car is also a major factor when it comes to a used car loan. In case a particular model was discontinued from productions, banks are less willing to provide loans for such vehicles.
Your CIBIL score and credit history.
Like for any other loan, your credit history, CIBIL score, previous loans and repayment history has a huge impact on whether you can get a used car loan or not. Other factors like your income, other liabilities, number of dependents etc are also considered by lenders when deciding on your loan application.
The used car industry in India is flourishing, and it has to do a lot with the affordability of a used car as opposed to a brand new one. You can get a higher variant used car in excellent condition at an almost similar price as a lower variant car that is new.
At Cat-Eye Consultancy, we can help you find the best used car loans so that you too can finally have keys to your dream car.
A used car loan with us means you can enjoy some excellent benefits:
- Instant disbursement
- Flexible repayment schedule
- Minimal Documentation
- Excellent interest rates
- Higher loan amounts
