How Can You Arrange Second-Hand Cars Loan For Your Second-Hand Car?

Maximum Indian lending companies offer car loans to millennials on purchasing second-hand, used or pre-owned cars. However, the model, as well as the age of your chosen car plays a vital role in financing. Depending upon these two factors, you can get car financing during the acquisition of the stated car. Lender companies consider the car model and age plus the previous loan tenure of that particular used automobile loan before approving the second hand cars loan. However, the tenure period must not exceed beyond 10 years. The older car you pick, the harder it will become to get enough funding to purchase the automobile of your choice.

Merits of Owning a Second-Hand Car

• Recently, several authorised second-hand car selling companies ensure damage-free, certified and well-maintained second-hand cars.

• For a new driver, second-hand cars are the best option for driving practice purpose since the art of driving is associated with seating a dent, breaking looking glass, etc.

• You're free from sales tax on a second car.

• Less waiting period for the delivery of the car.

• The price is usually lower than the new one.

Second-Hand Car Finance in India

Once you shortlist the particular auto make and model that you want to buy, all you have to do is search for lender organisations that offer second-hand auto finance across India. You have an option to browse a third-party website in terms to compare various used-car loan offers. Post that, select the most suitable company according to your affordability with zero processing fee, lowest interest rate, flexible repayment options and most importantly, appropriate loan tenure.

Once you chose a renowned lending organisation that promises instant loan disbursal with minimal paperwork, verify the used-car loan eligibility criteria that the lender has set.

The procedure of appealing for the used car loan

Commonly, for used-car loans, banks offer up to 80-85% over the total calculated value of the auto for the loan tenure of 1-5 years based on the cumulative lifespan of the vehicle. The tenure of the loan must not surpass longer than 8-10 years.

When you approach a lender for a second-hand cars loan, a specialist is sent to evaluate said automobile. Afterwards, the company will offer you the stated percentage of the inclusive value of the auto, essentially estimated by the valuation expert. Here you are required to make a down payment and settle the difference from your own pocket.

If you apply for the loan online, visit the official website of the finance company, download, fill up and submit the auto loan application form with some necessary documentation, such as address proof, age proof, identity proof, income proof, etc. Onwards, the company will thoroughly verify your submitted details and proceed with the loan application. Based upon the auto loan approval, the finance company or bank will disburse the loan amount directly to your account within a short span. Notwithstanding, you can also visit your nearest physical branch to apply for the same.

However, before applying for the second hand cars loan, make sure you check the auto loan eligibility criteria accurately given by the finance agency or bank. This way, you can dodge any loan rejections, which can certainly affect your credit score as well.

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