Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > How to Opt for the Best Deal on Used Car Loans?

Loan for Vehicle

How to Opt for the Best Deal on Used Car Loans?

How to Opt for the Best Deal on Used Car Loans?

The demand for pre-owned cars is increasing by the day. This growth is attributed to the availability of good quality and reliable used cars in the market. Besides, pre-owned cars are more affordable than brand new ones.

Know More About Used Car Loan

There are numerous banks and Non-Banking Financial Companies (NBFCs) that offer attractive finance schemes to those looking to make a pre-owned car purchase. Therefore, getting a loan approval is an easy task. However, obtaining the best deal involves extensive research.
Keep the following five tips in mind in order to get the best deal on a used car loan.

1. Negotiate the price of the car

Though this is often overlooked, negotiating the price of the used car is the best way to reduce your borrowing amount. Dealers generally have a huge profit margin in the transaction and hence there is room for negotiation. You may visit numerous dealers and identify the one offering the best rate.

2. Research various lenders

To secure the best terms of the deal, it is important to explore numerous banks and NBFCs. Contact your local financial institution to find out the offered interest rate. Lower the interest rate, lower is the amount to be repaid. Hence, conduct a thorough research and identify the lender offering the best rate of interest.

3. Check the terms of the deal

Though Used Car Loan interest rate remains the most important aspect of a loan, it is also imperative to consider factors such as the borrowing amount, loan tenure, and repayment schemes, besides others. You may also check the fees levied on your loan. Lenders may charge certain fees like prepayment fees, processing fees, and foreclosure fees, among others. Select a lender offering the lowest charges and competitive terms of the loan.

4. Have a good credit score

Lenders check the credit score before approving a loan application. Higher the credit score, greater the ability to repay. Lenders are thereby assured of the repaying ability of the borrower. Not only does a good credit score increase your chances of gaining a loan approval, but also puts you in a position to negotiate a lower interest rate. It is, therefore, important to check your credit score before applying for a loan. You may also check for discrepancies in your credit score and rectify them, if any.

5. Choose a tenure you can afford

Loan tenure refers to the period of time taken to repay the loan. You may opt for a short loan tenure if your financial position allows you to do so. Though a shorter tenure would indicate higher Equated Monthly Installment (EMI), it will help you repay your debt as quickly as possible. Besides, the interest charged on a short tenure is lower as compared to that of an extended term. Remember, borrowing a loan for a higher tenure increases the total cost of the car loan.

Keep these tips in mind to get the best deal on your pre-owned auto loan. After all, doing your due diligence will help you save a significant amount of money.

Apply Now

Your Smooth Ride Awaits: Take a Quick and Easy Vehicle Loans!

Apply now
Popular Searches
safest car in india car down payment pdi full form tax benefit on car loan pdi checklist best cng mileage car sedan cars under 10 lakhs what is adas top rated electric cars best sedan cars in india
More About Loans
bike emi calculator two wheeler loan bike loan interest rate second hand car loan second hand car loan interest rates vehicle loan 2nd hand car loan emi calculator loan against car new car loan bike finance documents 2 wheeler on emi apply for used car loan
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools