{"id":5250,"date":"2023-08-28T17:33:10","date_gmt":"2023-08-28T17:33:10","guid":{"rendered":"\/blog\/?p=5250"},"modified":"2024-04-05T19:46:24","modified_gmt":"2024-04-05T14:16:24","slug":"getting-a-used-car-loan-for-economy-cars-vs-luxury-cars","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-vehicle\/getting-a-used-car-loan-for-economy-cars-vs-luxury-cars\/","title":{"rendered":"Getting a Used Car Loan for Economy Cars vs Luxury Cars"},"content":{"rendered":"\n<p>Dinesh was\nlooking to buy a used car, and had a budget of Rs. 8 lakhs. But he could not\ndecide whether to buy a luxury sedan for the whole family or two economy\nhatchbacks. He could use one, and his wife and kids could use the other. He\ndecided to research a bit and check out his options. <\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/vehicle-loan\/used-car-loan.html\">Know More About Used Car Loan<\/a><\/div>\n\n\n\n<p>Are you in a\nsimilar dilemma? Your decision about the type of the car can have an impact on\nyour used-car loan. Go through this article to understand why. <\/p>\n\n\n\n<p><strong>The Basics of a Used-car Loan<\/strong><\/p>\n\n\n\n<p>Most leading\nbanks and NBFCs offer loans for buying pre-owned cars. These loans have a\nmaximum tenure of up to 60 months. A used car loan is ideal for those who want\nto buy a vehicle within a smaller budget. This is a suitable option for those\nwho want to perfect their driving skills or do not have the finances for a new\ncar. <\/p>\n\n\n\n<p>Used-car loans\nhave become popular in India as the demand for them is high. A study says that the\nmain reason for the popularity of a used car is its price. A car can be available\nat almost half its original price after being in use for a couple of years,\nwhile remaining in good condition. People who do not want to spend a lot, make\ndo with an older car. After all, it serves their purpose. This is true for\nboth, luxury and economy used cars. <\/p>\n\n\n\n<p>Lenders see\nthis as an opportunity and offer used-car loans. That way, customers with all\nkinds of financial means can own a vehicle. <\/p>\n\n\n\n<p><strong>Used-car Loans for Economy Cars and Luxury Cars<\/strong><\/p>\n\n\n\n<p>The demand is\nhigher for used economy cars as compared to\nused luxury cars. The loans for the two types of cars also have some\ndifferences. These are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Loan principal<\/strong>: The cost of a used Maruti Swift could be around Rs. 3 lakhs, while the cost of a used BMW would not be less than Rs. 15 lakhs, unless the car is very old. So, the loan amount, too, would differ between an economy and a luxury car. This factor differentiates the two varieties of used-car loans. <\/li>\n\n\n\n<li><strong>Repayment<\/strong>: Next, we come to the equated monthly installments (EMIs) for used cars. When you take a large used-car loan to buy a luxury vehicle, you end up with a larger debt, ultimately paying higher EMIs. The total loan for an economy car would be much lower, and so would the EMIs. <\/li>\n\n\n\n<li><strong>Insurance premiums<\/strong>: Considering the cost of used luxury cars are higher than economy cars, the insurance premiums are higher as well. That is usually because of the difference in values of the two types of cars. This can also affect the loan tenure. Since the amount and EMIs are higher for used luxury cars, it may take longer to repay the loan.<\/li>\n\n\n\n<li><strong>Risk-related premium<\/strong>: A good, well-made car could attract lower interest rates even after being used for a few years. This is because a well-made car with a good engine is unlikely to be less troublesome compared to another model. These are likely to be premium models. However, you may want to check your lender first.<\/li>\n<\/ul>\n\n\n\n<p><strong>To Sum it Up<\/strong> <\/p>\n\n\n\n<p>The kind of vehicle you buy has an impact on your <a href=\"https:\/\/tata-blog.osian.dev\/vehicle-loan\/used-car-loan.html\" title=\"Used Car Loan\">used-car loan<\/a>. Luxury or used, the cost can be affected by the car\u2019s age, kilometres covered, features, current condition etc. So, keep all these points in mind while choosing used car.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/vehicle-loan\/used-car-loan\/apply-now-used-car-loan.html\">Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dinesh was looking to buy a used car, and had a budget of Rs. 8 lakhs.<\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/vehicle-loan\/getting-a-used-car-loan-for-economy-cars-vs-luxury-cars\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":5251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-5250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-vehicle"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Getting a Used Car Loan for Economy Cars vs Luxury Cars - TATA Capital Blog<\/title>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Getting a Used Car Loan for Economy Cars vs Luxury Cars - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Dinesh was looking to buy a used car, and had a budget of Rs. 8 lakhs. Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/getting-a-used-car-loan-for-economy-cars-vs-luxury-cars\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T17:33:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-05T14:16:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/used-car-loans-for-economy-cars-vs-luxury-cars.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"348\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/getting-a-used-car-loan-for-economy-cars-vs-luxury-cars\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/getting-a-used-car-loan-for-economy-cars-vs-luxury-cars\/\",\"name\":\"Getting a Used Car Loan for Economy Cars vs Luxury Cars - TATA Capital Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2023-08-28T17:33:10+00:00\",\"dateModified\":\"2024-04-05T14:16:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/getting-a-used-car-loan-for-economy-cars-vs-luxury-cars\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/getting-a-used-car-loan-for-economy-cars-vs-luxury-cars\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/getting-a-used-car-loan-for-economy-cars-vs-luxury-cars\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tatacapital.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Getting a Used Car Loan for Economy Cars vs Luxury Cars\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/\",\"name\":\"TATA Capital Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\",\"name\":\"Tata Capital\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"caption\":\"Tata Capital\"},\"sameAs\":[\"https:\/\/tata-blog.osian.dev\/blog\"],\"url\":\"https:\/\/tata-blog.osian.dev\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Getting a Used Car Loan for Economy Cars vs Luxury Cars - TATA Capital Blog","robots":{"index":"noindex","follow":"nofollow"},"og_locale":"en_US","og_type":"article","og_title":"Getting a Used Car Loan for Economy Cars vs Luxury Cars - TATA Capital Blog","og_description":"Dinesh was looking to buy a used car, and had a budget of Rs. 8 lakhs. 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