We all wish to own a car, but the steep prices of\nthese metal beauties compel us to keep this dream on hold, at least for many of\nus. Be it a small car or a luxury car, the joy and thrill of driving your own\ncar are beyond explanation. Despite many\nbanks and non-financial companies offering loans, factors like eligibility,\nincome, work experience, credit score and the like hinders to even take a loan.\nHowever, there is always the option of buying a second-hand car if not a new\none. Yes, the pre-owned cars markets have evolved manifold as compared to\nyesteryears. And, there are many advantages of buying a pre-owned car too.\nDespite the model, the price of a car will certainly run into lakhs and crores.\nBut, the good news is, the price of the same car depreciates the moment it gets\nowned by someone, as much as 10-20% in the first year itself. So, imagine the\ndepreciation after three years! This means if you buy a second-hand car, you\nwill have to pay a lesser price for even a premium model. In addition, the\nnew-age car owners prefer to upgrade their garage every few years, thanks to\nthe swift launches of newer versions by automobile manufacturers. This leads to\nan influx of sparsely used second-hand\ncars in the market. So, the drop in price could come well within your\neligibility criteria for you to apply for a loan, and sparse use of the\npre-owned car gives you a chance to own an almost new car. However, the\ndepreciated price still remains in the slab of lakhs, requiring you to take a\nused car loan. <\/p>\n\n\n\n
Know More About Used Car Loan<\/a><\/div>\n\n\n\nWell, there are many who would prefer to do a direct cash transaction, there is another group that would prefer taking a\nloan to buy a car. Here are five reasons why people prefer to take used car\nloan:<\/p>\n\n\n\n
\n- Lessens the burden of\narranging lump sum of money \u2013 Agreed that the price of a pre-owned car is\nlesser than that of a brand new car, yet the cost of it will be well within\nlakhs. For example, a brand new Honda City that may cost 12 lakhs could\ndepreciate up to 9 lakhs once it is in a pre-owned car showroom. In a case like this, the burden of paying by cash is\nmuch more compared to buying the car with a loan.<\/li>\n\n\n\n
- Easy instalments \u2013\nOpting to take a used car loan allows the buyer to equally divide the amount to\nbe paid in affordable instalments on a monthly basis. Taking the above example,\ninstead of arranging 9 lakhs at one go, you will have to arrange just 10-20% of\nthis amount as down payment and remaining 80-90% can be comfortably repaid on\nthe basis of EMI. <\/li>\n\n\n\n
- Tenure of repayment \u2013\nTypically, car loans range from 1 to 5 years, but some lenders also offer loan\ntenure up to seven years. So, you can opt whether to go for a longer tenure or\nshorter tenure. In simple words, if you can afford to pay higher EMI then\nchoose for short tenure but if you are comfortable paying less EMI then you\nwill invariably have to choose a long tenure. The common factor in both the\ncases is you can choose the duration of loan repayment as per your convenience\nand affordability. <\/li>\n\n\n\n
- Purchase popular\nmodels \u2013 It has been observed that popular models have an upper hand on getting you better\ninterest rates.Popular car models are more\nefficient in making good deals in terms of lesser interest rates, processing\nfees, down payments and other miscellaneous charges, as compared to rare or\noffbeat models. Thus, loan providers make it easy for you to own the most\nfavourite picks across all variants. <\/li>\n\n\n\n
- Different\ntypes of loans and flexible rate of interest \u2013 Just like a home loan, you can choose the type of used car\nloan you would want to take. Generally, there are four different types of loan\navailable for used cars – secured loan, unsecured loan, pre-computed\nloan, and simple interest loan. So, this gives the buyer an opportunity to\nassess his repayment capacity before signing off\nloan papers. In addition, interest rates for car loans are not fixed\nand there are many lenders trying to give the best deal. So, if you have been a\nloyal customer of a bank and have maintained a good credit score, then there\nare all chances to get a negotiated rate of interest for your loan. <\/li>\n<\/ol>\n\n\n\n
With so financial advantages attached to pre-owned car loans, it is better to opt for used car loan rather than getting bogged down by the burden of arranging for a lump sum of money. So, ease your road to driving your dream car by opting for financial assistance of used car loan<\/a>. <\/p>\n\n\n\n