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


Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required

Tata Capital > Blog > Loan for Vehicle > Factors to Keep in Mind When Getting a Used Car

Loan for Vehicle

Factors to Keep in Mind When Getting a Used Car

Factors to Keep in Mind When Getting a Used Car

Nishit was an avid motorist. He owned a hatchback, but he wanted to buy an SUV to explore off-road trails. He had no experience of driving in the mountains, so he decided to start with a used Mahindra Scorpio. He decided that he would buy a new SUV once he had more experience and skills to drive around mountainous terrain.

If you, too, want to buy a used car, keep the following factors in mind:

  • Define the purpose

Like Nishit, you must have a sense of why exactly you are buying a used car. What will it be used for? Do you want to buy it to practise your driving skills? Go for a model that is like the new one you may buy later. This can help you to meet your target. Are you looking for a second family car for your kids to travel to school? Settle for a hatchback then. Are you looking for a car to ferry your entire family on long road trips? Choose an SUV. So, first define the purpose of buying the car to ensure that you find the most appropriate choice.

  • Financing:

How would you pay for the car? Are your savings enough? Or, do you need a loan? If you plan to take a loan, you must decide between a personal loan and a used car loan. A personal loan may not require any collateral. But a used car loan could offer you a lower interest rate in comparison. So, weigh the pros and cons, and choose carefully. Take into consideration loan tenure, EMI repayment and other such features to make the right choice when paying for the car.

  • Condition of the car:

Now, we come to the more hands-on factors of the used car. Check its external and internal condition. Check the body for dents, scratches, rust, and any other issue. If you notice visible damage, first assess how bad it is. Based on this, you can look for another option or renegotiate the price, whichever you prefer. Among the internal checks, inspect the brakes and the engine. Buy the car only if you are happy with the way it looks and functions.

  • Paperwork:

This is a crucial step while buying a used car. Check the registration certificate to ensure all the required and correct data has been added. Also, check the tax papers to see whether the original owner cleared the tax dues. Finally, check whether the previous owner cleared insurance premiums, and find out what insurance benefits you can enjoy.

In a nutshell

Keep these tips in mind when you buy a used car. You can browse suitable options from verified dealers like Tata Capital, which has an Online Car Store. Vehicles registered on these portals are after verified and in good condition, and includes the necessary paperwork. It is also important to check available used car loan options, if you plan on buying your car with a loan. So, what are you waiting for? Start browsing today, and you might find the right car for you just around the corner.