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Tata Capital > Blog > Loan for Vehicle > Myths to Know Before Taking a Second-Hand Car Loan

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Myths to Know Before Taking a Second-Hand Car Loan

Myths to Know Before Taking a Second-Hand Car Loan

Can you recall your first car? Or are you planning on getting it sometime soon? If the answer to either situation involves a second-hand car, read on. The Indian used car market was valued at USD 21.04 million in 2018 and is expected to register a CAGR of 15.12%, during the forecast period, 2019-2024. In fact, the pre-owned car market was 1.3 times of the new car market in financial year 2018. The trends are only getting more optimistic with time.

There are several reasons why people choose a used car, to begin with. Some prefer to start small, while others think of it as a safe bet to hone their driving skills. The cherry on the cake is that it has never been easier to finance a second-hand car. Surprised? Here are some common myths about used car loans in India, busted.

1. A car loan warrants a new car

While your dealer might insist on selling you a new car, it is advisable to not over-indulge if it strains your budget. Gone are the days when availing a car loan was necessarily meant exclusively for new cars. Simply choose an old car that has not been used in some time, check for the date of manufacturing and apply for a used car loan.

2. Applying through a car dealer ensures lowest interest rates

A car dealer is just that, not a financial provider. This means that if you apply for a second-hand car loan through your dealer, you will not be able to steer negotiations in the right direction. At Tata Capital, you can be assured of low interest rates and superior customer service - so choose for YOUR benefits alone.

3. A car loan covers 100% financing on your car

If you thought a loan was going to cover the entire cost of your car, this is not quite the case. There are certain out-of-pocket costs that may still require your attention. However, you can be assured that anywhere between 85-90% of your costs would get covered. Tata Capital even allows you to choose between repayment options like ECS, post-dated cheques and online payments on availing used car finance.

4. The rules for car loans are very rigid

Given the growing popularity of used car loans In India, their ease of accessibility is only increasing. If you are within the age group of 21-65 years, earn a minimum salary of Rs. 20, 000 per month and have been working for at least a year, you are eligible for a used car loan from Tata Capital. You only need to submit proof of your identity and residence and the relevant income documents.

5. Applying for a used car loan is cumbersome

Trust the internet to make everything a cakewalk, including applying for a second-hand car loan. Gone are the days when you had to visit a branch to get all loan activities done. Today everything can be completed online, only apart from the application. You can be rest assured while the digital platform takes care of the process and grants you instant approval.

The buzzwords for used car finance today are flexibility and comfort. It is the best way to meet your fund requirements with minimum frills. The ownership of your coveted vehicle starts here.