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Tata Capital > Blog > Loan for Vehicle > Used Cars are Worth a Buy!

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Used Cars are Worth a Buy!

Used Cars are Worth a Buy!

The automobile segment has come a long way from when there was worth only when you purchased a new car. With changing times, the perspective of car buyers has changed too. No more, people shun the idea of buying a pre-owned car, thanks to the advantages that come with it. It has become a common habit among car owners to retain a car for just two or three years, a post which they look to possess something new. And, in most cases it turns out that these cars have been used only sparingly, thereby having the element of newness intact. Aside from this, the purchasing power of car owners allows them to upgrade their garage with new models every few years. And, this wish gets duly fulfilled by the automakers that come up with innovative technology, better quality, and inspiring designs with each of their launches. Not to forget, the services provided by the new-age pre-owned car dealers. These dealers make buying a used car a pleasant affair. Most of the dealers in the market are authorized dealers which ensure that you get a legitimate deal. These dealers pay heed to the quality of the cars in the display for which every car on the display has to go through quality checks and documentation check. So, at the end of the day, what you get is a car that is almost new at a lesser price but high on quality with proper documentation and warranty too. Additionally, most of the dealers especially the ones that are authorized also assist you in availing finance in terms of a car loan.

Certainly, the price of a pre-owned car will be lesser than a new car, but still, it will run in lakhs. For example, a buyer may not want to spend on a new Ford Ecosport, and would rather choose a pre-owned one. In such a case, definitely the cost will come down but based on the resale value of the car, the cost will still remain in lakhs. So, if the buyer is not financially equipped to shell out the entire amount at one go, then the other option for him will be to apply used car loan. A car loan is like any other loan such as home loan, personal loan etc., where the basics like interest rate, EMI, loan term etc. remains same. In the case of the aused car loan, the loan amount, tenure of loan and rate of interest gets decided based on the model of the car and the resale value of the car. For car loan banks and lenders prefer to give a loan if the car is purchased from an authorized pre-owned car dealer and if the age of the car is not more than five years. Alike other loans, banks will certainly consider your income and loan repayment capacity before approving your loan. So, you must ensure that you have proper documentation of the car and also that you meet all the eligibility criteria before you apply used car loan.

Well, when you compare the aspects of buying a used car to that of a new car, you have all the reasons to cheer. And, with so much in the offer from pre-owned car dealers and banks, it is time to get over the myths and open up to the idea of owning pre-owned cars. In fact, the growing popularity of pre-owned cars has given automakers a new lease of business opportunity where many car brands – domestic and international – are seen to add a segment dedicated for sale of used cars. Now, doesn’t that make you even more comfortable to choose a pre-owned car?