Do you have your eyes set on a car, but do not have the required cash at your disposal? You might wish to consider taking a used car loan.
Most second-hand vehicles will cost you less than a brand-new version, but still come at a hefty price. Especially if you don’t have enough savings to dive into, even the cost of a used car can prove to be a huge amount to be spending all at once. Taking a used car loan is an excellent way to finance your dream vehicle. There are significant benefits that accompany such a loan. Let’s take a look at some of them.
1. Maximum financing for your vehicle
People typically buy second-hand cars because they face financial constraints or want to try their hand on a used car before buying a new car. While the loan amount, and approval will depend on the age, model and condition of the car, most lending institutions will grant you a second-hand car loan that will cover about 70-90% of the cost.
2. Keep your savings intact
The biggest advantage of taking a used car loan is that you can reserve your savings for medical, family or personal emergencies. Used-car loan guarantees that you do not empty your bank account just to buy a second-hand vehicle.
3. Say bye to waiting
Usually, buying a vehicle of your choice requires you to save money for a long period of time; you have to compromise on a lot of things just to buy yourself a new car. With a used car loan, you don’t have to wait for months to buy the car of your choice. You can get your loan approved in just a few days and bring the car of your choice home quickly.
4. Credit score
While a personal loan for a new car places a lot of emphasis on credit score (given that it is unsecured), it’s not as important for getting used car loans. Because lenders do not typically give credit score much value, you may find it easier to get a second-hand car loan even if you have a poor credit score. In fact, it is also a good way to rebuild credit history, given you make your loan payments on time over 60- 84 months.
Do make sure you get professional financial advice to choose the best used car loan in India. At Tata Capital, we make the process of applying for a used car loan in India hassle-free. We also ensure quick loan approval and prompt service for the borrower. Along with that, we offer flexibility in terms of the loan amount, percentage of costs covered, car models approved, interest rates and repayment tenure. With all these perks, a Tata Capital used car loan is sure to make your life easy.