A car represents freedom and independence. Owning one is a significant milestone in the lives of many Indians. These days, you can buy a used car or pre-owned car in excellent condition that can be a part of your lives for many years. Banks and NBFCs have made it very easy to get a used car loan so you can buy your dream car whenever you desire.
If you are in the market for a used four-wheeler, these tips will help make your used car loan application process a breeze:
Get a car from a reputed dealer
Where you buy your used car from plays a crucial role in getting your loan processed. Getting it from a dealer or online marketplace with a good track record will not only ensure you get a good car and value for money but also help build trust with your lender and streamline the borrowing process.
Negotiate on the price well
Once you have zeroed in on the type of car you want, negotiate on the price. Most dealers will give you an inflated price as they expect you to negotiate. Drive a hard bargain and get the best on-road estimate so that your application amount can be aligned to the cost. Having a precise estimate lets the lender know that you have done your homework and reduces the chances of the loan application being rejected due to eligibility issues.
Maintain a healthy credit score
Like every loan, your credit score is the first thing the lender will check to determine if they should disburse the loan to you. A healthy CIBIL score indicates you are in good credit standing and are a responsible borrower who will repay on time. Ensure your credit score is above 750 to get your used car loan approved smoothly.
Ensure you fulfill all eligibility conditions
Your lender will have certain eligibility conditions. These may include a minimum age, employment type, minimum salary requirement, area of residence, etc. Check all requirements your lender might have and if you meet them. Find a lender that is a good fit for you.
Arrange all required documents
You will have to submit a bunch of documents such as photo identity proof, income proof, address proof, salary slips, vehicle registration certificate, income tax returns, etc. Make sure you have all the required documents ready before you submit your used car loan application so that it does not get delayed in all the back and forth.
Whether you have your eyes set on a city-friendly hatchback or your dream luxury car, Tata Capital’s used car loan can help you drive home your new set of wheels, with the loan amount as high as Rs 50 lakh. These loans are offered at competitive interest rates and flexi EMI options that allow you to pay for your ride in a pocket-friendly manner.
Use these used car loan application tips, and your loan will be approved and processed quickly without any inconvenience. It is time to bring home that car you have always wanted.