Getting behind the wheels of your own car is a great feeling. But finding the right car that fits your budget and aspirations is not a cakewalk. Apart from buying a house, your car might be the most expensive purchase you make. It therefore makes sense to consider a used car rather than a new one.
This is especially true keeping in mind the associated charges, consequent expenditure, and depreciation value. A used car will save you from burning a hole in the pocket as well as from compromising on the quality.
Today, the used-car market in India is flourishing, thanks to their affordability and easy availability of used car finance. Survey reports say that for every 100 new cars sold, 220 old cars arrive in the market for sale annually and the number is around four million units. Plus, the arrival of organized companies in the market has augmented people’s preference in used cars as they ensure that the used cars are certified and well-maintained.
Why Used Car Loan?
Do you want to buy a pre-owned car without making it a troublesome and costly affair? A Used car loan can exactly help you with that. Even with budget constraints, you can now easily raise yourself to the status of car-owners for it is a very pocket-friendly option compared to its new car alternative. The depreciation rates, as well as the insurance costs of a used car, are lower than in a new car.
How to Get a Used Car Loan in India?
Availing a second-hand car loan is simple and convenient. First and foremost, check for the eligibility criteria. According to most NBFCs like Tata Capital, you need to be in the age group of 21-65 years with a minimum monthly salary of INR 20,000 and one-year job experience. Along with the application form, you need to submit documents for verification of your credentials. Once settled, the loan will be consigned to your car dealer and you will get your car thereafter.
Benefits of Used Car Loan from Tata Capital
With Tata Capital, your desired vehicle is just a few effortless steps away. What makes it an ideal choice for people seeking for a used car loan? Let’s see below.
- High Loan Amount
To buy a second-hand car, you may avail a loan as high as INR 50 lakhs.
- Unmatched Interest Rates
Though interest rates for used cars are higher owing to the risks associated for both the buyer and the lender, those offered by Tata Capital are unparalleled. While most lenders opt for around 65-80% of the estimated value of the purchased car as their down payment, Tata Capital lends Used Car Loan interest rates up to 95% of the value.
- Flexible Terms
It offers flexibility as it lets you decide on your loan amount, loan tenure and EMI period. You can also opt for a payment method as per your convenience: it can be post-dated cheques, online payment or ECS (Electronic Clearance Service), an auto-debit facility where the EMI is routinely subtracted from your bank account.
- Minimum Paperwork
For a used car loan, almost the entire process can be conducted on the online platform. The only paperwork that needs to be submitted at a branch is the application form for the loan. Even the document required is very basic and minimal, making the entire loan application process hassle-free.
Besides, you get speedy approvals once the application and document have been verified.
New cars might smell great; however, from the initial value to the long-term spending to loan availability, buying a used car is the best economical option you can avail. With the availability of more trustworthy financial options, you can now obtain cars at cheaper rates. All you need to make sure is that you are buying your vehicle from a reputed dealer along with a warranty.