Used Car Finance Tips
For many people, buying a used car makes a lot more sense than buying a new one. First of all used cars are cheaper by atleast few lac rupees and if inspected well, are generally reliable enough to be used for many years. Secondly, money saved by not buying a new car can be invested elsewhere for future.
But nevertheless, buying used cars can be a tricky affair. And if you are planning to purchase the car using a loan, then you need to be all the more careful. So in addition to doing comprehensive technical inspection of the chosen car, you also need to be aware of few important things while applying for used car loans.
Used car loans are only given for period of upto 5 years. Banks also don't lend if the car being purchased is more than 8 years old. So while choosing the car, make sure it's not very old.
Next thing to keep in mind is the cost of the car and the amount of money that banks will be willing to lend. Banks generally don't give more than 90% of the estimated value of the car or actual sale price (whichever is lower). So unless you are capable of paying the remaining 10% from your own pocket, you might have to choose a car that costs lesser.
Otherwise, in case you need finance for used cars, have a car and you need a loan for your personal needs then you can avail a loan against your car. Here we fund up to 120% of your car valuation. Valaution is carried out by experts.
Like all other loans, interest rates play a crucial part in used car finance too. Used car loans are around 3% to 4% costlier than new car loans. But since final rates depend on factors like age of car, resale value, financial profile of customer, etc., make sure you are ready to negotiate to get better car loan interest rates. Also, its advisable that before approaching any banks, you should assess your EMIs and overall costs of the car, using any of the easily available used car loan emi calculator online.
It is also a good idea to buy these cars through certified used car dealers. These dealers carry out comprehensive technical checkups and at times, use their association with banks to help speed up the used car loan process.
So as you can see from above discussion, it's not as tough as it is perceived to get a used car loan. You just need to ensure that above points are kept in mind while buying a car and applying for car loan.
Visit tatacapital.com/cars to know more.
Car Loans are brought to you by Tata Capital Financial Services Limited ("TCFSL") and are at its sole discretion. The indicative interest rates mentioned on the website only pertain to loans availed for cars which are for personal use. For loans for cars which are for commercial use, interest rates may differ. Interest rates may differ from time to time at the discretion of Tata Capital Financial Services Limited. Terms and conditions apply.
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