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Used Car Financing Tips
In general, finance is an important aspect of your life. You need finance to live a good life which is met by income from your job or your business or your profession. Whenever you have a steady source of income you can avail of a loan to buy yourself furniture or electrical appliances or even a used car. You know that your income can let you pay the instalments required to repay the car loan. We, at Tata Capital, understand your needs and we provide you with plans to finance the purchase of a used car.
5 Tips to Getting the Best Deal on Car Loans
Taking a loan for financing your used car purchase is not as difficult as you may think. We are sure you have been exposed to financial institutions and you have taken a loan before. Nevertheless, financing a used car purchase with a second hand car loan may be new to you. To help you make a considered decision we would like to highlight to you the ways and means of securing a good deal on a used car loan from us.
The following 5 tips will help pave the way for a good experience with your used car loan
Decide the budget for your car
- There are many used cars on the market to choose from. The range is extensive from the small hatch back to the mid-size sedan to the crossover to the low-end SUV to the high-end sedans and the high-end SUVs. You can visit our online car store which showcases more than 17000 cars and make a choice. You can decide the budget based on the car you want to own and the amount of EMI you can afford to repay the used car loan
Checking your Credit Report
- The chances of obtaining a loan, increases if your credit score is above 750 as 80% of the loans approved are with a credit score exceeding 750. We urge you to ensure your credit score is above 750. You should have no problem even if you have taken loans earlier as long as you have met the monthly payments towards EMI without defaulting on the instalments.
Why Shorter Tenures are great?
- Shorter tenures are always better for loans because you pay much less interest than for longer tenures. In the case of a used car loan, it is better to opt for shorter tenure so as to clear your loan quicker. You must realize your used car value keeps on depreciating as it ages. So, when you want to buy a larger car after you repay the loan for the existing car you will get a better price for your used car if you sell it after three years rather than after five years.
Don't Get Fooled by Scams
- You should deal with reputed dealers to purchase your used car. You can be enticed with unreasonable offers which may be because the car could be one that has suffered an accident and the dealer is trying to dispose it off. Dealers could fleece you with higher car loan interest rate or larger down payment citing the insufficiency of your credit rating. Sometimes, dealers may be indulging in title washing where the antecedents of the car are in question with questionable documents. Thus, we urge you to deal with reputed dealers and precisely for this reason we provide you with a service through our online car store that lets you look at over 17,000 cars from over 2,000 reputed dealers in the country
How Much EMI should you pay?
- This is a question best answered by you after considering how much you can set aside from your monthly income every month to service the EMI for the used car loan without affecting your monthly household expenses. One thumb rule could be to deduct the monthly household expenses from your monthly take-home salary and from the balance decide on the EMI you can afford. Often, if you have a great credit history we will consider lower car loan interest rates thus reducing your EMI
Why can you Trust us?
- At Tata Capital, we always keep your well-being at the forefront and create plans to suit your requirements of a used car loan. Our motto is 'We only do what's right for you,' and we carry it to the hilt when we deal with you. We uphold the incredible trust you repose in the Tata brand and we will do everything possible to give you a deal that you will not refuse.
Our Key Features of Used Car Loan
We have designed our used car loan plans so as to help you afford the car of your choice with attractive benefits which include
- Car Loan amount up to 100% of the value of select used cars for salaried persons
- Car Loan amount up to 90% of the value of cars for persons or non-individuals other than salaried persons
- Our car loan interest rates are highly transparent and follow best market practices
- Car Loan tenure is up to 5 years and in special cases up to 7 years
- Flexi EMIs - you can choose from 4 options
- Quick car loan processing within 36 hours with minimal formalities and paperwork
- Use of used car loan EMI calculator to decide on the EMI you want to pay
- The only collateral is the hypothecation of the car being financed
- Foreclosure with minimal prepayment charges
We are proud of our legacy as a Tata brand and we strive to help you achieve your life's ambitions through our well designed financial products among which our used car loan product is a fine example.
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.
Recently there have been cases of fraud being committed under the name of Tata Capital or Tata Finance. Customers are requested to read the attached advisory and be aware of misleading advertisements in the newspapers. Click here to read the advisory and be aware of misleading advertisements in the newspapers.