With the help of a pre owned car loan, you can buy a good second-hand car. Used car loans are offered at attractive interest rates and can be repaid up to seven years after purchase. Many lenders will lend up to 100 percent of the car’s value. An individual can get second hand car finance from bank or NBFC either as a self-employed individual or a salaried employee.
Features Of Used Car Loan
- Loan amounts may be less than those for a new car. Thus, you will have lower monthly EMIs
- Long repayment period
- Certain banks and NBFCs provide second hand car finance up to 100%
- Applying for a loan is easy and can be done online
- Compared to a new car, used cars have lower insurance costs and depreciation rates
- The paperwork required is minimal
- Some banks and NBFCs offer flexible repayment terms
Important Points You Should Keep In Mind During Second Hand Car Finance
- An interest rate for a used car loan is higher than that of a new car loan and sometimes it is higher than that low interest personal loan.
- Many NBFCs and banks will not lend money if the car is over three years old
- The loan amount does not include the insurance cost
Important points to consider when purchasing a used car
The following are some essential things that you should do when buying a used car:
Check your car
Make sure the car is thoroughly inspected. It is possible to have the car inspected by a mechanic. Depending on the issue, the price can be negotiated. Check for vibrations by driving in an area with less traffic.
Examine the papers carefully
Ensure that the insurance documents and the registration certificate are thoroughly examined. Verify that the car’s chassis number and engine number match those on the copies. Make sure the car has not been involved in any accidents.
History of the vehicle
Before buying a vehicle, it is crucial to check its history. An online search can provide various details about the vehicle. It is essential to check the vehicle’s history to see if there have been any accidents or service issues.
Transfer of Registration Certificate
Immediately after buying the car, make sure the Registration Certificate (RC) is transferred into your name. Additionally, a NOC is required if the car was purchased on credit from the previous owner.
It would help if you transferred the car insurance policy to your name as soon as possible. Regardless of whether the RC is in your name if the insurance policy is in the name of the previous owner, it is void.
Servicing the car
Before you buy the car under second hand car finance, make sure it is properly serviced at authorized service center. If it is rusted, it must be repaired. Also, before you use your car for the first time, change the fluids and clean them up.
Read Also: 5 smart ways to avail of a pre-owned car