Top 7 Benefits Of Car Loan For Used Car
In today’s world owning a car is more of a necessity than a luxury. Luckily, owning a car has been easy with the help of car loans. There are so many choices for the customers when it comes to buying a car. It is not only about choosing a model or brand of the car but also whether you want to buy a new car or a used car. This important decision will make a huge impact on your finances. You need to decide the purpose of purchase and also understand whether you qualify for a loan or not. When you want to buy a new car with a loan, Getting finance is there are several other things which you need to keep in mind. Since there is an insurance premium attached to your new car, your annual cash outflow will increase. Hence, even if the interest rate is less, the total outflow will increase due to the insurance premium. There are many advantages of new car loans as well as used car loans. An insight into the benefits of a used car loan is given in this article.
The price of a used car will be lower than that of a new car. This means that the insurance cost will also be less. In a car loan for used car, the borrowing amount will be lower and the repayment terms are flexible. You will have a period of 60 months to make the loan repayment.
With the second-hand car segment in India poised to become the world’s third-largest market by the year 2021, the demand for second-hand car loans is also expected to rise. Therefore, various car financing companies, banks and lending institutions are now offering second-hand car loans. Below mentioned are top 7 benefits of car loan for used car.
- Cheap and Affordable :
Owning luxury cars is possible and affordable since the second-hand cars are cheaper as compared to their new counterparts.
- Competitive Second-hand Car Loan Interest Rates:
The second-hand car loan interest rates are competitive as compared to new car loans. The interest rates range between 9.80% and 17.00%.
- Flexible Repayment Tenures:
The repayment tenures are flexible ranging from 1 year to 5 years. This makes it easier for borrowers to repay their loans.
- Quickly Approved:
If the borrower is creditworthy then it is likely that the second-hand car loans are approved quickly.
- Finance of the Valuation of the Car:
Up to 90% of the finance of the valuation of the car can be utilized for purchasing of the pre-owned cars. Thus the buyer doesn’t need to compromise on the model or type of car that he wishes to purchase.
- Easy Application Procedure:
The application procedure for the loan is simple and feasible.
- EMIS for Used Car Loans:
EMIs for second-hand car loans can be paid online, through cheques or electronic clearing service (ECS). Therefore there is ease of payment for the borrower as she doesn’t need to visit the office of the lender to repay the EMI.