Purchasing new cars has always been an expensive affair in India, and only a portion of the audience can afford them. However, this concept is changing gradually as more individuals tend to purchase a second-hand car instead of a new one. As a result, as per recent reports, the sales of a used car are anticipated to grow at 10% CAGR.
The affordability and easy availability of second hand car finance are attributed to this significant growth. Hence, an individual planning to purchase a compact car for his wife with such advances must learn about this financing option and its benefits.
Ways to avail of a second-hand car loan at a reasonable interest rate
Here are some of the ways of availing a second-hand car finance loan at an affordable rate for intending borrowers:
- Research and compare offerings
Before availing of any credit facility, it is wise to research and compare various loan offerings extended by numerous financiers in the market. Since the rates and loan terms vary across lenders, individuals must choose the most suitable one by assessing their financial capacity.
- Opt for a lower borrowing amount
One of the biggest disadvantages of purchasing a new car is that its value decreases rapidly immediately after being driven out of the showroom. This is because the market rate of a new car significantly reduces in the early years of purchasing. Hence, to avoid massive depreciation, you can choose to purchase a pre-owned car. Considering the price of a second-hand car, individuals can decide their borrowing amount. However, borrowing a lower loan amount will ensure hassle-free repayment.
- Check loan terms
This type of credit facility will allow borrowers to decide loan amount, tenor and EMI schedule. Moreover, individuals can also choose flexible repayment options at their convenience.
However, due to its stringent eligibility and documentation, many can’t secure second hand car finance. In this regard, individuals can apply for a personal loan from leading financial lenders like Bajaj Finserv and avail of benefits.
How a personal loan is a better option than second hand car finance?
Choosing the right personal loan lender is vital to ensure easy approval at the earliest. Reputed financers come with lenient eligibility and documentation criteria. Take a look at some of the unique features of a personal loan:
- Repayment flexibility
A second-hand car loan is comparatively easier to repay than a traditional car loan. Most reputed lenders offer a flexible tenor of up to 60 months to ensure a timely repayment. However, to avoid defaults in repayment, individuals need to know about personal loans for used cars.
In this regard, individuals can also use an online EMI calculator to determine the monthly instalments and interest outgoes beforehand. Individuals can plan their finances efficiently in the long run by knowing financial liabilities.
Moreover, by knowing how to use a personal loan calculator, individuals can compare different loan offers extended by different financial institutions in the market. Therefore, it is essential to carefully choose the tenor and compare the offerings to avoid any default in the repayment.
- Easy eligibility
If borrowers are searching for an answer to what is an unsecured loan, must know that they usually come with strict eligibility. However, availing credits from leading financiers will ensure easy-to-meet eligibility parameters. For example, usually, a credit score of 750+ will allow borrowers to negotiate for better rates with lenders against their loans. Besides, following are some of the eligibility parameters that borrowers need to fulfil to avail personal loans for used cars:
- Applicant’s age should be 21-67 years
- Income depends on the applicant’s job location
Moreover, with the submission of basic documents, individuals can qualify for the credit without any hassle.
Furthermore, existing borrowers can also avail of pre-approved offers on a wide range of secured and unsecured financial products. These offers significantly reduce the hassle of documentation and save time. Therefore, customers can check their pre-approved offers by mentioning their name and contact information.
Having said so, individuals must obtain a second-hand car finance loan by carefully assessing their terms and conditions. Alternatively, they can also seek a personal loan for quick approval and disbursal.
