If you wish to purchase a second hand car, then it is absolutely essential to know how you can obtain a used car loan. There are a number of banks that offer used car loans which are quite simple to obtain if you follow a few guidelines. This form of a car loan takes into consideration the age of the car and its model for financing decisions. Mentioned below are a few things you need to keep in mind before availing a car loan.
The age of the car
Availing finance for a new car is relatively easier, but in case of used car loans, one of the crucial aspects of it is making a decision as to whether the required loan is worth taking up or not. The model of the car is also taken into consideration because if its availability in the market. If the model no longer exists, then there is a possibility it wouldn’t be financed. The age of the car and the tenure is used to determine the kind of finance it would generate. Also, the tenure is also determined on the basis of the age of a car.
The interest rates are based on the valuation of the car which is determined on the basis of the condition of the car, the number of kilometres it has undertaken and the model. This valuation will eventually help the bank of the financer to lend you money in order to purchase. Therefore, the interest rates are charged in accordance with the car model, the age of the car and the customer profile. It is better to look out for a bank than a lender because you will be offered a lowered interest rate via a bank than an NBFC. The processing of the documents does not take much time; it takes about 6 to 8 days approximately.
You can look out for a dealer
The current scenario has a growing number of people who sell their cars off as soon as a newer model hits the market. This way, you have a larger option to avail various used cars. Also, there are a number of organised dealers who source cars and certify them after which they put them up for sale. These dealers ensure the cars are in a great condition, accident free and whether the documentation work is complete or not. You can also avail a warranty of a few months to a year through these dealers.