A second-hand car or pre-owned car is one of the undisturbed markets – both post and pre-COVID times. Due to the hassle-free process of second hand car loan, the market has seen significant growth. Another major factor that influenced people to shift towards second hand car is due to constant rise in the prices of new cars. Also, people prefer second hand car loan over new car loans due to low EMI and to avoid heavy down payment amounts.
Looking for second hand car loan, here’s how you can get it easily:
1. Knowing your car history
Prior to finalizing the second-hand car, you must properly inspect the car and the entire history of the car. For instance, if there is any change or replacement of any part, any accidental damage, or any repair work has been done on the car. Knowing the history will help to take the final decision.
2. Selecting a lender
Your lender is from who you decide to take a loan while buying a second-hand car. A second-hand car loan has various factors involved in it which dictates the loan amount and EMI that you have to pay at regular interval of time. A second hand car loan amount is decided on the basis of the model of the car, number of years the car is being used, condition of the car, and number of previous owners. Once you select your lender depending on your requirements and budget. The next step is deciding on your EMIs and finances.
3. Deciding finance
Once you decide on your car model and lender, the next important thing is deciding the finance – down payment amount, rate of interest, and monthly installment. A hard check is done when you apply for any kind of loan or credit with the lenders. The lenders usually check your entire credit report which includes your CIBIL or credit score. Your credit history and CIBIL or credit score is one of the major deciding factors at the time of loan approval. If these factors are as per the requirement, you will get your desired loan with a relatively lower interest rate. However, if you have a poor credit score and report, there are chances that your loan application might get rejected. In other cases, you might get a loan or credit with a high-interest rate.
4. Insurance Transfer
Insurance is one of the primary documents that a previous owner of the car must have. Insurance covers all the damages and unforeseen events that might occur. At the time of applying for a second hand loan, you must also check whether the owner has insurance for the car. In case he does have insurance, you must transfer the insurance to your name. Also, while transferring the insurance in your name, you must also check the date of insurance, date of expiry, terms, and conditions of the insurance, and other factors related to the insurance.
5. Submitting the documents
Documentation is vital in any process – you should have all the required documents at the time of applying for second-hand car loan. This helps in easy and quick loan approval. You must check car valuation report along with the documents mentioned below:
As identity proof, you need to submit either an Aadhar card, passport, PAN Card, Voter’s ID, or driving license. The next set of documents that is required is your address proof which includes Voter’s ID, Passport, Driving license, LIC policy, Electricity bill, or Ration card. The last set of documents that a self-employed person must have is a bank statement, profit and loss account, form 16, balance sheet, and audit sheet. In case you are a salaried individual, you must have a salary slip, bank statement, and form 16 as a part of income proof documents.
With Poonawalla Fincorp, it is one of the easiest to apply for second-hand car loan. You need to follow a few simple steps:
1. Visit our official website at poonawallafincorp.com
2. Click on the other loan section on the home page
3. Under the Pre-owned car loan section, click on apply now
4. Carefully fill out the form and upload all the necessary documents
5. Wait for the verification and assessment done by our team of experts
6. After verification, your loan will be approved and disbursed in no time.
Poonawalla Fincorp is one of the best option available when it comes to second hand car loan. You can apply online for second hand car loan by following the above mentioned steps. We are happy you to assist with your dream car with our Pre-owned car loan.
Purchasing a car is a big decision that brings with it many questions, even if its a pre-owned or used car. Which car model should one buy? Which car will be ideal for the family?
Most people prefer buying a second-hand or used car after they turn 18 and obtain a driving license. The justification is that it is good to buy a new car after honing oneâ€™s driving skills on a used car.
Gone are the days when cars used to be the symbol of luxury. A car has now become an indispensable part of the modern lifestyle, ensuring easier mobility, safety, and comfort.