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How to Get a Loan for a Used Car When Buying from a Private Seller?
Did you know you can seek a car loan to purchase a second-hand, pre-owned, or used car?
Yes, the Used Car Loans are tailor-made specifically for second-hand cars. Regardless of its use, be it private or commercial, you can avail of a Used Car Loan from Poonawalla Fincorp to pay for the vehicle. Before applying for such a loan, you must, however, verify several things.
For instance, you should inquire about the lender's willingness to offer a loan for the used car. The specific used car you're buying has to be one that the lender will finance. Some lenders, for instance, might not finance used cars that are older than three years.
1. Visit a moneylender: To apply for a Used Car Loan, go to a lender's branch office or apply online through the lender's website. Also, before applying for a Pre-Owned Car Loan, do your research to secure a better interest rate. Check out the offers on a variety of used cars at the lender's online Used Car Loans marketplace. For a hassle-free auto loan application, for instance, check out Poonawalla Fincorp's website's section on Used Car Loans.
2. Discuss the pre-owned vehicle loan with the lender: Discuss the loan's specifics with your lender, including the amount you are eligible for, the interest rate, the processing charge, the desired tenure, and your equivalent monthly instalments (EMIs). Ask the lender about prepayment fees if you believe you might want to repay the debt in full or in part or foreclose on it.
3. Submit the required documents to apply for a Used Car Loan: The lender will need supporting documentation to process your loan application. The list of documents you must give the lender is as follows:
Difference between loans for new and old cars
Used Car Loans typically have lower loan-to-value (LTV) ratio and higher interest rates than loans for the purchase of new cars. The loan amount for Used Car Loans may be much less than the seller's asking price because it also depends on how much the lender values the used car. Additionally, even though the loan term for used cars can last up to 5 years, the actual term approved will also depend on the age of the vehicle.
The Used Car Loan provided by Poonawalla Fincorp offers some of the best advantages. Every feature is intended to make the purchasing process simple and seamless. Here are a few of the best attributes:
Second Hand Car Loan: Interest & Extra Costs
When buying a used car, affordability is a crucial consideration, thus it's critical to use a tool that supports such objectives. The service provided by Poonawalla Fincorp includes some of the lowest and most aggressively competitive rates and fees on the market to meet this demand and assist borrowers in finding the best deal on the car of their choosing. When you purchase a used car from us, you can be certain that the transaction will be affordable.
The rate of interest
When you choose the Pre-Owned Car Loan from Poonawalla Fincorp, purchasing the car becomes economical. You will receive the best price for your automobile and be guaranteed an inexpensive experience thanks to our attractive interest rate, which starts at 12 per cent per annum.
Processing costs for loans
The fees we charge for performing loan processing and other administrative tasks are referred to as processing fees. Our used automobile loan carries a small processing fee of 1% of the sanctioned amount, plus taxes. You can take your used automobile home in reasonable conditions thanks to our modest cost.
Foreclosure process fees
Closing the debt is a wise decision that can result in significant savings. We charge a small 5 per cent fee on foreclosures when they are completed 6 months after the loan was made available to keep the process simple.
Penalty for paying late
A 3 per cent fine plus taxes will be assessed for missed loan payments.
LTV or Loan to Value
Purchasing a car is an exciting experience, therefore you don't want to have to make any wrong choices. You may typically receive a sanction of up to 90% of the car's value with our Used Car Loan. You might be able to take advantage of 100% financing in various circumstances and while purchasing specific cars.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Pre-Owned Car Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.
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