Diwali Used Car Guide: Best Prices, Exchange Offers & Loan Tips

Buying a used car this Diwali can be a smart financial move, as the recent CRISIL Ratings report notes that India’s used-car market is growing at more than twice the pace of new car sales. This surge is driven by rising demand, festive offers and easier financing. In this blog, you’ll learn how to make the most of pricing and exchange deals this festive season, and which financing tips will help you make a confident decision.

Festive Season Pricing on Used Cars

Market dynamics during Diwali work heavily in your favour. For one, most dealers face pressure to meet annual sales targets and clear old stock before the new year. This creates genuine opportunities for price negotiations and additional benefits that aren’t available during regular periods.

Additionally, dealers and financial institutions alike tend to waive off processing fees or offer certain discounts, which means both the total cost of the car and the Used Car Loan amount you’d need are lower.

Also Read: All You Want to Know About Pre-Owned Car Loans

Making the Most of Exchange Bonuses

Exchange programmes during Diwali come with enhanced bonuses that can significantly reduce your total purchase cost. Traditional dealer exchange schemes typically offer better valuations during festive periods, while bank and NBFC partnerships provide additional exchange incentives.

Make sure you properly prepare your current vehicle; this is essential for maximising exchange value. Get multiple valuation quotes from different dealers before finalising any deal. This gives you negotiation leverage and ensures you make the most of your existing vehicle’s worth.

5 Tips to Get a Pre-owned Car Loan During Diwali

Securing the right loan for a used car during Diwali requires more than just looking at interest rates. Here are five practical tips to ensure your financing stays affordable and transparent:

1. Compare Festive Loan Offers

Compare the different lenders and dealers offering used car loans for the festive season. While some waive processing fees, others provide faster approvals or a wider range of repayment periods. Create a list of ideal lenders and compare their terms side by side before applying to secure the best possible deal that suits your repayment capacity.

2. Look For Interest Structures That Suit You

The interest rates may be tempting during this festive season, so pick a loan that has a rate you can easily afford over a set tenure. Always explore the lender’s website to find out what your interest rate could look like and pick a tenure accordingly. A short tenure results in higher EMIs but a lower total interest amount, whereas longer tenures have smaller EMIs but more overall interest.

Also Read: Why is Diwali the Best Time to Buy a Car?

3. Check Your Credit Score Early

Your credit profile strongly influences the interest rate offered to you. Check your score beforehand and rectify any errors you find. If your score is low, spend a few months clearing previous debt, paying bills on time, and increasing your debt-to-income ratio. The greater the score, the better the repayment terms could be.

4. Increase Your Down Payment If Possible

The bigger the down payment, the smaller the loan amount and the less to pay off in interest. A down payment is seen as an investment in the asset from your end, and typically, lenders view you as a more responsible borrower when you pay a hefty down payment. Narrow down on your ideal car and calculate around 18 to 20% as a down payment. All this planning should be done well in advance of Diwali so that you have the money ready for use.

5. Think About Future Flexibility

Being permitted to prepay your loan without any penalty is another aspect that you need to check. Some may allow prepayments, depending on the source of your funds, while others may charge based on the time of prepayment. Keep these details in mind when considering a prepayment.

Also Read: 7 Factors to Consider Before Applying for a Used Car Loan

To Conclude

Buying a used car during Diwali can be a smart financial step if you plan it well. By comparing festive prices, making the most of exchange bonuses, and structuring your loan carefully, you’ll set yourself up for a smooth purchase and manageable repayments. Take time to review your credit score, prepare your documents, and understand all loan terms before committing.

If you’re ready to finance your pre-owned car, Poonawalla Fincorp offers Pre-owned Car Loan options with flexible tenures and transparent terms. Apply today!

Frequently Asked Questions

Is Diwali a good time to buy a used car?

Yes, dealers and platforms often run festive offers during Diwali, making it a good time to buy a used car. You may get sharper prices, bundled benefits, or exchange top-ups. Compare total costs, not only the sticker price, to confirm value.

How do exchange bonuses work on pre-owned cars?

For exchange bonuses, you trade in your old vehicle. The dealer assesses its value and may add a festive top-up. The amount reduces the upfront payment or the loan amount you need, which can lower EMIs.

What should I check in a used car before paying a booking amount?

Verify service history, kilometres, accident or flood damage, and match VIN across documents. In addition, inspect tyres, brakes, suspension, and electronics. Finally, budget for immediate maintenance if needed.

Will my credit score impact loan approval and pricing?

Yes, a stronger score can improve eligibility and terms. Check your score in advance, correct errors, and avoid multiple simultaneous applications.