Getting behind the wheels of your car is a wonderful experience. But finding the right car that fits your budget and aspirations is not a cakewalk. Besides buying a house, your car may be the most expensive purchase you make. So, sometimes it makes sense to consider a used car rather than a new one.This is especially true if you consider the associated costs and depreciation value. A used car will save you money.
Today, the used car market in India is thriving, thanks to its accessibility and easy access to finance for used cars. In addition, the entry of organized companies in the market has increased the popularity of used cars among buyers as these companies ensure that used cars are guaranteed for good quality and are well maintained.
Why a used car loan?
Do you want to buy a pre-owned car without making it a difficult and an expensive affair? Used car loans can help you with that. Even if you have a low budget, you can still easily become a car owner asa used car is a lot more affordable to your pocket compared to a new car. Depreciation rates, as well as the cost of used car insurance, are lower for new cars.
Owning a car was considered a luxury, as not everyone could afford it. Buying a car was a milestone for many people, who could afford to pay for their dream car in one go. With the growing income levels, changing demographics, and the emergence of used car loan lenders, owning a car today is no longer a luxury, but a necessity, made possible by taking out a car loan.
In large cities, it is difficult to commute without a car given the quality of public transport, crowds, and fear of spread of diseases. As new cars get introduced, that have advanced technology, the cost of cars increases, often making it difficult for the average person to buy a car right away using their own money.
Therefore, in view of the huge need to finance used and new cars, India's leading lenders offer car loans, which are floating interest rate products, which allow you to buy your car and repay the loan amount gradually through EMIs.
Important Factors to Consider When Buying a Used Car
- Find out car history:
Make sure you do research on the car before you buy it. Most car details can be found online. It is important to check the vehicle history as well. This will help to determine if the vehicle has been involved in an accident. You can also check the service history to see if the car has been significantly repaired.
- Verify the health of the vehicle and inspect the documents thoroughly:
You should check the car carefully. You can take the help of a mechanic to inspect the car. In case you find any problems, you can negotiate the price or ask the owner to repair the car before buying. You can also drive in an area where there is less traffic to check for any vibrations. All relevant documents, including the registration certificate and a copy of the insurance policy, must be carefully inspected. It is also important to check the insurance documents carefully to see if the car was sufficiently insured when the previous owner used it.
- Transfer of Registration Certificate:
After buying a car, make sure the Registration Certificate (RC) is transferred to your name. The RC referral form must be signed by you and the previous owner. If the vehicle is registered in a different state, a No Objection Certificate (NOC) is required. NOC is also required if the previous owner purchased the car with funds.
- Transfer of insurance:
Always make sure the car has valid insurance. If you are buying a car, insurance should be transferred to your name immediately. Insurance is null and void if it is in the name of the previous owner, even if the RC is in your name.
- Get the car serviced before you use it:
The vehicle must be thoroughly inspected and serviced before initial use. Required fluid replacement, cleaning, and repair required should be completed prior to initial use. In the event of any damage to parts, they should be repaired.
What are the top benefits of a used car loan?
- The application process is also simple in most cases, like applying for a new car loan.
- The repayment period will be lower due to the lower loan amount. This will help you to save on interest rates.
- The repayment period can be as long as the new car loan (depending on the bank). You can easily get a loan period of up to 5 years, or in some cases, even 7 years.
- You can get a loan up to 90%, or even 100% of the assessed value of your car.
- The loan needed will be lower because the cost of the car will be lower.
Benefits of Used Car Loans from Poonawalla Fincorp
With Poonawalla Fincorp, your favorite car is just a few clicks and steps away. What makes Poonawalla Fincorp pre-owned car loan a good choice for people looking for a used car loan? Let's see below.
- Attractive interest rate
- Loan up to Rs. 30 lakh
- 90% of car value available for funding
- Minimal documentation, quick loan processing, and quick approvals
- 100% transparency with no hidden costs
- End to end doorstep process
You get immediate authorization once the application and document have been verified. Click here to apply for a used car loan now.