Benefits of used car loan

Top 6 Benefits of a Pre-owned Car Loan

March 21, 2022 • 4808 views

Are you planning to buy a pre-owned car? Consider getting a Pre-owned Car Loan! It's a smart financial move that can save you money and provide you with multiple benefits. Keep reading to learn more!

Top 6 Benefits of a Pre-owned Car Loan

Here are some of the top benefits of a Pre-owned Car Loan:

1. Higher Loan Amount: Buying a used car is easier with a Pre-owned Car Loan. You can choose a car loan offering your desired loan amount and your desired lender.

2. Flexible Terms: You have complete freedom to choose your desired loan amount, tenure, and EMIs while financing your second-hand car loan.

3. Minimal Documentation: One of the benefits of a Pre-owned Car Loan is minimal documentation, making the process faster and more convenient. You need to submit documents such as Identity proof, address proof, income proof, etc.

4. Quick Disbursal: Once your loan is approved, the loan amount will be disbursed within a few working days, allowing you to purchase your car quickly. This is especially helpful for those who need a car urgently.

5. Competitive Interest Rates: You can get a Pre-owned Car Loan with competitive interest rates, making them an attractive option.

6. No Hidden Charges: Generally, there are no hidden charges for a Pre-owned Car Loan, which reduces the overall cost of borrowing. As a smart borrower, ensure you read all the terms and conditions carefully before signing the documents.

Factors That Impact Used Car Loan Interest Rates

Following are some of the most important factors impacting the interest rate of a used car loan:

  • Loan Amount and Down Payment: The amount you borrow and the down payment you provide affect the loan-to-value (LTV) ratio. A lower LTV ratio, achieved through a larger down payment, can result in lower interest rates as it signifies lower risk for the lender.
  • Debt-to-Income Ratio (DTI): Lenders assess your DTI to evaluate your ability to manage additional debt responsibly. A lower DTI indicates a lower risk for lenders, potentially leading to a more favourable interest rate.
  • Credit Score: Your credit score is a crucial determinant of the interest rate you qualify for. A higher credit score demonstrates a history of responsible credit management, which may lead to lower interest rates.
  • Loan Tenure: The duration of the loan term influences the interest rate. Shorter loan tenures often come with lower interest rates as they may pose less risk to the lender. Conversely, longer loan tenures may attract higher interest rates due to the extended repayment period.

Also Read - Difference Between New vs Pre-owned Car Loan

How to Get a Pre-owned Car Loan From Poonawalla Fincorp?

Follow these simple steps to get a Pre-owned Car Loan from Poonawalla Fincorp:

  • Step 1: Click on the "Apply Now" button.
  • Step 2: Enter essential KYC details, including your DOB, contact details, etc.
  • Step 3: Provide details regarding your business turnover and other essential details and click on "Submit."

Your application will then proceed for verification and assessment. Upon successful verification, the loan amount will be credited instantly to your bank account.

Also Read - 8 Tips to Reduce Your Pre-Owned Car Loan Interest Rate

To Conclude

Opting for a used car loan can be a wise financial decision. Used cars come at a lower price point and can offer significant savings compared to new cars. Additionally, used car loans often offer lower interest rates and flexible repayment options and can be easier to qualify for than new car loans.

Frequently Asked Questions

1. What are the tax benefits of a Used Car Loan?

Tax benefits on a used car loan are available for self-employed individuals or when the vehicle is used for business purposes. Interest payments on a car loan can qualify as necessary expenses of a business and deducted as such for taxation purposes.

2. What is the age requirement for a used car loan?

To qualify for a Pre-owned Car Loan, applicants must meet the minimum age limit set by the lender.

3. How much LTV ratio does Poonawalla Fincorp offer on a Used Car Loan?

The Loan-To-Value (LTV) ratio represents the percentage of a car's value that can be obtained as a loan. With us, you can secure up to 100% of a pre-owned car's value as a loan. There are various advantages of a Pre-owned Car Loan with Poonawalla Fincorp, including attractive interest rates, flexible tenure and an easy application process.

Disclaimer

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

poonawalla fincorp team

Poonawalla Fincorp Team

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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