7 Reasons Why You Should Invest in a Used Car

Owning a car has become a necessity rather than a luxury. Over the past decade, the automobile industry has evolved rapidly, leading to a sharp rise in the prices of basic car models. As a result, conscious consumers have turned their attention to used cars. There are many benefits of buying a used car. Read on to know the 7 advantages of buying a second-hand car and things to remember before buying one.

7 Benefits of Buying a Used Car

Buying a used car is considered a smart buyer’s wise decision. Here are the reasons highlighting the same:
1.    Numerous Financing Options
When you purchase a used car, you will have many financing choices like a  used car loan, making it much easier to afford. A used car loan can help you save a lot of money and bring you the same joy as purchasing a new car.
2.    Budget-friendly  
Buy the car of your choice at a lower price compared to a new car! In other words, get the benefit of driving a new-like car that offers all the features of a well-made car model.  
3.    One-Time Payment of Insurance 
You can put more money towards your car insurance premium after the money you have saved by buying a used car. This will help you mitigate issues created by high-interest insurance payments each month.  
4.    Used Vintage Car is an Investment
Some vintage vehicles are excellent at holding their value and can quickly become very sought-after. In the future, you might have a previously owned car that could bring in some cash if you decide to sell it.  
5.    Slower Depreciation on Prices
The moment you drive a brand-new car off the lot, its value starts to decline. A used car that is at least three years old, however, depreciates far more slowly. So, you won't have to worry about your investment's value declining year after year.
6.    Affordable Registration Fees
When you buy a new car, you need to pay registration fees. The registration fee for used cars is less than half that of a new car. Registration fees vary depending on the State. 
7.    Reduced Carbon Footprint
Manufacturing new cars creates a lot of waste, is labour-intensive, and increases carbon footprint. Buying a used car can help reduce the carbon footprint.  

Things to Keep in Mind While Buying a Used Car

There are some important factors that you must consider before opting for a used car to purchase:
1.    Do Your Research
Check everything about the used car, starting from its condition to paperwork. This is vital for you to understand how the car has been utilised, if it is good enough to meet your expectations, and if the documents are valid.
2.    Get a Vehicle History Report
Ask for the vehicle history and maintenance report from your seller or dealer. This will help you to know how the car was maintained, if it had any accident, or if there is any legal case against it. The car’s maintenance report will help you understand its servicing records.
3.    Inspect the Car
Before purchasing a used car, it is vital to see how it performs. Inspecting if the car’s engine is working properly or if there are issues with any components of the car.   

Used Car Loan With a hassle-free experience

A used car loan is designed to serve you with some of the best benefits of buying a used car such as:  

• High-value sanction for financing a used car.
• Flexible tenure for comfortable loan repayment.
• Available at an affordable rate of interest.
• Easy to apply, complete five steps to submit your online loan application.
• Minimal paperwork required, fast processing, and quick approvals. 
• No additional or hidden fees included and a minimal processing fee of 1%.
• Easily plan your loan with a customised used car loan EMI calculator. 

To Conclude

Investing in a well-maintained second-hand car unlocks the advantages of buying a used car. You can own a car at an affordable price, lower insurance and registration costs, reduce carbon footprint, and more! Opt for a car loan to finance your second-hand car purchase. Get a Pre-owned Car Loan of up to ?75 Lakh from Poonawalla Fincorp and enjoy flexible EMIs, attractive interest rates, minimal documentation and zero hidden charges. 

Frequently Asked Questions About Used Car Loan

1.    What is a Used Car Loan?
A Used Car Loan enables you to finance your dream car purchase at an affordable interest rate and longer tenure for repayment. You can get up to ?75 Lakh to own your dream car.  
2.    How much interest is charged on Used Car Loans?
The interest rates charged on a Used Car Loan start at 11% per annum, only.
3.    How much credit score should I have, to get a Used Car Loan?
You need to maintain a minimum credit score of 700 to meet the eligibility criteria of a Pre-owned Car Loan.
4.    What is the minimum and maximum age limit to be eligible for Used Car Loan?
You should be at least aged 24 or above to meet the minimum age criteria, while you cannot be aged above 60 to meet the maximum age criteria. 

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