I am planning to buy a pre used car through a loan. Where do I give my loan request?
Requests for a pre used car loan must be submitted by visiting the concerned bank branch in person although some banks also allow online submission of your loan application. The bank then approves the basic application depending on your eligibility documents submitted. Once you shortlist the car, its make and model, the bank or NBFC sends its valuation expert to calculate the present on road value of the car. The bank’s valuation expert determines the price of the car. Depending on the estimated price, the bank decides on the amount of loan
While there are a host of important things to consider before availing a Used Car Loan, the most important factor when determining the tenets of the loan is the age of the car and its model.
If the car model doesn’t exist anymore or has been phased out by the manufacturing company, then your chances of landing a loan substantially reduce. In general, the age of the vehicle, as well as the loan tenure, should not exceed seven years.
The loans offered for pre-owned cars differ slightly from those offered for new cars. The basic difference between new Car Loans and Used Car Loans is that the age of the car and its model play a key role in determining the financial intricacies of the loan.
Interest rates offered on Used Car Loans are usually around 3-4% more than that for new Car Loans. The loan offered for the purchase of a second-hand car also ranges between 60% and 80% of the value of the vehicle.
You can easily apply for a Used Car Loan online on BankBazaar. Just click here. We offer customers a fantastic range of loan options that are tailor-made to meet all your requirements. You can zero in on a Used Car Loan of your choice by browsing through and comparing different loan parameters for pre-owned cars such as interest rates, documentation required, eligibility conditions, fees and charges and more.
Before you apply for a used car loan, take in consideration the following points:
How Much Can You Afford:
If you’re constricting your budget, you may want to spend even less. Used cars will need a little extra attention from time to time for changing the old tires, maintenance and other ownership costs such as fuel and insurance. So if you’re looking to save money, consider more than one brand. We suggest making a list of three cars that meet your needs and fall within your budget which will help you in applying for used car loan
Check the Vehicle history report:
Plan to get a vehicle history report unless you’re buying it from a close friend or family member who can guarantee for its history. This is an essential early step. If the car you’re looking at has a bad history report, the sooner you know the better.
Contact the Seller:
Once you find a good prospective car, call the seller and verify the information about the You can ask private-party sellers why they’re parting with a car, or whether it has any mechanical problems. A phone call is the best way to ensure the car is still in stock if you’re buying from a dealership. Sometimes the seller will mention something that wasn’t in the ad that might change your decision to buy the car.
Have the Car Inspected:
Test-driving a used car is the best way to know if this is the right car make and model for you. If you like the car, consider having it inspected by a mechanic before you buy it.
A private-party seller will probably allow you to do this without much resistance. Most dealerships will let you borrow a car to take to be inspected by an outside mechanic.
Negotiate a Good Deal & Get the Paperwork Done:
If you are reasonable and have a plan, chances are you can make a deal pretty quickly and easily. Make a deal where you and the seller arrive at a price that sounds good to you and is near the average price paid,
If you are at a dealership, you’ll sign the contract in the finance and insurance office. There, you will likely be offered additional items, such as a warranty, anti-theft devices, prepaid service plans or fabric protection.
If you are buying a car from an individual owner, make sure the seller properly transfers the title and registration to you. It’s important to close the deal correctly to avoid after-sale difficulties.