What are the major points I should know if i want to go for a pre used car loan?
Firstly car loan for pre used car for a model which is not being manufactured by the car manufacturer may be hard to get. Similarly if the car you are looking to purchase it way too old, chances of a pre used car loan get reduced significantly. Interest rates of loans offered for used cars are also on an average cost 3-4% more than that for a new car. Also the maximum amount one can expect in a pre used car loan can range from 60 to 75% of the on road price of the car.
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% higher than those of new Car Loans. The loan offered for the purchase of a second-hand car also ranges between 60% to 80% of the value of the vehicle. 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. Check these blog posts for more information - https://blog.bankbazaar.com/how-to-apply-for-a-used-car-loan/ and https://blog.bankbazaar.com/top-10-used-car-loans-take-your-pick/.
A Used Car Loan is a kind of loan facility provided to people who are considering to buy used cars or pre-owned cars. One of the biggest advantage of used cars is that they offer value for money, lower insurance, lesser registration charges, and at last - slow rate of depreciation. Today, as more and more people are opting or used car loan the competition has grown among financiers which has come as a benefit for buyers. There are a lot of offers and deals that one can look into before choosing their suitable financial institution.