I am looking to buy a second hand car. Can I get a car loan? Is it advisable to go for such a loan?
Good to know that you are planning to buy a pre owned car. The pre owned car market has evolved over the years and one can definitely save a good sum of money buying a pre-owned car compared to a new one. As far as car loans for pre owned cars go, surely you can opt for one but the age of the car and its model play a key role in decision the financial intricacies of the loan.
Also you will need to pay a higher down payment in case of a second hand car loan as loan offered usually ranges between 60 to 70% of the current road price of the car. The interest rate for second hand car loan is also 3 to 4% higher than conventional car loans.
Most banks offering car loans for pre owned cars, but make sure that the age of the car and the tenure of the loan should not exceed seven years. For example if the car you shortlist is three years old, then the maximum loan tenure you can get if four years.
Getting a Used Car Loan has become far simpler and many banks offer good interest rates and deals. Nowadays, getting a loan for a pre-owned car is a lot easier than it used to be. The easy availability of loans for used cars along with a wide range of buying options have all helped the pre-owned car segment rise exponentially in the recent past.
You need to keep in mind that the 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.
However, there are a host of things you need to consider before applying for a Used Car Loan. Click here to read more.