The lockdown may have been lifted but the threat of COVID-19 still looms large. The need of a personal vehicle is felt every now and then when travelling in a public transport seems scary. In such a case, the need of a car arises. And if a new car seems to be a costly affair at this point in time, you can always opt for a second-hand car. And if you still wish to go slow on your finances, you can always opt for a used car finance to buy the car. This way, you will be able to move around on your own, without having to worry about contracting the virus and also, you will not have to pay the whole amount at one go.
But before taking the plunge of buying a used car, here are a few things to keep in mind:
• Type of the Car
The very first thing you need to do is identify the type of the car you would buy. You will also have to keep in mind its availability. In case the model fits your budget, you can visit the store or the dealership to check the car yourself.
• Availability of Car Finance
Once you know that you can afford the used car of your choice, you can start looking for the finance. There are a number of used car finance options available in India. There are several banks as well as non-banking financial institutions that offer such financing options. You can research about them and then get in touch with one which will provide you with the best used car finance deals.
• The Right Loan Amount
Once you decide upon the value of the used car you are thinking about buying, you can decide on the right loan amount that you need to borrow. Some of the most trusted financial institutions will offer you around 95% LTVs. Also, make sure that there is a perfect balance between your used car loan and your own contribution, if any.
• Rate of Interest
The rate of interest may usually vary with the type of the used car, your credit history, etc. However, remember that the interest rates on second hand cars are usually a bit higher than new cars. But in case you can get in touch with a good loan lender, the rate of interest might be lesser than other banks or financial institutions.
• Documentation
In order to apply for a used car loan, you will need the minimal documentation regarding your age and address proof, your income slips, and your passport size photographs. Even the eligibility criterion to get used car finance is simple if you apply for the loan from a reputed loan lender. Hence, it’s important that you do your research before getting in touch with one.
All said and done, buying a used car might be the best decision that you can take in such crucial post-pandemic time. However, it’s important that you research well about the loan lender before applying for the loan so that you can rest assured about the whole loan lending process.
Related post – 10 Advantages of Getting Your Used Car Loan Approved before Buying Your Vehicle
