Purchasing Used Cars with Finance – Here’s Why You Must Go for a Second Hand Car Loan

The second wave of Covid-19 pushed Indians back to their homes, with low to no options for treading out. With the easing off of this pandemic and country-wide unlocking, people are more than ever opting for a private mode of transportation than going for shared commute. The scenario has also led to an increase in the demand for second hand cars, coupled with easy purchase of used cars with finance from different lenders.

1.Used cars are a reasonable medium of commute minus the high-cost pricing of a new model. Second-hand cars are usually available at a much lesser cost than their brand new counterparts.

2.The car model variety you can get your hands on today is immense. You would thus not need to compromise on the vehicle choice and can easily purchase your desired model.

3.Used cars also come with a warranty and insurance premiums on these cars are usually low due to a reduced resale value.

All in all, purchasing a used car makes great sense while allowing you to meet your everyday commuting needs conveniently.

Not to mention, purchasing a used car with finance in the form of second hand car loan has become easier than ever. Today, several lending institutions provide financing for such vehicle purchase. Their high funding value only makes it easier to buy your desired car model.

a.Helps keep your finances from draining: Purchasing a car, whether new or second hand usually comes with a significant financial responsibility. Individuals, however, often end up utilising their savings for such a big-ticket purchase. Buying a used car with finance in the form of second hand car loan saves one from such financial depletion, only creating an affordable monthly liability one would need to meet through EMI payments.

b.High financing value: Some of the best lenders also bring financing of high-value, extending up to Rs.50 Lakh for sufficient funding of desired car model purchase.

c.Hassle-free loan processing: Further, with online application process and minimal paperwork, lenders also keep funding a hassle-free process.

d.Financing with high LTV: A used car loan is a secured advance that comes with LTV for determination of the maximum financing value. The LTV on used car loans with some of the lenders can be as high as 90% of the vehicle’s resale value.

e.Tenure flexibility for affordable repayment: With suitable lender selection, you can also enjoy extended tenure flexibility, and repay the advance in easy EMIs.

f.Competitive rates of interest: Comparison of available financial institutions also allows you to find the most competitive interest rate, which is usually lower than unsecured loan rates, making funding affordable.

Once you have decided to purchase used car with finance from your selected lender, make sure to assess the EMIs payable. Also, consider other applicable charges to gain an appropriate estimation of the total cost of the loan and apply accordingly for favourable financing.

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