It is possible to take the car loan for funding the buying of used car. There are varied lenders in the market which are ready to offer you loan for buying used car. However, it is necessary to closely read their terms and conditions before zeroing in on a particular option.
Used Car Loan: The Easy Way Of Financing Your Dream Car
Used car can be considered as one of the right alternative for all those who dream of owning a car but is struggling with their finances. Many people prefer to select used car when they are purchasing it for the first time. It is due to the fact that these can be considered cheaper as compared to other alternatives. There are varied ways by which you can finance buying of your used car and car loan is one of the options of this.
Once you have decided on which car you will buy the next step which comes is assuming that you have less money which can bring home your car and it is not possible to take the help of folks and kin for this. Do not lose your hopes as you can get a car loan. By stepping into the world of internet, you can find varied used car loan options. These can be from banks, financial institutions, dealers and many more. You only require going through these offers and selecting the one which you think well suits to your all needs. It is recommended to find one near to your vicinity.
Under the aegis of these car loans, you can easily get nearly 80 per cent-85 per cent of the total loan amount required and the remaining amount would be required to pay by you as the down payment. If you will make a payment of larger amount as down payment then you will benefitted with it as you will require paying low rate of interest. Moreover, before approaching the lender, it would be beneficial to get a complete knowledge about the car loan price which will in turn help you in getting the exact amount. Moreover, if you will choose a car which will suit your budget then it will help you in paying back the source amount.
Although the used car loan might come at a less value due to the low cost of the car, however, it is not a cheap loan. Let’s find out some important things which can make this loan costly-
- The rate of interest on used car loans is comparatively high as compared to new car loan. While, it is possible to get the loan for new car anywhere between 12 per cent, whereas, the used car loans come at high interest rates, which could be increased to 20 per cent.
- Moreover, the amount of loan sanction in the new car loan can go up to 90 per cent of the car value, however, this amount drastically decrease in case of used car loan.
How To Avoid Car Loan Fraud In India?
In India, there are large numbers of people who apply for car loans for financing the buying of their dream car. However, there are large set of consumers who are duped by agents while applying for car loan. There are some ways by which you can protect yourself from car loan frauds-
In India, there are large numbers of people who apply for car loans for financing the buying of their dream car. However, there are large set of consumers who are duped by agents while applying for car loan. There are some ways by which you can protect yourself from car loan frauds-
Never pay any cash or fee to agent for getting car loan- Never pay back any bank person who promise you to provide a loan. Generally, no bank charge processing fee upfront and it is deducted in your sanction loan amount. Therefore, any person who asks for the fee for getting the car loan sanctioned is misguiding you and there are chances that they will run away with your money and you will never get loan. It is necessary for customers to understand that banks pay their agents for loan disbursement and therefore, these agents should not charge anything from customers.
Carefully read car loan agreement before signing it- Once your car loan agreement is approved, you should fully read the agreement before signing it.
Check EMI of your car loan- It is necessary to carefully calculate EMI of your car loan, which you can do with the help of emi calculator.
Check id proof of the person to whom you are giving documents- It is necessary to check the authenticity of the agent to know whether he is authorized to receive all documents or not.
Check your credit score- Before sanctioning loan, lenders check credit score of the person to know whether he has some credibility or not.
