Having a car is like living a comfortable life. No worries of rushing to office, waiting for the bus, and standing in the long queues. But, it is not an easy task to buy a brand new car. It needs a heavy pocket. Here comes an option of used cars which comes at a cheaper price and is affordable. Banks and NBFCs provide Used Car Loan with a simple and hassle free process. You should choose one very wisely after taking care of each and every fact. Here are the 7 facts that you must know before taking a Used Car Loan:
- The Car Model plays an important role in Used Car Loan. The age of the car must not be greater than 7 years. For example, if you want to take a Used Car Loan in 2015, your selected car model must not be older than 2008. You can face difficulty in getting a Used Car Loan if the model has been phased out by the Manufacturing Company.
- Tenure of the Loan depends on the model of the car. The maximum loan tenure is 4-5 years in the case of banks and 6-7 years in the case of NBFCs. For example, if you are buying a used car in 2015 and the model is of 2009, you can get a loan amount for 1 year only. For 2010 model, it will be for 2 years.
- Banks provide maximum 80-85% funding in case of Used Car Loan on the valuation of the car. This LTV also depends on the age of the car. If the model is of 2009, you can get a loan amount of 1 Lac rupees. For 2010 model, it can be 2 lac rupees, for 2011 model, it can be 3 lac rupees. One important thing that you must keep in mind is the valuation amount of the seller and the bank may vary. The bank experts will do a valuation of the car and the loan amount will be offered on that valuation.
- Used Car Loan Interest Rates are higher as compared to New Car Loan Interest Rates. In the case of Used Car Loan, Interest Rate offered by Banks and NBFCs is 14-18%. Banks offer lower Interest rates as compared to NBFCs.
- RC/Insurance of the car must be in the name of the seller. You must check this before buying a Used Car. The seller must have a valid RC or Insurance of the car on his/her name.
- You must consider the point of Interstate Number Plate. Selling and purchasing of a Used Car is an interstate process. It means if the seller is of New Delhi, you can get your Used Car Loan approved in New Delhi only.
- Running EMIs of the seller do not have any effect on the Used Car Loan. Banks have made this loan process quite easy. The loan can be approved even if the seller has any running EMI on the Car that you want to purchase.
After considering these points, you will not face any difficulty in getting a Used Car Loan. Avail the best Used Car Loan according to your needs without any tension, any confusion and live your dreams. A luxurious life is waiting for you. Buy your own car and cherish your life with your loved ones.