Features of Used Car Loan

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Many people cannot afford to buy a new car, so in turn, they buy a luxury used car. This trend has been popular due to the numerous benefits and features of a used car loan. Features of used car loan

All the major banks and NBFCs provide various offers on used car loans, that have been specifically designed to suit the purpose. The used cars come at a reduced price as compared to a new one of the same model.

Following are the Features of Used Car Loan

  •  The loan amount granted is typically about 60% of the on-road price of the car, which may be extended to 85% in certain special cases.
  • The maximum age of the car at the time of buying should not be more than 3 years (5 years in special cases).
  • The normal tenure for repayment ranges from 3 to 5 years and not extendable beyond that.
  • The actual EMIs may be lower than that for a new car loan in most cases.
  • The interest rates applicable will be as per the terms and conditions stipulated by the particular financier.
  • The Down Payment shall not be less than 15% in any case.

Things to keep in mind

Following are some points, that every used car customer need to keep in mind while taking such loan:

  • The documentation requirement by private lenders are much more than the public sector lenders
  • There is a lot of scope of negotiation in terms of interest rate, down payment amount, repayment tenure, and the processing fee.
  • It is easier to waive off the prepayment penalty as compared to other car loans.
  • The repayment tenure being shorter, the monthly instalments are higher which one needs to be prepared for.

You can experience a hassle-free and time-saving process by availing car loans through DialaBank.

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