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Used car sales in India have grown steadily since middle-class consumers increased their purchasing power. As people's incomes rise, they want to buy a car rather than just a two-wheeler. Pre-owned cars offer the same benefits as new cars at a much lower price and old car finance in Lucknow.
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Pre-Owned Car Financing: A Quick Guide Used car sales in India have grown steadily since middle-class consumers increased their purchasing power. As people's incomes rise, they want to buy a car rather than just a two-wheeler. Pre-owned cars offer the same benefits as new cars at a much lower price and old car finance in Lucknow. Switching from a two-wheeler to a used car offers the following benefits: a. Comfort b. Safety c. Weather protection d. More seating options e. Extra storage space It's common for people to worry about buying a poorly maintained car before buying a used one. Despite this fear, used cars still make a better choice because:
a. Reasonable Prices: Used cars of good brands are often cheaper than new ones. Save money, use your assets, pay off your debts quickly, and use the spare money for something better. b. Reduced Depreciation: Cars lose value as soon as they leave the lot. As a result, older cars depreciate more slowly due to initial depreciation. c. Better Insurance: New cars are more expensive, so insurance is more expensive. Depreciated values lower insurance rates on older cars. d. Performance and Reliability: New and used cars have similar reliability and performance, especially if they are not older than 2-3 years. e. Long-Term Warranty: Some cars come with an extended warranty, or you can purchase one later. This helps to protect your car and provides complete peace of mind. f. Factory-installed accessories: You may want to add extra features to your new car, such as alloy wheels, spoilers, bumper guards, etc. Such systems are quite expensive to install. When you buy a used car, many of these accessories are free. g. Help Environment: The manufacturing and early shipping of cars releases a large amount of CO2. The use of a used car is a cost-effective way to reduce your carbon footprint as well as save money. The benefits of pre- owned car loans extend not only to used cars. Second hand car finance has the following features and benefits: ●High Loan Amount: With a car loan for second hand car, you can obtain a fund amount between 50,000 and 5 lakh. Despite this, the loan amount can vary depending on several factors. A used car loan calculator can help you check your eligibility. ●High LTV:
LTVs are higher for used car loans. You can get up to 90% LTV depending on the model and age of the car. ●Flexible Tenure: It is expensive to buy a car. Therefore, many lending institutions allow you to manage your budget and make on-time EMI payments with loan repayment flexibility. Pre-owned car loans typically have a five-year repayment period. ●Quick Approval: Lenders are quick to assess your profile due to the hypothecation of your second-hand car. With this, you can receive your pre-owned vehicle within 48 hours. ●Value for refinancing: You can refinance a used car or top up a used car loan if you pay your loan on time. You can second hand car refinance for up to 175% of its value. Eligibility check for used cars Want to buy your dream car with a pre-owned car loan? To qualify for a loan, you must meet the following requirements. 1.Indian resident 2.Age must be over 18 3.Employed or own a business 4.Employed applicants must have at least two years of employment and six months at their current job. 5.A minimum of one year of business experience is necessary for business owners. 6.Pre-owned car loan documents: ●Identity proof ●Address proof ●Proof of income ●Passport-size photographs Read More - There Are 8 Things You Should Know Before You Apply For A Used Car Loan
Your pre-owned car loan approval will depend on these factors Understand how a used car loan approval and interest rate are determined. If you lack any of the contributing factors, work on improving them before applying. ●Used Car's Age: New cars depreciate quickly. It may be difficult for a lender to recover its loss if you default on a pre-owned car loan. Therefore, your car's age is crucial in determining the loan approval. ●Car's Condition: Poorly working cars are not considered by the lender. To determine the condition of a car, insurers review claims histories and service records. You have little chance of getting a loan if your car is in poor condition. ●Car Documents: Check the car's RC papers, insurance papers, original sales invoice, and service book before applying for a pre-owned car loan. ●Credit Worthiness: Used car loans are available to people with low credit scores. This does not imply that the lender will accept a borrower with a history of default or missed EMI payments. Make sure you qualify for used car financing before applying for a loan. Source Link - https://carkharidobecho24.com/pre-owned-car- financing-a-quick-guide/
