At some point in our life, all of us dream of owning a car and have comfortable mobility. But the practicality of our lives makes us aware that cars are expensive. Your affordability for a car doesn’t make you make the purchase so easy. This is because your practical mind prefers saving that fund for emergency purposes, and it doesn’t make any sense to spend your entire hard-earned savings behind a car.
Post lockdown, the auto industry has started to gain its stability slowly. Due to the financial crunch, many of us are preferring to buy used cars and planning to use it for a limited period of time until the threat of pandemic goes away. Due to economic uncertainty, buyers are limiting themselves to budget, and there is an increase in the sale of used cars.
We all are aware of the necessity of a private vehicle during the current times of pandemic. Owning a car has become imperative in the times of COVID-19 to ensure safe and sanitised mobility for oneself and family members.
But it is confusing to finance the purchase for your used car due to high-interest rates compared to what is offered for new cars by the lenders. The interest rates are generally higher for used car loans because the risk is higher with used cars. Also, a very little history can be discovered in the case of used cars.
Generally, a warranty is provided on a new car which is not the case with a used car. As there is no clarity on how many accidents must have happened, the condition of the engine and other parts of the car, the lenders worry about providing the used car loan.
Factors for Getting Used Car Loans
- Age and type of car
- As the average lifespan of a car is 15; therefore it is less likely that the lenders will give loan for a car which is older than eight years.
- If you are purchasing a five-year-old car, your loan tenor will be within 3-5 years.
- Be aware that banks don’t fund if it is more than three re-sales.
- If the owner already has an outstanding loan on the car, he needs to first close the pre-existing loan, get a no-objection certificate from the lender, remove hypothecation from the older registration certificate, issue a new registration certificate book without the hypothecation before putting it on sale.
Benefits of Securing Used Car Loans
- You can always opt to avail a car loan to achieve your dream. But you might hesitate as it comes with interest rates. But you can always consider a used car loan as it has its share of benefits.
- You can avail the reduced price of the car as a used car will be way cheaper than a new one. One of the prime benefits that you will avail is the reduced price of the car, which means the principal amount of your loan will be low, and you will have a low-interest rate.
- You can enjoy car loan tax exemption if you decide to opt for a used car loan. But it is only valid for cars that are used for commercial purposes.
How can PaySense help you get a Loan for a Used Car?
Banks do not provide used car loans. You might not get the approval for the entire amount of the car. You will definitely not want someone else getting to the car before you and reach an agreement with the owner on the price. Therefore, PaySense, an online loan app is the best platform for you. You will get instant approval from PaySense sitting at home once you provide them with the required documents. If there is any remaining amount after purchase, you can also use that later to repair the car.
Applying for Used Car Loan on PaySense
You need to follow the below steps to get your loan for a used car approved on PaySense.
Check Eligibility: It is mandatory for you to include the below-mentioned details in order to reach the eligibility criteria to apply for a used car loan.
- The candidate should have proof of being an Indian resident or Indian nationality
- The candidate should age between 21 years to 60 years old
- It is mandatory for the candidate to mention the employment type (salaried)
- ₹18,000 should be the minimum monthly salary for a salaried individual
- As PaySense is an online loan app; you can apply for the loan sitting at any corner of the country
It is imperative to upload the below-mentioned KYC documents.
- Identity Proof (PAN Card or Aadhaar Card)
- Address Proof (Aadhaar card, Rental agreement, Utility or Postpaid bills)
- Income Proof (Last three months bank statements)
- A clear resolution selfie
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs