If you are one of those people who has always wanted to own a car but still find car prices sky high? It is also possible that the exact car you want is costlier and requires much more savings than you currently have. However, if you have tried finding a used car and it still doesn’t fit your budget, you can avail a used car loan to do so. While a used car loan is significantly better to manage, it is useful to know the basics of used car loans before you consider applying for one.
In order to avail a used car, you must of age above 21, have a steady source of income, and a have a level of income above INR 4 lakhs. Furthermore, you must have a set of documents that include proof of address, photo ID, photographs, proof of income, and recent financial statements.
Why is it better to go for a used car loan than a new car?
Buying a new car requires you to pay a higher price at a high amount of interest for an asset that decreases in value the most during the first 4 years of its purchase. Furthermore, the value of a new car decreases 10% the moment it steps out of the showroom. On the other hand, buying a used car saves you from paying for the initial amount of maintenance, costs at least 50% less, and you save more on a monthly basis, despite the interest on your used car loan.
What should you consider before getting a used car loan?
Before availing a used car loan, you should meticulously research and read the terms of the loan, check the eligibility of the loan, use loan calculator to know the exactly monthly instalment amount, and save accordingly to keep up with the monthly payments. Paying for a used car loan can be more affordable than paying for a new car, and will also help you increase your credit score if your complete payments on a regular basis.
While your first consideration to get a used car loan would be to go to a bank, you should know that not all banks provide used car loans. Furthermore, most car loan providers or used car loan providers might check your credit history and reject you if it is lower than 750, but Paysense provides used car loans to borrowers who are new to the credit and lending system, allowing you to get your desired car is a single click with affordable EMI options.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs