Simple and Easy Steps To Get a Second Hand Car Loan

Buying a second hand car is a smart decision and if you have made up your mind, now is the time to start scouting the market. You can own any car of your choice with a second hand car loan. Increasing competition in the market has led to lucrative and low interest rates on the loan. The loan is available for all brand and types of car in the industry. You need to keep in mind that the car should not be more than eight years in age. You will be able to find second hand cars at the dealership or at the pre-owned car markets. Follow below-mentioned steps to get a quick and hassle-free loan.

1. Research: Before you finalize on any car for purchase, you need to do your homework. Research the market and look at all the available options. Buying a used car is more tedious than buying a new car and this is why you should not rush the process. Look around the market and consider all the options available for you. Then head to the dealership and understand the offers on used cars.

2. Take a test drive: Never make the mistake of buying a used car without taking a test drive in it. If you want to make the most of your investment, you need to take a test drive in the car. It will help understand the condition and performance of the car. Take an auto enthusiast friend along with you. When you test drive the car, check the engine, brakes, lights and overall performance of the car. You do not want to invest in a car that will require extensive maintenance in the long run.

3. Meet lenders: You may get a loan offer from the dealership and you can also approach reliable lenders in the country. Scout the market for different lenders and understand their eligibility criteria. You also need to compare the interest rate offered by different lenders. A low interest loan can make a huge difference to the monthly outflows.

4. Make down payment: Lenders do not offer a loan for 100% value of the car. Hence, you will have to make the down payment. You can make the minimum amount of down payment and the balance will be your loan.

5. Submit application: You can now proceed with the loan application. There is a simple and hassle-free application procedure. Fill up the application form online and submit documents of identity proof, address proof, bank statements, ITR, invoice of the used car and proof of down payment. Once everything is in place, the loan application will be processed in no time.

Understand the terms and conditions of repayment of the loan. Use the EMI calculator to get an estimate of the EMI payable each month. A second hand car loan has flexible repayment tenure and a high loan amount, thus, making it easy and hassle free for you to own the car of your choice.