People usually buy used cars in an effort to limit the expenses of a vehicle. Hence, it is preferable if you can buy a used car without having to finance it. However, even used cars can be rather expensive, and a lot of buyers finance them. Used car finance in India is accessible from dealerships, banks and private lenders. Still wondering how used car financing helps and whether or not you should finance your car or not? The following are a few points on how used car financing helps.
Benefits of Used Car Finance in India, through different Indian banks:
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Allowed to select any car manufactured in India within a specific age limit
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Can borrow up to 70-80% of the value of the car
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Borrow up to three to six times of annual income
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Get Flexible Repayment options, from 12 to 60 months
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Easy EMI Repayments
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Alluring car loan plans
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Attractive interest rates available for almost all car models
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Advantage of selecting any plan that is apt for you
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Special Privileges for bank account holders and senior citizens
Used Car finance rates for Car Loan in India are as usually about 3% higher than financing a new car. The factors that determine the interest rate are as follows:
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Individuals CIBIL
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Individuals monthly income
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Age of the used car is crucial
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It is unlikely to get a used car financed if the model has been phased out
These used car finance rates is to give you an overview of how used car financing helps. Although, used car finance rates on auto loans are higher as compared to home loans, but the total loan amount is lower and so is the tenure of the loan.
Another advantage of taking a used car is that you end up paying marginally less for insurance. Also, for a new car, the instant the car exits the showroom; its’ worth gets depreciated by at least 15 to 20 percent. Acquiring a used car is profitable especially in the cases where luxury cars are dreamt about but aren’t within the financial reach. So here is an opportunity to get the car that you want and that too at half the price that you were paying for a new car. Used car finance in India can help you purchase the car of your dreams.
