Better ways to finance for second hand car
It’s a beautiful experience to get behind the wheel of your vehicle. Locating the right car that meets your budget and objectives is not easy. Your vehicle, aside from home, may be the most expensive investment you make. Despite their enthusiasm for automobiles, many people prefer to avoid purchasing new vehicles due to their high prices and rapid depreciation. That makes sense because the used automobile industry has grown to be a rich ground with a wide range of alternatives because of regular car launches model revisions. There are multiple choices available in the used car market. Consequently, finance for second hand car is a wise decision than buying a new one.
Let’s get into more depth to know the reasons for preferring used vehicles:
Affordable wide-range options
Many new automobile models are introduced and upgraded to existing ones each year. There are many options in the new automobile market, but not quite as many as in the second-hand car market. Whether you want a sedan, SUV, minivan, convertible, or anything else, the used car market has more choices than the new car market. Most importantly, by acquiring finance for second hand car, you can afford to pay for it.
Lower insurance rate
A second-hand car has a lower value than a new car, the cost of insuring it is lower. Because the vehicle has already depreciated, the annual insurance rate is lower.
Dealer-sold utilized vehicles come with a car history report and statistics. You have details like the number of prior owners, previous registration status (commercial, rental, etc. ), mileage proof, etc. You also need this information if you plan to apply for finance for second hand car. You have simple access to all of the data, making it easier to make the best decision possible.
Discount in registration charges
If you choose to buy a second-hand automobile, you can save a significant amount of money on the registration charge. Used cars are also eligible for tax reductions. Before making a purchase, make sure you check the registration fees for yourself.
The moment you buy a new car, it begins to depreciate. The depreciation continues, and after three years of purchase, the vehicle has lost half of its worth. Despite the benefits of warranties, free servicing for a year, and affordable financing, the new automobile cannot be denied the higher depreciation rate. In the case of a second-hand car depreciates slower than a brand-new one. When you acquire a second-hand vehicle, you are already paying a depreciated price.
Accessible finance for second hand car
Although it is correct that a used car loan has a higher interest rate than a new car loan. But many lending institutions make it easy to obtain used car loan eligibility by eliminating the difficulties with traditional lenders. By submitting documentation such as:
- Identity & address proofs (KYC documents)
- Valid income proofs/Bank Statement
- Passport Size Photograph
Confirming the below information:
- Resident Indian with the stability of 1 year
- Age : 18+ years
- Salaried: Employed for a minimum of one year
- Business owners: Should be in business for a minimum of one year
You will pass used car loan eligibility criteria.
Money Saver Deal
Purchasing a used automobile can help you save a lot of money. You wind up paying a fraction of the car’s original price. The value, however, is determined by the year of design and the number of kilometers driven.
Still, you must be sure that you understand what you’re looking for in an automobile, what adjustments you’re ready to make, and how you intend to assess the car’s quality. Also, don’t forget to request all relevant documents and take a test drive before finalizing the sale.