Owning a pre-owned car has become more widespread these days with newer advancements in the making of a car, enabling them to run, look, drive and last longer than they used to earlier.
Second-hand or pre-owned car loans are more affordable in terms of finances and there are more car buyers opting for pre-owned cars lately.
Benefits and the quantum of loan usually depends on the lending institution like a bank or an NBFC. Car buyers can find loans approved for pre-owned cars with competitive interest rates and flexible tenures.
There are several factors you must keep in mind before planning to invest in a second-hand car. From knowing the vehicle well to learning if all documents presented are reliable, there are many steps that must be considered before going for a pre-owned car.
Most often, loans on pre-owned cars are flexible and easy to avail. The interest rates are low and the rate of approval is high.
Investing in a pre-owned car is a smarter choice today. With all the verification and understanding of the vehicle, it makes more sense to invest in a used car over a new one. You can always buy a better variant in the same price as a new car if you opt to buy a pre-owned car.
Despite having a smaller budget, becoming a car owner is now easy if you plan and invest in a used car. Some of the many benefits of a used car loan are given below:
- The application and the rate of approval is quite easy.
- The repayment tenure will be less as the loan amount is less – this helps you save a lot on interest rates.
- You might, more often than not, get 90% or even 100% of the value of the car.
- Buying a pre-owned car will require you to take a smaller amount as loan, saving a lot of money for you in the long run.
Several banks and NBFCs are flooded across the country to give loans for new and used cars. Chola passenger vehicle loans are a great option if you are planning to buy a new car. Apps like Gaadi Bazaar also help consumers buy used and pre-owned cars which are certified and verified to avoid unwanted discrepancies.
List of documents required while opting for a pre-owned car loan:
- Identity proof of the applicant
- Recent photographs
- Address proof of the applicant
- Proforma Invoice of the vehicle (if applicable)
- Sale agreement from the seller or the authorized car dealer
- Bank statements (past 6 months at least)
- Income proof (form 16 / ITR for past year at least)
- Car valuation report
- RC copy of the vehicle
- Insurance copy of the vehicle
Always think smart before investing your hard-earned money – buying a used car is a smart way of investing your money in a car that you have been dreaming of – it is just as good as new – you only need to pick it up from the right source.