The second hand car market is growing by leaps and bounds. Consumers are keen on purchasing a second hand car as there are several benefits of buying a second hand car, including the possibility of owning a premium used car. You can buy your dream car without burning a hole in your wallet. Most users who have recently learnt to drive, prefer to buy a used car instead of a new car. There are several options for you to choose from. The pre-owned car market is flooding with cars of different types and brands. Once you choose a car, you can apply for a second hand car loan and get finance for the purchase.
It is best to start by visiting different car dealers. It will help broaden your perspective and you will be able to narrow down on options. Buying a car from a dealership is an ideal choice but if you do not find the right car or model there, head to the second hand car market in your city. Take a good look at different cars and shortlist them. Now take a test drive in the car before you make a final decision. A test drive will help understand the performance of the car. You will be able to make a better decision only when you have driven the car. Check the engine, brakes, lights and interior in the car before you zero in on one. You need to buy a car that does not need a lot of maintenance in the long run.
Once you have decided on the car to own, scout the market for reliable lenders in the industry. Several lenders offer used car loans at low interest rate. You need to remember that you will only be eligible for the loan if the car is less than eight years in age. Check the eligibility criteria online and then make an application. Different lenders have varying eligibility criteria you need to be aware of. Fill the application form online and submit relevant documents. You will have to provide an identity proof, address proof, income proof, documents of the car you wish to own and bank statements. If you have a good credit score, the loan application will be approved in no time.
You need to remember that you will not get finance for 100% value of the car. Hence, you will be required to make a down payment. You can make the minimum amount of down payment as required by the lender and the balance will be your loan. The down payment is usually 20% to 30% of the value of the car. If you have excess funds on hand, you can make a higher down payment, which will ease your EMI amounts. Once you complete the application form and make the down payment, your loan will be processed in no time. You will receive the funds and you will be able to drive your brand new car home.
Timely payment of dues will help build a strong credit score. You can use the EMI calculator to estimate the amount of EMI payable on the loan. The calculator is available for free online and all you need to do is provide the loan amount and tenure. You will see an accurate EMI amount in no time. The calculator will help you decide if you will be able to make the EMI payment on time or not. Second hand car loan is an ideal way of purchasing your dream car and it has flexible repayment tenure.