Used cars fascinate youngsters as they are an affordable way to make their dream come true. As soon as you find your favourite vehicle up for sale, you are bound to get excited. But before making a purchase, remember that every used car has a history. Further, make sure that you can afford the EMIs by using a used car loan EMI calculator.

Before buying a used car from its owner, or a car dealer, make sure to get answers to all critical questions. Minor details can affect your second-hand car loan eligibility and interest rates. Here are the top 10 things that you should know before taking a second-hand car loan:

1. Am I eligible to apply for a used car loan?

You can check your eligibility online on your lender’s website after reading all the terms and conditions carefully.

2. How can I avail a loan for old cars?

Many lenders offer loans on a used car. You can enquire on a lender’s website to know all about the process beforehand. Many second-hand car dealers and agencies have tie-ups with lenders, which present an opportunity for low-interest auto loans.

3. What is the interest amount for the second-hand car loan?

You can check out a used car loan EMI calculator to know your interest and EMI based on your credit requirements.

4. Can I apply for car finance online?

Yes, you can apply online at your lender’s website and track your application to know approval status.

5. What is loan tenure for used cars?

The tenure can vary depending on the age of your car. Usually, it lies in the range of 24-36 months in India.

6. Are there prepayment or delay charges for car finance?

You may or may not be liable to these charges according to the agreement made with your lender. Make sure to ask your lender before applying for the loan.

7. What are the documents required to apply for a second-hand car loan?

Along with the loan application, you are required to present identity and residence proof and relevant financial statements.

8. Will I get a first-time buyer benefit on an old car loan?

You can check out lenders that are providing offers and discounts to first-time buyers. You can also get seasonal and festive offers from different lenders.

9. What is the loan repayment procedure for a second-hand car?

You can make EMI repayments using post-dated cheques or bank debits. The procedure is agreed upon at the time of application.

10. Do I have to make a down payment while availing used car finance?

Usually, your lenders will not offer a 100% credit for the market value or on-road price of the car. They will generally pay up to 80% of the current value of the vehicle, and you have to make a down payment for the rest.

Conclusion:

Personally, review the condition of the car and find out its age. Unlike new cars, every used car varies vastly from the other, even when they share the same model specifications. Further, you can use a used car loan EMI calculator to plan your monthly budgets and expenses.