Are you excited about buying a car? But, you don’t want to risk your money buying a new car instead want to save it for a rainy day. You have a low budget, and a new-branded car costs you more so you are looking for a used car that suits your budget and meets your expectations.
If buying a top-end model is not an obsession for you, you can go for the cheaper option – a used car. This solution will eliminate the strain on your pocket. You can fulfil the wish of having a car at your home with a used one.
People often prefer a used car with all the latest features. It will function the same and provide a perfect private mode of transportation. However, your stress doesn’t end here. You have a requirement of extra cash to finance your used car.
Because of the high demand in the automobile sector, banks and private financial companies introduced used car loans to fund cars. It reduces the trouble of arranging money from family and friends. Let’s learn more about used car loans and how it works.
What is a Used Car Loan?
A used car loan is a financing option to get any used car or vehicle in the market. You can get the desired amount from a trustworthy and secure Fintech company. LoanTap is the leading financial company that offers loans with minimal documentation and EMI.
The loan amount will vary depending on the age and condition of the car. So, lenders will evaluate the car’s health and estimate the value according to the market. Along with that, borrowers can choose the loan tenure ranging from 1 to 3 years. Also, you can get an instant used car loan at affordable interest rates. You can pay back the loan amount with interest in the fixed EMI.
Why choose a Used Car Loan from LoanTap?
Online used car loans will help you get a car for your family. But, you are looking for a trustworthy and secure platform to apply for the loan. LoanTap offers a one-stop solution for all your financial needs. It brings you several features and benefits when you choose LoanTap as your lender:
- High Loan Amount: The loan amount may vary based on your credit score and income. You still have the option to choose the car model whose value lies between INR 50,000 and INR 10,00,000. No restriction on the usage of money. You can select the model you want to drive.
- Quick approval and disbursement: You need some amount to deposit for the used car. Taking an instant personal loan for a used car is the perfect solution. At LoanTap, we believe in the fastest processing of the loan. So, the loan will be disbursed within 24 hours directly to your account.
- Lower EMI: The loan amount will be smaller than the value of a new car. Thus, your monthly EMI will also be lower. A personal loan for a used car will be pocket-friendly and this is the reason for its popularity.
- Flexible repayment tenure: We have discussed earlier that a used car loan comes with flexible loan tenure ranging from 12 months to 36 months. You can choose a longer period to repay the loan and reduce EMI towards the principal outstanding.
- No Paperwork: There is no need to go through various forms to get a loan. You should have only identity cards and proof of income to get the loan approval. Check out the next module to know which documents are required.
- Lower Interest Rates: A used car loan with lower interest rates is available for those with a decent credit score. You may get lower interest rates on the loan if your CIBIL score is high.
Benefits of opting for a Used Car
If you want a new car, it could be highly expensive. The car value increases when you desire to buy an SUV or Sedan. You can go for a pre-owned vehicle to save your savings. It would cost much less than a new version of the same car model.
You may know that the value of a new car decreases the day it leaves the showroom. In the initial years, the depreciation is around 20% per year, accumulating to 50%. You can avoid value depreciation by choosing a pre-owned car.
No additional Fees & Taxes
Taxes such as road tax and green tax will not apply to a pre-owned car. So, you need the money to buy a car from the previous owner. It seems more sensible to get a loan than using a credit card.
Tips to Consider before Buying a Used Car or Vehicle
- Make sure that the vehicle has proper papers and insurance. You should also inspect the condition of all those papers thoroughly.
- You should transfer the Registration Certificate (RC) under your name to become a legal owner of that car.
- Determine the actual cost of ownership, which includes the price of the vehicle, running costs, and paperwork costs.
- Your insurance and related paperwork are to avoid hidden expenses, such as auto loan processing fees.
- Check the condition of the car before you negotiate with the owner. So, you will avoid buying a car with bad health.
How to Apply for a Used Car Loan?
Are you ready to apply for an online used-car loan? LoanTap has designed the loan process a way simpler for borrowers. As a borrower, you can disburse the loan hassle-free. It will take only a few minutes to complete the loan application. Go through the steps to get the loan instantly:
- Before applying, you should check your eligibility:
- A minimum take-home salary of ₹ 30,000/month( Salaried professional/self-employed)
- Age must be above 21 years
- You are an Indian resident/ citizen.
- Have you qualified for the loan? The next step is to collect the required documents for the KYC process. The document verification process will be paperless. All you need to do is create scanned copies and upload them while filling out the application. Here is the list of the following documents:
- Address Proof: Electricity Bill/ Driving License / Valid Passport / Aadhar Card (Any one)
- ID Proof: Valid Driving License / Valid Passport / Voter’s ID / Aadhar Card / Pan Card.(Any one)
- Self-employed should submit ITR for the last two years.
- Bank statements for the last three or six months.
- Pay slips for the last three months.
3. After uploading the documents, wait patiently till the KYC process is completed.
4. Upon verification, the funds will be transferred to your account. You can withdraw the amount as much as you want.
The Last Note
Taking a used car loan is a wise decision. It helps you to ignore all the hassles and focus on buying your dream car. Take a moment and install the LoanTap app from the Google play store/app store. Now, all financial products are available at your fingertips. There is no right time to enjoy the benefits of a used vehicle loan. If you have questions, LoanTap is available to provide financial assistance.