Car ownership is no longer a luxury, it’s a condition. It’s a necessity. However, new cars are very expensive, that is why most buyers move on to used cars as a cheaper option. This change has heightened the popularity of pre owned car loans in India. Whether you are buying your first car, or adding another vehicle to your existing fleet, financing a used car has become easier than ever. But what exactly is a pre owned car loan? How does it work? And why is it an ideal option for many of the potential buyers?
Let’s get into everything with regards to pre owned car loans right from the benefits, eligibility, interest rates to documentation and how you can get the best deal.
What is Pre Owned car loan?
A pre owned car loan is a form of financing extended by banks/NBFCs or other financial agencies to enable individuals to acquire a second hand or used car. This loan operates similar to a new car loan, and it is tailor-made for such cars to be registered and to have prior owners.
The main difference is the amount sanctioned and the interest rate which may differ to the extent of the depreciation of value of the vehicle. These loans are gaining a lot of popularity because they bring better car models at a reduced cost and the total burden of repayment also comes down vis a vis new car financing.
Why Go for a Pre Owned Car Loan?
The reasons why one may prefer to have a pre owned car loan are numerous.
1. Lower Purchase Price: Used cars are much less costly than the new ones. This means that even with a loan your overall cost and EMIs are quite manageable.
2. Wide Choice of Vehicles: Given the thriving used car market, you end up with plenty of brands, types, and may also be lucky to find one that you can’t afford to buy new.
3. Reduced Depreciation: New cars depreciate at a high rate- it goes up to twenty per cent within the first year. Used cars, on the other hand, have already depreciated and thus your investment allows you to stand more at the value of your investment.
4. Affordable EMIs: Since it is with lower loan amount and with a short loan term, then EMIs are often more affordable, and so vehicle purchase is not heavy on your wallet.
Characteristics of a Pre Owned Car Loan
1. Loan Amount: It’s up to you as a borrower since it varies from one lender to another but you can get up to eighty to ninety percent of the car’s value.
2. Loan Tenure: From one year up to five years.
3. Interest Rate: Over a bit higher than the new car loan rates, but competitive nonetheless.
4. Processing Time: Fast approvals with minimal paperwork.
The age, state and market value of the car is generally taken into account by the lenders when approving the amount for the loan.The newer and better maintained the vehicle, the easier it will be to get a loan.
Pre Owned Car Loan Eligibility Criteria
There is a different set of criteria for each financial institution, but here are the overall requirements:
1. Age: Between twenty-one and sixty-five years.
2. Employment: Salaried person or those who are self-employed earning a steady income.
3. Credit Score: Above six-fifty is generally preferred.
4. Minimum Income: Sometimes it is required that monthly income is ₹20,000 or more.
5. Employment Stability: At least, one year of work or continuity of a business.
Documents Required for pre owned car loan
To apply for a pre owned car loan some required basic documents are:
1. Proof of Identity (Aadhar Card, PAN Card)
2. Utility Bill, Rent Agreement (Address Proof)
3. Salary Slips or Income Tax Return (ITR) (Income Proof)
4. Bank Statements (Last six months)
5. Car Registration Papers and Insurance
6. Passport-size photographs
Depending on your profile, some lenders can request for other documents.
How to get the best pre owned car loan
2. Compare Lenders: Terms are different from NBFC and banks. Consider interest rates, processing fees and loan tenures before that.
3. Negotiate the Car Price: The lower price of cars means also lower money to be loaned. Do not be afraid, put yourself at a bargaining position with the seller for a good one.
4. Choose a Reliable Dealer: Buying from an authorized used car dealer can mean that you get a car that has been prop
Why Glaring Finance is the perfect partner for your pre owned car loan
When it comes to a choice for financing partner, Glaring Finance makes a name in the car loan industry that is worth trusting. Glaring Finance has a pan-India presence and a reputation for delivering tailor made car financing solutions, the process instead becomes smooth and hassle free.
This is why thousands of customers prefer Glaring Finance:
1. Quick Approval: Tend to receive instant approval and disbursal within twenty-four to forty-eight hours.
2. High Loan Amount: Ninety percent of the price of a car.
3. Flexible Tenures: Pay through comfortable EMIs for one to five years.
4. Low Interest Rates: Interest rates on even used car loans are also at competitive rates.
5. Minimal Documentation: Simple paperwork with end-to-end support.
No matter whether you are in Delhi, Mumbai, Bengaluru or any other city in India, Glaring Finance enables you to finance your car’s dreams with ease and confidence.
Conclusion
A pre owned car loan is a wise and pocket friendly way to own your dream car in your pocket without compromising on your budget. With low EMIs, quick approvals, and flexible repayments options, it has now become the prime option of many Indian consumers.
Whether you want to purchase a well-maintained sedan, an adept car at a low fuel consumption or a reliable SUV, pre owned car loan for financing is uppermost in your mind.
And when it comes to selecting a lending partner that gets you, Glaring Finance serves up just that right combo of affordability, transparency, and trust. Now go for it – discover your options, compare deals and make a confident move towards owning your next car.
FAQs About Pre Owned Car Loans
1. What happens if I want a loan for a car that is over five years old?
Yes, but it all depends on the lender. The majority of institutions favor vehicles older than eight years on the date of the loan application.
2. What if I have a low Cibil score?
Some lenders, such as Glaring Finance provide bad credit car loan solutions. You may need to submit more proof of income or co-applicant.
3. Can I prepay my loan?
That is true, most lenders let you prepay or foreclosure after the lock-in period. One may levy some small fee.
4. Is it better to get the loan from a bank or NBFC?
Glaring Finance, like many NBFCs, usually offer more lenient terms and quicker approvals than traditional banks do.