Loan on second hand car, remember these tips
Loan on second hand car: If you also want to buy a used car loan, then you have to take special care of these things.
New Delhi. In this era of Corona, people have started abstaining from traveling in public transport. During the pandemic, everyone is giving importance to safe travel. Due to this there has been a sudden jump in the sale of vehicles. People want that they should come and go somewhere by their own personal vehicle, but those who do not have budget arrangements. Those people are giving more attention to the old vehicles than the new ones. Old vehicles are much cheaper than new vehicles, as well as loan on second hand car is easily available on old vehicles too. In this news, we tell you what things should be especially taken care of while taking a loan on old vehicles.
take care of your budget
Before taking a used car loan, you should take full care of your budget. You should know how much down payment you will be able to pay and how much loan you will take. If you pay less down payment then you will have to pay EMI for longer tenure. Which has a very high rate of interest.
Get to know the bank about the interest rate, processing charges and other charges of the loan. Generally, the bank decides the rate of interest on your loan installments based on your ability to pay the down payment. Along with this, he also does a thorough investigation about your credit score. Therefore, you can get a good deal by comparing on online mediums somewhere. Keep in mind that the car should not be too old. Banks are hesitant to give loans on older vehicles.
Note about loan offer
Get to know about the loan offers offered by different banks. Find out which bank is offering the lowest interest loan on used vehicles.
what is the loan tenure
In case of used cars, banks offer loans for a tenure of 5 years only. Explain that the tenure of the loan is decided by looking at the condition and age of the car. It is better that you do not buy a very old vehicle as banks and financial institutions are afraid to give loans on vehicles that are more than 5 years old, as they require more maintenance.
check all documents
Before finalizing the deal for the used car, go through all the necessary documents carefully. Check the car’s RC and insurance etc. Also, get the insurance transferred in your name immediately. Check that the vehicle is in perfect condition and does not need repair etc.
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